Banking IBT

What is the main purpose of the Federal Reserve System?

The Federal Reserve System was created to supervise and regulate member banks and help banks serve the public efficiently.

What are the types of financial institutions?

Types of financial institutions include commercial banks, savings and loan associations, mutual savings banks, and credit unions.

What are some examples of non-deposit financial institutions?

Examples include life insurance companies, investment companies, consumer finance companies, mortgage companies, check-cashing outlets, and pawnshops.

What factors should be considered when selecting a financial institution?

Factors include services offered, safety, convenience, fees and charges, and restrictions.

What are the main financial services used by consumers?

Main financial services include savings services, payment services, lending services, electronic banking, storage of valuables, investment advice, and management of trusts.

What are three main types of checking accounts?

Regular checking accounts, interest-earning checking accounts, and special checking accounts.

What are common electronic banking services?

Common services include automatic teller machines (ATMs), point-of-sale payments, direct deposit, and automatic bill payments.

What are the three types of endorsements?

Blank endorsement, full endorsement, and restrictive endorsement.

What is the purpose of a check register?

To record all account activities so the account holder knows the account balance and for reconciling with the bank's monthly statement.

What are some reasons for differences between the bank statement balance and a person's check register?

Differences may be due to checks that have not cleared, unrecorded transactions, service charges, deposits not yet processed, interest earned, or incorrect transaction amounts.

How does a certified check differ from a cashier's check?

A certified check is a personal check guaranteed by a bank, while a cashier's check is drawn on the bank's own funds.

What are other types of payments?

Certified checks, cashier's checks, traveler's checks, and money orders.