Unit 3

Question 1

Commercial Banks

Answer 1

For-profit and owned by stockholders
Profits go to stockholders
Almost anyone can own an account

Question 2

Credit Union

Answer 2

Non-profit and owned by their members
Members pay lower fees and earn higher interest rates
Share profits with members
Must be eligible to open an account

Question 3

Payday Lenders

Answer 3

Receive a small cash advance which must be paid in two weeks
Charge high fees

Question 4

Check Cashers

Answer 4

Charge a fee to cash check for people who don’t have a bank account
Charge high fees

Question 5

Common Banking Services (13)

Answer 5

Cash
Deposit/Withdrawal/Transfer $ (in person, mobile, online, ATM)
Transfer/wire to others’ accounts
Auto deposits (remote capture) and bill payments
Monthly Bank Statements
Debit Card
Credit Card
Loan
Money order (up to $1000)
Cashier’s check ($1000 +)
Safe Deposit Box
Exchange Foreign Currency
Notary Public
Investment/Financial Advisor

Question 6

Checking Account Benefits (6)

Answer 6

Proof of Payment
Convenience
Debit card
Autopay/deposit
Mobile
Safe—protected up to $250,000 per account (FDIC insured)

Question 7

FDIC

Answer 7

protects the money depositors place in insured banks in the unlikely event of an insured bank failure.

Question 8

Checking Account Fees (4)

Answer 8

Monthly fee
ATM fee
Stop-payment fees
(canceling a check for example)
Overdraft fees

Question 9

Monthly Bank Statement (6)

Answer 9

Deposits
Checks
Online payments
Debit Card transactions
ATM transactions
Additional bank fees

Question 10

Reconcile

Answer 10

does your bank statement balance match your register balance (to catch errors)