Retake MP2 Flashcard 2 Checking account

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What is a checking account?

Back

A checking account is a type of bank account that allows you to deposit money, withdraw funds, and write checks.

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What does it mean to make a deposit?

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A deposit is the act of adding money to a bank account.

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What is a withdrawal?

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A withdrawal is the act of taking money out of a bank account.

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What is an ATM?

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An ATM (Automated Teller Machine) is a machine that allows you to perform banking transactions, such as withdrawing cash or checking your balance.

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What is an annual fee in a checking account?

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An annual fee is a charge that a bank may impose each year for maintaining a checking account.

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How do you calculate the balance after a transaction?

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To calculate the balance, add deposits and subtract withdrawals from the previous balance.

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What is a check register?

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A check register is a record of all transactions made in a checking account, including deposits, withdrawals, and checks written.

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What does it mean for a check to clear?

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When a check clears, it means the funds have been transferred from the payer's account to the payee's account.

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What is an ATM fee?

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An ATM fee is a charge that may be applied for using an ATM, especially if it is not owned by your bank.

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

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