Banking Procedures Chapter 29 admin practice

Deposit

Money (cash or checks) put into an account, increasing the account balance.

Withdrawal

The act of removing money from an account, decreasing the account balance.

Online Banking

Performing banking transactions using the Internet.

Mobile Banking

Banking transactions carried out through a mobile device like a smartphone or tablet.

ATM (Automated Teller Machine)

A banking machine for performing transactions such as deposits and withdrawals using a card and PIN.

Checking Account

A bank account allowing deposits and frequent transactions for day-to-day expenses.

Savings Account

A bank account used to earn interest on stored funds.

Overdraft Protection

A service that links accounts to avoid overdraft fees by transferring funds automatically.

Currency

Cash, including coins and paper bills, used in society.

Endorsement

The payee’s signature on the back of a check required for cashing or depositing.

Cashier's Check

A check guaranteed by the bank, issued on the bank's own account.

Certified Check

A personal check guaranteed by the bank, certifying that the funds are available.

Electronic Check

A check paid directly from a checking account through the internet.

Cryptocurrency

A digital currency secured by cryptography, such as Bitcoin.

Key Components of a Check

Date, Payee, Numeric Amount, Written Amount, Drawee, Signature.

Reconciling a Bank Statement

The process of confirming and adjusting discrepancies between bank records and personal records.

Deposit Slip

An itemized list of cash and checks placed into a checking account.

Electronic Fund Transfer (EFT)

A method of crediting or debiting accounts electronically, without checks.

Stop Payment

An instruction to the bank to refuse payment for a specific check.

Order Quantity (OQ)

The optimal amount purchased per order, balancing price and storage limits.

Reorder Point (ROP)

The minimum quantity that triggers a reorder of supplies.