Details Title: Depository Institutions Description: All information about Deposiotory Institutions Total Flash Cards: 28 Created: 11/13/2008 14:50:04		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Finance Flashcards
Cards in this set: Term Reasons why individuals use a depository institution? Definition 1.To keep money safe 2.To recieve advantages of intererst earning accounts 3.To have the opportunity to recieve lower cost loan. Term Reasons why individuals may not use a depository institution? Definition 1.Fees to high 2.Minimum balances required are too high 3. They wish to keep their financial information private Term What is Federal Reserve Bank? Definition Part of the central banking system in the United States. Term What does the Federal Reserve Bank do? Definition 1. Collecting checks 2.Electronically transferring funds 3. Distributing and receiving cash and coin Term What is Commercial Bank? Definition Are usually the largest depository institution considered full-service depository institution. Term What is a Credit Union? Definition Non-profit cooperative depository institution owned by members who usually share a common bond. Term What is a savings and loan Association? Definition Focus on providing Loans and Mortages customers must have savings account with them. Term What does FDIC mean? Definition Federal Deposit Insurance Corpoation Term Why is insurance important? Definition the risk of loss Term What does NCUA mean? Definition National Credit Union Administration Term Depositors are insured for up to what amount? Definition $100,000 - Regular Account $250,000 - Retirement Account Term What is Interest? Definition The amount of money that is either gained or lost when accessing services offered by a depositroy instituion. Term What is Interest earning accounts? Definition Money earned from an investment instrument. Term What is Interest Bearing Account? Definition The charge for money that a consumer borrows froma depository institution. Term What is a checking Account? Definition Paper checks or debit cards that are used to withdraw money. Term What are checking accounts called at credit unions? Definition Share draft account Term What is a savings account? Definition An account in which money is typically deposited to earn interest. Term At credit unions a savings account is called? Definition Share Account Term What is stock? Definition Ownership, represented by shares in a corporation Term What is certificate of deposit? Definition An insured interest earning savings instrument with restricted access to the funds Term What is a money market account? Definition An account which offers high interest rates than a savings account and may offer limited check writing privlages Term What is bond? Definition A debt instrument issued by an organization, such as business or the government Term What is a credit card? Definition A card used to make a purchase now and repay later Term What is a loan? Definition Money borrowed and paid back with interest Term What is Mortgage? Definition loan for a home Term What is personal? Definition Interest rates vary depending on type of loan Term What is a safe deposit box? Definition A secured box in a bank to be used for valuable and personal items Term What is Financial Counseling? Definition Information and advice is given to consumers to help make financial decisions