federal reserve bank
supervises and regulates member banks and helps banks serve the public efficiently
full-service banks
Commercial banks are often called what because they offer a wide range of financial services
credit union
a user-owned, not-for-profit cooperative financial institution
pawnshop
makes loans based on the value of some tangible object, such as jewelry or other valuable items
federal deposit insurance corporation
protects depositors' money in case of the failure of a bank or financial institution it regulatess
electron funds transfer
refers to the use of computers and other technology for banking activities
service charge
a bank charges a fee called a WHAT for handling many checking accounts
regular checking account
If you write only a few checks each month, you should consider a what?
point-of-sale transaction
a merchant accepts a debit card to pay for purchases in a what?
endorsement
written evidence that you received payment or that you transferred your right of receiving payment to someone else
check register
a separate book, usually the same size as your checkbook, in which you can record account activities
stop payment order
a written notice that tells the bank not to pay a certain check
outstanding check
a check that has not been deducted from your bank statement balance
clearing
the paying of checks among different banks in different locations
national banks
What type of banks are required to join the federal reserve system?
they have to have money in reserve
Why do banks lend only a part of the money they receive from customers?
commercial bank
the most common way for a bank to be organized; offer checking accounts, provide savings accounts, make loans to individuals and to businesses, and offer other services
deposit institutions
accept deposits from people and businesses and use them to finance their business
depository intermediaries
What is another name for deposit institutions?
mutual savings bank
a savings bank that is owned by, and operated for, its depositors
savings and home loans
Mutual savings banks are organized mainly for what?
borrow money to build roads, borrow money to buy seeds for crops, deposit cash from business operations, finance a college education, invest for retirement, obtain a mortgage, process credit and transactions, and save for vacation
What are some of the ways individuals, businesses, and governments use banking services?
non-deposit institutions
do not take or hold deposits of money
non-depository intermediaries
What is another name for non-deposit institutions
pawnshops
What are the financial institutions that are most likely to charge the highest rate for a loan?
selling specific services or policies
How do non-deposit institutions earn their money?
consumer finance company
a business that specials in making loans for long-lasting or durable goods, such as cars and refrigerators, and for financial emergencies
99 percent
What percent of banks are FDIC members?
services offered, safety, convenience, fees and charges, and restrictions
To obtain the best value for your financial services dollar, what should you think about?
savings accounts, checking accounts, loans, and other services (safe-deposit boxes)
What are the 4 types of banking services?
safe-deposit box
what banks offer for storage of valuables
you and someone you give permission to
Who can open your safe-deposit box?
regular, interest earning, special, and comparing checking accounts
What are the four types of checking accounts?
share draft
a checking account at a credit union
shareholders
members of a share draft
cash machine
an automatic teller machine (ATM)
you are borrowing money from the bank to pay later
What happens when you use a credit card?
you are using money that is in your account, and the money is directly subtracted from your account
What happens when you use a debit card?
$50; $500
What amount of money do you have to pay if you notify your financial institution that you lost your debit card within 2 days? 60 days
withdraw cash, transfer funds, and paying bills
What are three examples of electronic banking activities?
expanded information related to financial activities, health care, education, careers, travel, and recreation
What is a key element in banking in the future
signature card
document used to verify your signature
joint account
two or more people together in the same account
deposit slip
lists all items you are depositing; filled out when you deposit money into your checking account
blank endorsement
an endorsement that consists of only the endorser's name
full endorsement
endorsement when you write "pay to the order of" followed by the name of the person or business to which the check is being transferred; this is followed by your signature
special endorsement
what is another name for a full endorsement?
restrictive endorsement
limits the use of the check to the purpose given in the endorsement; use the words "for deposit only
drawer
the owner of the account who signs the check (person)
payee
the person to whom the check is written (getting paid)
drawee
the bank or other financial institution that pays the check (bank)
check stub
a form attached to the check by a perforated line
certified check
a personal check for which a bank has guaranteed payment
cashier's check
a check that a bank draws on its own funds
traveler's check
special forms designed for making payments when away from home
money order
a form of payment that orders the issuing agency to pay the amount printed on the form to another party