Unit 2: Banking Terms

The central bank of the United States:

• Federal Reserve System

• Mutual Savings Bank

• Money Market

• Money Order

State-chartered financial institutions operated by trustees for the benefit of depositors

• Commercial Bank

• Mutual Savings Bank

• Savings & Loans

• Credit Union

An interest-bearing account that typically pays a higher interest rate than a savings account, and which provides the account holder with limited check-writing ability

• Federal Reserve System

• Mutual Savings Bank

• Money Market

• Money Order

A purchased certificate used to pay a specified amount to a particular payee

• Cashier's Check

• Certified Check

• Personal Check

• Money Order

A personal check that the bank guarantees or certifies to be good

• Cashier's Check

• Certified Check

• Personal Check

• Money Order

A check issued and guaranteed by a bank

• Cashier's Check

• Certified Check

• Personal Check

• Money Order

Financial institutions owned by shareholders and operated for their profit

• Commercial Banks

• Mutual Savings Bank

• Savings & Loans

• Credit Union

Financial institutions that originally specialized in providing funds to home buyers, but now provide a variety of financial services.

• Commercial Bank

• Mutual Savings Bank

• Savings & Loans

• Credit Union

A nonprofit financial institution that is owned by its members and organized for their benefit

• Commercial Bank

• Mutual Savings Bank

• Savings & Loans

• Credit Union

An account at a bank against which checks can be drawn by the account depositor

• Checking

• Savings

• Credit

• Checkbook