Financial Institutions Flashcard

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What is a financial institution?

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A financial institution is an organization that provides financial services, such as accepting deposits, making loans, and offering investment products.

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What is the purpose of checking accounts?

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Checking accounts are used to hold money that can be accessed easily for daily transactions, such as paying bills or making purchases.

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What does it mean to keep money safe in a financial institution?

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It means depositing money in a bank or credit union where it is protected from theft and loss, often insured by government agencies.

Tags

CCSS.RI.6.4

CCSS.RI.7.4

CCSS.RI.5.10

CCSS.RI.4.10

CCSS.RI.8.4

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What is the National Credit Union Share Insurance Fund (NCUSIF)?

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The NCUSIF is a federal fund that insures deposits in federal and most state-chartered credit unions, protecting members' savings.

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What is the maximum amount insured by the NCUSIF per account?

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$250,000.

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What does FDIC stand for?

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FDIC stands for Federal Deposit Insurance Corporation, which insures deposits at banks and savings associations.

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What types of accounts does the FDIC insure?

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The FDIC insures checking accounts, savings accounts, and certificates of deposit (CDs) at member banks.

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What is an emergency fund?

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An emergency fund is money set aside in a liquid account to cover unexpected expenses, such as medical bills or car repairs.

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Why is it important to have an emergency fund?

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An emergency fund provides financial security and peace of mind, helping individuals manage unexpected financial challenges.

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What is a savings account?

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A savings account is a deposit account held at a financial institution that earns interest and is used for saving money.