Financial Institutions, Lecture Notes, 2026 – Study Material and
Practice Questions
Pre-authorized debits - correct answer ✔✔ This service allows billers to withdraw money from
your bank account when a payment is due. You may want to use this service for insurance
premium payments.
Online banking - correct answer ✔✔ This service allows you to access your accounts and make
transactions on the Internet (using either a computer or a mobile device).
Deposit insurance - correct answer ✔✔ This service protects your savings if your financial
institution fails. You don't have to apply or pay for this service. It covers savings and chequing
accounts, GICs and other term deposits, and foreign currency.
ABMs/ATMs - correct answer ✔✔ These machines allow you to complete transactions without
the need to see a bank teller.
Debit card - correct answer ✔✔ A card that you can use to pay for goods and services, or
withdraw money, directly from your bank account.
Telephone banking - correct answer ✔✔ This service allows you to access your accounts and
make transactions over the phone.
Interac e-Transfer - correct answer ✔✔ This service allows you to send money directly and
securely from your bank account.
Direct deposit - correct answer ✔✔ This service allows a payer to deposit money directly into
your bank account.
Practice Questions
Pre-authorized debits - correct answer ✔✔ This service allows billers to withdraw money from
your bank account when a payment is due. You may want to use this service for insurance
premium payments.
Online banking - correct answer ✔✔ This service allows you to access your accounts and make
transactions on the Internet (using either a computer or a mobile device).
Deposit insurance - correct answer ✔✔ This service protects your savings if your financial
institution fails. You don't have to apply or pay for this service. It covers savings and chequing
accounts, GICs and other term deposits, and foreign currency.
ABMs/ATMs - correct answer ✔✔ These machines allow you to complete transactions without
the need to see a bank teller.
Debit card - correct answer ✔✔ A card that you can use to pay for goods and services, or
withdraw money, directly from your bank account.
Telephone banking - correct answer ✔✔ This service allows you to access your accounts and
make transactions over the phone.
Interac e-Transfer - correct answer ✔✔ This service allows you to send money directly and
securely from your bank account.
Direct deposit - correct answer ✔✔ This service allows a payer to deposit money directly into
your bank account.
