BANKING - W!se Financial Literacy Certification Questions with Complete Solutions, A+

ABA number/Check Routing Number - the number printed on a check to identify the specific bank on which the check is drawn ATM card - A payment type similar to a debit card that allows you to make electronic purchases but requires that you enter a PIN (Personal Identification Number) for any transaction. Automatic bill payment services - A money transfer scheduled on a predetermined date to pay a recurring bill. bounced check - a check that is not honored by a bank and is returned to the payee's bank due to nonsufficient funds cashier's check - A check signed by the bank with payment guaranteed by the bank - drawn against the bank's fund and not the money in your personal checking account Certificate of Deposit - a savings certificate that gains interest and has a set time before you can withdraw your money certified check - A check for which the bank assures that the drawer has sufficient funds to make payment. Money drawn directly against your personal checking account check cashing centers - company that will cash a check for a fee. Banks also cash checks, and some do so at no cost to the consumer, especially if he or she has an account at the bank or uses direct deposit. Check cashing fee - Amount of money charged if a person cashes their check anywhere except their own bank Check Fraud - A check or another negotiable instrument that has been materially and maliciously altered to effect a fraud. Usually either the name of the payee or the amount of the check is changed. (altered check) check number - A number identifies each personal check, found at the top right of a personal check that identifies that specific check. Check Register - Record of all deposits to and withdrawals from a checking account. check stub - A source document that lists the same information that appears on a check and shows the balance in the checking account before and after each check is written. Checking account number - The a number assigned by a financial institution to identify a specific checking account. Collateralized Loan - A loan that is secured by collateral, properties or assets that are subject to seizure on default. commercial bank - A financial institution that accepts demand deposits and makes loans and provides other services for the public Credit Union - A nonprofit financial institution that is owned by its members and organized for their benefit. Depositor - a person or business that has cash on deposit in a bank direct deposit - An automatic deposit of a paycheck without having to take a physical check to the bank. endorse - to sign the back of a check before cashing or depositing it endorsement - A signature or stamp on the back of a check transferring ownership FDIC - Federal Deposit Insurance Corporation: A federal guarantee of savings bank deposits initially of up to $2500, raised to $5000 in 1934, and frequently thereafter; continues today with a limit of $100,000 financial intermediaries - firms, such as banks, mutual funds, pension funds, and insurance companies, that borrow funds from savers and lend them to borrowers