Personal Finance and Economics Mod 6 Banking – Flashcards
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A register where you list all bank transactions including deposits, checks, debit card purchases, ATM withdrawals, and bank fees.
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Check Register
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An account which allows the holder to write checks against deposited funds.
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Checking Account
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When the bank pays a check you have written and deducts the amount from your account.
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Cleared Check
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Not for profit financial institutution that is owned entirely by it's members.
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Credit Union
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Plastic card used to deduct money from a checking account almost immediately to pay for purchases. Also known as a check card.
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Debit Card
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Contains account holder's information and allows money to be deposited into the correct account.
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Deposit Slip
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money deposited in a bank or some financial institution.
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Deposit
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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.
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Electroni funds transfer (EFT)
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Sign the back of a check authorizing the check to be exchanged for cash or credit.
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Endorse
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Independent agency of the U.S. government that protects customers from the loss of any deposit if the financial institution fails.
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Federal Deposit Insurance Corporation (FDIC
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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.
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Federal Reserve
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a check signed by someone else other then who is specified on the check without that person's permission.
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Forged Check
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Money paid to you by the financial institution when you deposit funds there.
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Interest (savings)
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Currency, coins, checking accounts demand deposits.
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M1 money supply
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M1 savings account and money market account.
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M2 (money supply
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Independent federal agency that supervises fedral credit unions and insures depositor's money in credit unions.
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National Credit Union Administration (NCUA)
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Lack of money in an account to pay a payment.
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Non-sufficient funds (NSF)
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A check that has been written, but not yet received and paid by the bank.
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Outstanding Checks
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Allows you to cover checks or withdrawals up to a specified amount if you have insufficient funds in the account.
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Overdraft Protection
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Person, company, or organization to whom a check is written.
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Payee
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A combination of letters or number that you use to access an account.
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Personal Identification Number (PIN)
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The process of comparing the bank balance and check register so that they show the same amount.
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Reconciling
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Percentage of deposits banks are required to keep in reserves.
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Required reserve ratio
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Limits any further negotionation of the check.
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Restrictive Endorsement
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Only person or company named in the endorsement can transfer the check to someone; transfers the right to cash the check to someone else.
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Special Endorsement
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Check that is more then six months old. it may no longer be honored by the bank.
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Stale Check
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request that a bank not cash or honor a specific check.
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Stop Payment
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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.
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Statement
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To remove money from a bank account.
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Withdrawal
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