Unit 2 L1 Banking

Front

What is FDIC Insurance?

Back

Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business.

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What features are commonly found in mobile banking apps?

Back

Account balance checking, fund transfers, bill payments, transaction history, ATM/branch locator, and mobile check deposit.

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What does 'balance' mean in banking?

Back

The amount of money you have in your bank account.

Front

What is the principal in banking?

Back

Original amount of money saved or invested, separate from interest or earnings.

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What is a money market savings account?

Back

An account similar to a traditional savings account but that typically pays higher interest. It requires a higher minimum balance, and may allow check writing from the account.

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What is the purpose of a savings account?

Back

To save money while earning interest on the deposited funds.

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What is online banking?

Back

A method of banking that allows customers to conduct financial transactions via the internet.

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What is a checking account?

Back

A bank account that allows for numerous withdrawals and deposits, and typically includes a debit card.

Front

What is the difference between a debit card and a credit card?

Back

A debit card withdraws money directly from your bank account, while a credit card allows you to borrow money up to a certain limit.

Front

What is interest?

Back

The cost of borrowing money or the earnings from saving money, usually expressed as a percentage.