Banking Vocabulary

What is an Overdraft Fee?

• A reward for maintaining a positive account balance

• A fee for withdrawing more money than the account holds

• A fee for depositing money into an account

• A charge for closing an account

What is the purpose of Direct Deposit?

• To automatically transfer funds from one bank account to another

• To check your bank balance online

• To manually deposit checks at a bank

• To withdraw cash from an ATM

What is the purpose of a Check Register?

• To verify the authenticity of a check

• To register for a new checkbook

• To log and track personal checks written

• To apply for a checking account

What is the primary use of a Debit Card?

• To save digital coupons

• To borrow money from the bank

• To earn rewards points

• To withdraw money from your checking account

What does FDIC Insurance guarantee?

• Investment returns

• Safety of deposits in member banks

• Approval of loan applications

• Interest rates on savings accounts

What is a Certificate of Deposit?

• A check that has been returned due to insufficient funds

• A credit card with unlimited spending

• A document proving ownership of a house

• A type of savings account with a fixed interest rate and fixed date of withdrawal

What is an Outstanding Check?

• A check written for more than the account balance

• A check that earns interest

• A check that has been lost

• A check that has not yet been cashed or deposited

What does the term 'Balance' refer to in banking?

• The interest earned on an account

• The amount of money currently in an account

• The difference between deposits and withdrawals

• The weight of coins in a deposit

What is a Bank Statement?

• A document outlining loan terms

• A list of recent transactions in an account

• A declaration of bank profits

• A customer's credit score report

How does a Credit Card differ from a Debit Card?

• A Debit Card has no spending limit

• A Debit Card allows you to earn interest on purchases

• A Credit Card borrows money from the bank to be repaid later

• A Credit Card allows you to spend your own money