Money & Banking Flashcard 1

Front

What is the difference in a bank and a credit union?

Back

Credit unions are member owned.

Front

Which business charges large fees to cash payroll and government checks to people who do not have a bank account?

Back

Check Cashing Centers

Front

What is money placed in a checking account called?

Back

Demand deposits

Front

Which financial service is best suited for saving money over a set amount of time (and has penalties for early withdrawals)? Options: Certificate of Deposit, Checking Account, Savings Account, Stocks

Back

Certificate of Deposit

Front

When writing a check, it is a good idea to use

Back

blue or black ink pen

Front

When a bank accepts your money, what do they do with it?

Back

They loan most of it out to people who need money for cars and homes, etc.

Front

How does the FDIC help prevent a bank from failing?

Back

They insure the deposits in the bank so people are not as likely to take all their money out at once.

Front

Harry wants to save money in a bank account. He decides to open a _______________ account with a five-year maturity date because it offers a _________________ than a savings account does.

Back

CD; higher interest rate

Front

An account you can deposit money into and then write checks or use debit card to withdraw money is known as a ____________________.

Back

Checking

Front

What institution is most profit driven?

Back

Banks