quiz 1 study Flashcards
deposit
money put into a bank account
withdrawal
money taken out of a bank account
savings account
a special bank account for storing money for future use
checking account
a monetary account that allows the holder to withdraw checks against money that has been deposited into it
simple interest
interest paid only on the principal in a bank account
compount interest
interest earned not only on the principal in a bank account, but also on the interest earned on the account
check
directs a bank to deduct money from your checking account to make a payment
bank statement
lists all your checks that the bank has cleared; including automatic transfers, ATM transactions, and deposits that the bank has recorded since your last statement
account statement
a bank statement that shows all deposits, withdrawals, and interest credited to an account
balance
the amount of money you have in an account
principal
the amount put into an account on which interest is based
Automatic Teller Machine (ATM)
a bank machine that allows you to withdraw money electronically using a card
Personal Identification Number (PIN)
a personal number or bankcard that gives you access to your bank account electronically
check register
a record you keep of your checking account deposits, withdrawals, and transfers
online banking
doing bank transactions, such as loan payments and fund transfers, electronically over the internet
interest
the amount of money paid for the use of a lender’s money
daily compounding
interest on an account that is computed each day and added to the account balance
what is needed to open a bank account?
valid government ID
social security number
minimum deposit
parent or guardian if under 18
how does a bank make money?
interest forgone
interest on lending
fees and charges
how do you fill out a check?
- write the date
- write the recipient
- write the amount in numerals
- write the amount in word form
- add a notation for what it’s for
- sign the check
