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Banking Test ReviewPersonal FinanceFor a copy of the powerpoint, please visit my teacher website by going to the district page, then the high school page, click on teachers, select Goodwin under the Business section, and then find our class.Vocabulary:blank endorsement – least secure endorsement; just the payee’s signature on the back of the checkcanceled check – check that has been cashed or depositedcertificate of deposit – type of account that pays higher interest than regular savings; has a set time periodcompound interest - earned on both principal and previously earned interestdebit card – bank card that can be used at an ATM or retailersdeposit – putting money into a bank accountFDIC – Federal Deposit Insurance Corporation; insures your deposited money up to $250,000joint account – bank account with more than one ownermoney market – type of account that pays higher interest than a regular savings; high minimum balanceoutstanding check – a check that you wrote and recorded in your register but that has not been cashed or deposited yetoverdraft protection – a way to cover your expenses and avoid going negative (line of credit is one example)postdated check – a check written for a date in the futurerestrictive endorsement – restricts what the payee can do with the check (for deposit only)savings – an account that holds money put aside for future usesimple interest - computed once during a time periodspecial endorsement – transfers ownership of a check to someone other than the payeestop payment – when you lose or have a check stolen, your bank can place this order so that it isn’t cashedwithdrawal – removing money from your checking or savings accountTopics to Review:Types of banks (differences between commercial bank and credit union)Commercial banks are for-profit institutions; credit unions offer similar services but are non-profit and offer benefits to their membersRequirements of a check (5 items)Date, payee, amount in numbers, amount in words, and signature of payerTypes of endorsements (3 different types)Blank (just signature, for cashing or depositing); Restrictive (for deposit only); Special (transfers ownership of check to someone other than payee – Pay to the order of)Examples of savings options (different types and how they compare)Money market- minimum balance; certificate of deposit- set time period; savings bonds- loan to gov’t; IRA- for retirementKnow How To:Fill out a checkAdd items to a checkbook registerReconcile your register to a bank statement ................
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