Banks and Banking Flashcard

Front

An account balance shows ______.

Back

the amount of money that you have in an account

Answer explanation

An account balance shows the amount of money that you have in an account.

Front

Why would you possibly not be able to use a check that you just deposited in a checking account?

Back

The deposit is still pending.

Answer explanation

You may not be able to use a check that you just deposited because the transaction may still be pending.

Front

Which balance shows the amount of money you can use now?

Back

Available balance

Answer explanation

Your available balance is what you can use since it subtracts any pending transactions that haven't been processed yet from your current balance

Front

Why do current and available balances sometimes show different amounts of money in the same account?

Back

Available balances subtract pending transactions from the current balance.

Answer explanation

Current and available balances sometimes show different amounts of money in the same account because available balances subtract pending transactions.

Front

What is it called when someone doesn’t have enough money in an account to cover a charge?

Back

Insufficient funds

Answer explanation

When someone doesn't have enough money in an account to cover a charge, they have insufficient funds.

Front

Financial institutions charge a fee for an overdrawn account because _________________________.

Back

you have spent more money than you had in an account

Answer explanation

Financial institutions charge a fee for an overdrawn account because you have spent more money than you had in an account.

Front

A savings account that is insured by the FDIC/NCUA means ____________________.

Back

the money is protected by the government

Answer explanation

A savings account that is insured by the FDIC/NCUA means the money is protected by the government.

Front

How can you check your account balance?

Back

Call your financial institution directly, Log in to your account online, Download and use your financial institution’s app.

Answer explanation

You can check an account balance at a financial institution by calling, going online and using your financial institution's mobile app.

Front

What type of account is used to pay for daily expenses?

Back

Checking account

Answer explanation

A checking account is used to pay for daily expenses.

Front

What is one benefit of a savings account?

Back

Earning interest on deposits

Answer explanation

A benefit of a savings account is that it earns interest.