40 terms

Chp 9 Banking and Financial Services


Terms in this set (...)

Bank check
An order by a depositor on a commercial bank to pay a specified sum on demand to a designated payee or, when the check is endorsed by the payee, to others
Credit union
A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
Commercial bank
A for profit financial institution owned by stockholders; the bank main functions are to accept deposits, lend funds, transfer funds among banks, individuals, and businesses, invest, and make a profit.
Full-service bank
Financial institution that offers all types of services
Personal identification number
Deposit slip
A form prepared for the placement of cash (coins, bills, checks) into a checking account.
Checkbook register
A booklet used to record checking account transactions such as fees, deposits, and withdrawals/payments.
Automated Teller Machine
Automated Teller Machine
A machine/computer that allows a bank customer to make deposits and withdrawals electronically 24 hours a day from his or her bank account.
Bank reconciliation
The process of matching your checkbook register with the bank statement.
Bank statement
Is a monthly report from a bank that shows deposits recorded, checks cleared, other debits and credits and a running bank balance.
Check 21
A federal banking act reduces the need for banks to transport paper checks across the country by allowing for the transfer of checks electronically.
Banks do not return paper checks.
An endorsement consisting only of the endorser's signature.
An endorsement that transfers the right to cash the check to someone else.
Routing number
is a nine digit code, used in the United States, which appears on the bottom of negotiable instruments such as checks to identify the financial institution on which it was drawn.
Account number
The second range of numbers at the bottom of a check tells the bank cashing the check which account to pull the money from.
Check number
Serves as a reference number for your payments.
Restricts or limits the use of a check for example: For deposit only US Bank Acct #123456.
Money market account
A type of savings account that pays a higher interest rate because the financial institution invests the money you deposit.
A person loan that will be cover your checking account payments... even if you have insufficient funds in your checking account
Nonsufficient funds
Electronic Funds Transfer
Electronic Funds Transfer
A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents
Debit card
A card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder's bank account
Credit card
A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
Cleared check or cancelled check
A check that has been honored and processed.
Demand deposit
The money in a checking account.
The person to whom the check is written
The person who paying, writes and signs the check.
Joint account
A bank account when two or more people have a bank account together; sometimes called survivorship account.
Standard checking account
Usually has a small or no monthly service fee and o per check fee.
Safe deposit box
Usually located inside a bank - which is used to store valuables. A safe deposit box is rented from the institution and can be accessed with keys, pin numbers or some other security pass.
Share account
A savings account at a credit union.
Federal Deposit Insurance Corporation: A federal guarantee of savings bank deposits that continues today with a limit of $250,000.
National Credit Union Administration is the independent federal agency created by the United States Congress to regulate, charter, and supervise federal credit unions limits to $250,000
A personal check for which a bank has guaranteed payment.
Cashier check or bank draft
A bank guaranteed check drawn from the bank's funds. When a customer requests a cashier's check, the bank immediately removes the amount from the customer's account and takes responsibility.
Money order
A printed order for payment of a specified sum, issued by a bank, store, check cashing business or post office.
Stop payment
An order by a depositor requesting a bank not to pay on a check previously issued.