Chapter 10 - Banking

This is an account that a depositor uses where the bank pays you interest (low amount) for letting it use your money

Match the following

• A financial institution where you may deposit money.

• Bank

• Insurance that protects your account when a bank fails.

• Deposit Insurance

• Access your account by phone

• Interest

• A fee paid for the opportunity to use someone else's money over a period of time.

• Electronic Funds Transfer (EFT)

• The movement of funds by electronic means

• Telephone Banking

Loan is a lending of money that borrowers pay the bank interest (high amount) for money needed, allowing bank to make a profit.

• True

• False

Financial Services Modernization Act (1978) allowed financial institutions to consolidate the financial services they offer, which transformed the banking industry.

• True

• False

Match the following Financial Institutions

• is owned by shareholders and operated for their profit.

• Savings and Loan

• originally specialized in providing funds to home buyers, but now provide a variety of services

• Commercial Banks

• state-chartered & are operated by trustees for the benefit of depositors

• Mutual Savings Banks

• nonprofit and owned by its members of a certain group.

• Credit Unions

• is not maintaining a branch office or employees, therefore passing the savings to customers.

• Internet-Only Banks

A document from the federal or state government that grants them the right to operate within certain legal limitations.

This is a federal agency that insures savings, checking, and other deposit accounts in most commercial banks, saving banks, and saving associations.

A type of deposit insurance for credit unions.

A computer terminal that gives bank customers electronic access to their account at any time through the use of a specially coded card.

A secret code that protects the security of your account