Banking – Chapter 5 Review
Personal Finance
Identify 3 types of financial services.
List 3 pros and 3 cons of the following:
Direct Deposit
Automatic Payments
Automated Teller Machines (ATM)
Provide an overview of the FDIC.
Describe the four types of deposit-type institutions:
Commercial Banks
Savings and Loan Associations
Mutual Savings Banks
Credit Unions
Name:
Describe the four types of nondeposit-type institutions:
Life Insurance Companies
Investment Companies
Finance Companies
Mortgage Companies
Complete the following table in regards to the benefits and draw backs of savings plans:
Type of Account
Regular Savings Accounts
Certificates of Deposit (CD)
Money Market Accounts
US Savings Bonds
Define the following terms:
Rate of Return
Compounding
Annual Percentage Yield
Benefits
Drawbacks
Compare and contrast the three types of checking accounts:
Regular Checking Accounts
Activity Accounts
Interest-Earning Accounts
Identify and describe four elements that affect checking accounts:
1.
2.
3.
4.
List the 6 steps in correctly writing a check and write check #101 to Abbotsford School District for
$106.23.
1.
2.
3.
4.
5.
6.
Provide 5 tips when making deposits into your checking account:
1.
2.
3.
4.
5.
Define the following terms:
Stop-Payment Order
Endorsement
Bank Reconciliation
List the 4 steps involved in reconciling your checking account:
1.
2.
3.
4.
Describe how a Certificate of Deposit works: