Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Monetary Mechanisms > Payment instruments and payment systems > Flashcards

Payment instruments and payment systems Flashcards

1
Q

What are payment service providers?

A

They are institutions that can transfer funds.

  • credit institutions
  • payment institutions
  • other institutions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a credit transfer.

A

Is a payment instrument:

  • the payer sends a payment order to a bank requesting a defined amount of funds to be transfered to another person’s account.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is direct debit?

A

Direct debit is a payment instrument:

  • the beneficiary requests the bank of the payer for a sum of money to be drawn from his/her account to the beneficiary.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a payment card?

A

A payment card is a physical or virtual instrument that can be used to perform payment tranzactions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the payment tranzactions?

A
  • withdrawl of money from ATMs
  • to make payments to merchants that accept cards
  • to make payments to fiscal authorities (bills etc)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the credit card classifications?

A
  • by function
  • by the issuer
  • by the technology
  • by the settlement date
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Payment card function classification:

A
  • credit card (draw funds up to a limit, with grace period)
  • debit card (draw funds up to the available funds in client’s account)
  • debit card with overdraft (same as debit but with a fund extension)
  • prepaid card (rechargable or non rechargable card)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Payment card issuer classification:

A
  • bank card (issued by a bank)
  • store card (issued by retailes and service providers, they usually offer clients discounts at shopping)
  • co-branded card (issued by a bank in partnership with a retailer, it offers discounts to clients and income for both partners)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Payment card technology classification:

A
  • card with magnetic stripe
  • smart card (with microchip)
  • dual card
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Payment card settlement date classification:

A
  • pay now (debit cards)
  • pay before (prepaid cards)
  • pay later (credit cards)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is E-money?

A

E-money is money that exists in the banking computer system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is a cheque?

A

It is a document trough a client gives an order to a bank, to pay another person upon pressenting the document.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a bill of exchange?

A

A bill of exchange is a document trough which a client gives an order to another person to pay at maturity, an amount of money to a 3rd party.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a promisory note?

A

A promisory note is a document trough which the issuer agrees to pay an amount of money at maturity, in a certain place.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a letter of credit?

A

It is a contract trough which a bank agrees on behalf of its customers to authorize another bank to make a payment to the beneficiary.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a bank letter of guarantee?

A

It is a guarantee made by a bank on behalf of a client. If the client fails to deliver the payment, the bank will pay the debt.

17
Q

What is RTGS?

A

RTGS (Real time gross settlement) is a payment system that settles large value payments on one-to-one basis.

18
Q

What is ACH?

A

ACH (Automated clearing house) is a payment system that settles low value and large value (retail) payments

19
Q

What are the large-value payment systems in the eurozone?

A
  • TARGET 2
  • EURO 1
  • STEP 1
20
Q

What are the retail payment systems?

A
  • STEP 2

- SEPA

21
Q

What is TARGET2?

A

TARGET2 settles payment tranzactions one-by-one

It settles:

  • monetary policy operations
  • interbank transfers
  • other large-value or urgent euro payments

(it is one of the largest payment systems in the world)

22
Q

What is EBA?

A

EBA is a private provider of euro clearing systems, offering both high and low value clearing trough:

  • EURO1
  • STEP1
  • STEP2
23
Q

What is EURO1?

A

EURO1 is a large value payment system for domestic and cross-border payments in euro

24
Q

What is STEP1?

A

It is a payment service for individual commercial payments

25
Q

What is STEP2?

A

It is a retail payment system in euro (up to 50000 euro/transaction)

26
Q

What is SEPA (Single European Payments Area)

A

SEPA enables customers to make non-cash euro payments to any beneficiary located anywhere in the euro area

27
Q

What are the objectives of SEPA?

A
  • the create a single domestic payments market
  • to eliminate the differences between domestic and cross-border payments in euro
  • to bring constructive economic outcomes and opportunities

Monetary Mechanisms (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions