Banking and Finance – Final Exam Review, 2026 – Comprehensive
Study Material
banks - ANS✔✔ financial institutions that accept deposits and make loans
credit unions - ANS✔✔ financial institutions that are not-for-profit, member-owned
cooperatives that offer deposit accounts and lending services to consumers and small
businesses
savings and loan associations - ANS✔✔ financial institution that accepts deposits and lends
funds
electronic banking (Electronic Fund Transfer or EFT) - ANS✔✔ uses computer and electronic
technology as a substitute for checks and other paper transactions
direct deposit - ANS✔✔ automatic deposit of net pay to bank accounts; safe transfer; authorize
employer to do so; funds go directly to checking or savings
automatic payments - ANS✔✔ with authorization, banks with withdraw an amount of monthly
payments or bills from your account
credit cards - ANS✔✔ "buy now, pay later"; can be used to purchase goods and services as long
as bill is paid; interest charges, fees, and penalties may apply if bill is not paid each month
point-of-sale transactions - ANS✔✔ a purchase by a debit card of a good or service at a retail
store, restaurant, or elsewhere
Federal Deposit Insurance Corporation (FDIC) - ANS✔✔ created to protect deposits in banks,
insures up to $250,000; administers Savings Associations Insurance Fund (SAIF) for savings and
Study Material
banks - ANS✔✔ financial institutions that accept deposits and make loans
credit unions - ANS✔✔ financial institutions that are not-for-profit, member-owned
cooperatives that offer deposit accounts and lending services to consumers and small
businesses
savings and loan associations - ANS✔✔ financial institution that accepts deposits and lends
funds
electronic banking (Electronic Fund Transfer or EFT) - ANS✔✔ uses computer and electronic
technology as a substitute for checks and other paper transactions
direct deposit - ANS✔✔ automatic deposit of net pay to bank accounts; safe transfer; authorize
employer to do so; funds go directly to checking or savings
automatic payments - ANS✔✔ with authorization, banks with withdraw an amount of monthly
payments or bills from your account
credit cards - ANS✔✔ "buy now, pay later"; can be used to purchase goods and services as long
as bill is paid; interest charges, fees, and penalties may apply if bill is not paid each month
point-of-sale transactions - ANS✔✔ a purchase by a debit card of a good or service at a retail
store, restaurant, or elsewhere
Federal Deposit Insurance Corporation (FDIC) - ANS✔✔ created to protect deposits in banks,
insures up to $250,000; administers Savings Associations Insurance Fund (SAIF) for savings and
