29 terms

Banking

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Money Market Account (MMA)
This will allow you to write a limited # of checks & have varying interest rates (usually higher than a basic checking account).
Money Order
A written order for the payment of a sum to a named individual; obtainable and payable at a bank, post office, or convenient store. For a fee usually $.99-$5 usually smaller amounts of $. Less than $1,000.
Electronic Funds Transfer (EFT)
A way to pay bills online & have paychecks deposited directly into your account.
Stop Payment Order
A request that a bank or other financial institution not cash a particular check is a(n)___.
Debit Card
This allows you to withdraw money or pay for purchases from your checking acct.
Cashier's Check
A check drawn by a bank (for a fee) on its own funds and signed by the bank's cashier. Guaranteed funds (larger amounts).
Savings Bond
A ___________ is an IOU, a promise to pay you at a later date with interest. Deposits must be held for a certain length of time. The least liquid savings tool.
Personal Check
This is a written order to a financial institution directing the financial institution to pay stated amount of money, from the customer's account.
Bank
A ___________ is a for-profit organization owned by stockholders and run by a paid board of directors. If offers a wide variety of services to anyone.
Bank Reconciliation
A report that accounts for the differences between the bank statement and a checkbook balance is called a(n)___________ . You complete the report to check for errors.
Credit Card
A card allowing you to borrow money & agreeing to pay it back. (Buy now, pay later.)
Liquidity
This describes the degree to which an asset can be converted to cash while maintaining value.
Endorsement
The signature of the payee, the party to whom the check has been written. This allows the bank to process the check in the manner in which it is signed.
Traveler's Checks
_______ are internationally redeemable & can be replaced if lost or stolen. You would want to pick them up at a financial institution before leaving the country.
Overdraft Protection
A service which provides a short-term loan to cover checks written for more than the customer has in their account. Many times you have to opt in for this
Certificate of Deposit (CD)
A ___________ is a like a long term savings account that earns you slightly more interest, but is less liquid than a traditional savings account. (A timed deposit.)
ATM
A(n) _______ allows you to make deposits & withdraws outside of normal banking hours.
PIN #
This is a passcode you use to get access to your savings and/or checking account. Often used with a debit card or ATM.
FDIC
When choosing a commercial bank, you should make sure your money is protected by this.
NCUA
When choosing a credit union, you should make sure your money is protected by this.
Credit Union
A(n) ______ is a nonprofit financial institution that is owned by its members.
Date
Date check is written
Check #
Check # preprinted on check
Recipient Name
who you are writing the check to
Amount of check written as numerals
Amount of check written as numerals
Amount of Check written in words
amount of check in words
Memo (reason for check)
reason for check
Signature of account holder
Where account holder signs check
Routing Number & Account Number
Routing (7) & Account numbers (8) to be read by computers