Banking: How to Manage Your Money – Flashcards
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checking account
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an account that enables its holder to easily transfer money to other
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credit union
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a business that preforms banking services but is owned by its members
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record
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to monitor or track a change
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retail bank
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a bank that provides services to individuals and businesses
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savings account
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an interest-paying account in which money is placed for extended periods
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Which of these is the best reason for Nina to maintain up-to-date and accurate records of her bank accounts?
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to know how much money she has for budgeting
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Where do banks get money to lend to borrowers?
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depositors
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Why is a bank a safe place to put money?
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The Federal Deposit Insurance Corporation (FDIC) insures depositors' money.
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Malcolm has several receipts from recent transactions that he entered in his records. The receipts include an ATM receipt for an $80.00 deposit, a grocery store receipt for $25.50, and a paycheck deposit slip for $650.00. When he finishes entering his transactions, Malcolm realizes that his balance is incorrect. Assuming that Malcolm had no beginning balance, what should his correct balance be?
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$704.50
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Which of these is an advantage unique to checking accounts?
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Checking accounts enable the transfer of money electronically.
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Which of these is a disadvantage of banking with national retail banks?
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They charge fees for many services.
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Alex has not been keeping his banking records up to date. On his latest bank statement, he found that he had been charged an overdraft fee for writing a bad check. In addition to his being charged a fee, which of these is another possible consequence of an overdraft?
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The merchant who received his check will expect repayment and a penalty fee.
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In which situation would a savings bond be the best investment to earn interest?
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saving for home remodeling in six years
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When Seb reconciles his accounts, what is the first step he should take?
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Confirm his records are accurate and include all transactions.
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Glenn and Maggie own a regional chain of juice bars and are looking to expand in the coming year. They already have fifty shops, but they know they will need a loan to reach their goal of one hundred twenty five shops. Which type of banking institution is most suitable for Glenn and Maggie's business?
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a commercial bank
