Economics Module 6 Vocab
Terms in this set (34)
Automatic Teller Machine (ATM)
Specialized computer used by bank customers to handle their money (Get cash, make deposits, check balances).
A check written against an account with insufficient funds to cover it.
A financial institution that handles money, including keeping it for saving commercial purposes; a for profit company that is owned by investors.
Check that can be further endorsed.
A written order instructing the bank to pay a certain amount of money to another person or place; must contain date, payee, amount, and signature.
A register where you list all bank transactions including deposits, checks, debit card purchases, ATM withdrawals, and bank fees.
An account which allows the holder to write checks against deposited funds.
When the bank pays a check you have written and deducts the amount from your account.
Not for profit financial institution that is owned entirely by its members.
Plastic card used to deduct money from a checking account almost immediately to pay for purchases; looks like and is treated like a credit card; however, the amount of purchase is subtracted from the user's account; also known as a check card.
Contains account holder's information and allows money to be deposited into the correct amount.
Money deposited in a bank or some financial institution.
Electronic Funds Transfer (EFT)
Uses a computer-based system that enables you to transfer money from one account to another in lieu of writing a check or exchanging cash.
Sign the back of a check authorizing the check to be exchanged for cash or credit.
Federal Deposit Insurance Corporation (FDIC)
Independent agency of the U.S. government that protects the customers from the loss of any deposit if the financial institution fails.
The central banking system in the United States which consists of the twelve regional banks, the Federal Reserve Board, and the Federal Open Market Committee.
A check signed by someone else other who is specified on the check without that person's permission.
Amount of money paid by a borrower to a lender in exchange for the use of money that has been loaned.
Currency + Coins + Checking Accounts (Demand Deposits)
M1 + Savings Account + Money Market Accounts
National Credit Union Administration (NCUA)
Independent federal agency that supervises federal credit unions and insures depositor's money in credit unions.
Non-sufficient Funds (NSF)
Lack of money in an account to pay a payment.
A check that has been written, but not yet received and paid by the bank.
Allows you to cover checks or withdrawals up to a specified amount if you insufficient funds in the account.
Person, company, or organization to whom a check is written.
Personal Identification Number (PIN)
A combination of letters or number that you use to access an account.
The process of comparing the bank balance and check register so that they show the same amounts.
Required Reserve Ratio
Percentage of deposits banks are required to keep in reserves.
Limits any further negotiation of the check.
A firm that is owned and operated by one person.
Check that is more than six months old. It may no longer be honored by the bank.
Request that a bank not cash or honor a specific check.
Monthly document sent by the financial institution that lists your account balance at the beginning of the period and the end of the period; includes checks, deposits, deductions, and fees.
To remove money from a bank account.