Essentials Test 1
Checking Account - ANSWER...-money stored in an account at a bank or other financial
institution that can be withdrawn without advanced notice, also called a demand deposit
Savings Account - ANSWER...-account with funds that usually can't be withdrawn
without advanced notice, known as a time deposit
Money Market Accounts - ANSWER...-accounts that offer higher interest rates than
standard bank rates but with greater restrictions
Certificates of Deposit (CDs) - ANSWER...-savings accounts that guarantee a depositor
a set interest rate over a specified interval as long as the funds are not withdrawn
before the end of the period- six months or one year
Credit cards - ANSWER...-means of access to preapproved lines of credit granted by a
bank or finance company
Debit card - ANSWER...-a card that looks like a credit card but works like a check, using
it results in a direct, immediate, electronic payment from the cardholder's checking
account to a merchant or other party
Federal Reserve Board - ANSWER...-an independent agency of the federal government
established in 1913 to regulate the nation's banking and financial industry
Commercial Banks - ANSWER...-the largest and oldest of all financial Institutions,
relying mainly on checking and savings accounts as sources of funds for loans to
businesses and individuals.
Savings and loan associations (S&Ls) - ANSWER...-financial institutions that primarily
offer savings accounts and make long-term loans for residential mortgages; also called
"thrifts"
Credit union - ANSWER...-a financial institution owned and controlled by its depositors,
who usually have a common employer, profession, trade group, or religion
Mutual savings banks - ANSWER...-financial institutions that are similar to savings and
loan associations but, like credit unions, are owned by their depositors.
Federal Deposit Insurance Corporation (FDIC) - ANSWER...-an insurance fund
established in 1933 that insures individual bark accounts
Checking Account - ANSWER...-money stored in an account at a bank or other financial
institution that can be withdrawn without advanced notice, also called a demand deposit
Savings Account - ANSWER...-account with funds that usually can't be withdrawn
without advanced notice, known as a time deposit
Money Market Accounts - ANSWER...-accounts that offer higher interest rates than
standard bank rates but with greater restrictions
Certificates of Deposit (CDs) - ANSWER...-savings accounts that guarantee a depositor
a set interest rate over a specified interval as long as the funds are not withdrawn
before the end of the period- six months or one year
Credit cards - ANSWER...-means of access to preapproved lines of credit granted by a
bank or finance company
Debit card - ANSWER...-a card that looks like a credit card but works like a check, using
it results in a direct, immediate, electronic payment from the cardholder's checking
account to a merchant or other party
Federal Reserve Board - ANSWER...-an independent agency of the federal government
established in 1913 to regulate the nation's banking and financial industry
Commercial Banks - ANSWER...-the largest and oldest of all financial Institutions,
relying mainly on checking and savings accounts as sources of funds for loans to
businesses and individuals.
Savings and loan associations (S&Ls) - ANSWER...-financial institutions that primarily
offer savings accounts and make long-term loans for residential mortgages; also called
"thrifts"
Credit union - ANSWER...-a financial institution owned and controlled by its depositors,
who usually have a common employer, profession, trade group, or religion
Mutual savings banks - ANSWER...-financial institutions that are similar to savings and
loan associations but, like credit unions, are owned by their depositors.
Federal Deposit Insurance Corporation (FDIC) - ANSWER...-an insurance fund
established in 1933 that insures individual bark accounts
