Financial Planning I - Objective 2.03

Hannah works part time at Zaxby's. She needs a safe place to store her income that allows her to withdraw money easily and frequently. Hannah should consider opening which type of account?

• Checking

• Savings

• Health savings

• IRA

Proofing, econding, and sorting are all steps in which banking process?

• consumer lending

• check payment

• cash management

The direction of a client's cash and securities by a financial services company, usually an investment bank, or an individual is known as:

• a vendor lease

• asset management

• a lockbox

What type of service does a bank provide to a business that needs to borrow funds for a short period of time?

• mortgage

• installment loan

• line of credit

What type of service might a bank provide business that needs the flexibility to borrow different amounts of money at different times without having to reapply?

• mortgage

• line of credit

A service that a bank provides to a company for the receipt of customers' payments, which are directed to a special post office box instead of directly to the company, is referred to as a/an:

• lockbox

• private placement

Which type of protection ensures that a check, ATM, wire transfer, or debit card transaction will clear if the account balance falls below zero?

• asset

• liability

• overdraft

The electronic clearance and settlement used for financial transactions by U.S. commercial banks and other institutions is called the:

• Federal Reserve System (FRS)

• automated clearing house (ACH)