PBMF Chapter 17: Banking and Financial Services

State banks may not join the Federal Reserve System.

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Savings and loan associations traditionally specialized in making loans for home mortgages.

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Clearing refers to the process of making payments among different banks.

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Stored-value cards allow you to use money that is in your checking account.

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Only you or the bank has the right to open your safe-deposit box.

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An interest-earning checking account is probably the best choice for people who write only a few checks each month.

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A commercial bank often is called a full-service bank.

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Sometimes two or more people have a checking account together, called a joint account.

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The owner of the account who signs the check is the drawer.

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A signature card is a written notice that tells the bank not to pay a certain check.

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