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What is compounding?
The concept of earning interest on interest.
What is the effect of compounding?
Exponential growth of your account balance
What is frequency?
Refers to how often your account balance is compounded
Fill in the following statement: The ... the frequency of compounding, the ... your balance will grow.
Higher, Faster
What does "NSF" mean?
Not Sufficient Funds
When is the term "NSF" used?
When you overdraft and the withdrawal request is denied.
What is minimum balance?
How much you need to keep in your account to avoid additional fees.
What does the term "Maximum number of transactions" mean?
The maximum number of transactions you can do within a cycle.
What is a cycle?
The period of time covered by your bank statement
Commonly, how long is a cycle?
1 month
A physical bank is called a "...."
Brick & Mortar Bank
Complete the statement: Physical banks provide ... interest than ... banks, their ... is terrible, compared to physical banks.
Better, Internet, Customer Service
What are credit unions?
Mutually owned, typically have better rates & better service.
What is a check?
A document used by banks to transfer funds
between accounts.
What is a carbon copy?
A visual duplicate of a check.
What is a bounce?
When the account holder authorizes a transfer from his or her account which exceeds his or her available balance.
What is a cashier's check?
A check issued by a financial institution to provide increased confidence.
What are joint accounts?
Accounts owned by more than one individual.
What are savings accounts?
Accounts which do earn interest on the balance, intended to be stored for a long period of time.
What are checking accounts?
Accounts that are used for daily transactions, & most often do not earn interest on the balance.
What is a register?
The document maintained by the account holder, which lists all transactions.
How does one "reconcile an account"?
The account holder compares the statement with the register.
What is an account number?
A unique number used to identify a specific account within an institution such as a bank.
What is a routing number?
A unique number used to
identify a specific bank (or credit union)
within the banking industry.
What does the phrase "ATM" stand for?
Automatic Teller Machine
What does the phrase "PIN" stand for?
Personal Identification Number
What is a direct deposit?
When funds are deposited into your bank account automatically
What is a deposit slip?
The form you fill out when
using a bank employee
to add funds to your account.
How much will the FDIC insure up to?
$250k
What is a principal?
the amount of money originally
borrowed
What is interest?
the cost of borrowing, as a
percent, of the outstanding balance.
When the account holder removes
funds from the account, it is known
as a ...
Withdrawal
What is a Withdrawal Slip?
The form filled
out by the account holder when
using a bank teller to withdraw
funds from the account.
What is a Restrictive Endorsement?
By writing for deposit only, because funds
cannot be handed to individual cashing the
check, but rather the funds must be deposited
into your account.
When you sign the ... of a check which you
are writing, you are authorizing funds to be
released or withdrawn from your account.
Front
When you sign the ... of a check which was
written to you, you are authorizing funds to be
released from that account to you.
Back
Note 
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