196 Unit 2 Managing Your Finances
Chapter Summary Chapter Summary
Financial institutions aid the fl ow of money in the economy. For consumers
they provide key money management services. These include checking,
savings, and credit accounts. Most institutions also provide online banking,
24-hour ATMs, and other services to make banking more convenient.
A checking account is the fi rst fi nancial service needed by most consumers.
Types of checking accounts include basic, lifeline, and interest-bearing checking
accounts. Each meets different consumer needs. Shop around and ask questions
before choosing a specifi c account and fi nancial institution.
Managing a checking account involves certain basic skills—making deposits,
writing and endorsing checks, and balancing your account each month.
You may also want to look into the variety of other fi nancial services
designed to help consumers manage their money. It pays to shop around for
a fi nancial institution offering the services and personal attention you need.
Review
1. What is the primary function of fi nancial
institutions in the economy?
2. Name and briefl y describe three common
fi nancial institutions serving consumers.
3. Describe an electronic funds transfer
(EFT) and how it relates to your fi nancial
transactions.
4. What are the conveniences of automatic
teller machines (ATMs)?
5. What fi nancial transactions can be
handled with an online account?
6. When might you need overdraft
protection or a stop payment order?
7. List four fees frequently connected with a
checking account.
8. Name and describe the three types of
checking accounts.
9. What is the purpose of endorsing a
check?
10. Name and describe four special-use
checks.
11. If a person prefers to pay for everything
with cash, is a checking account needed?
12. If you had the choice of opening a checking
account in a bank or a credit union, which
would you choose? Explain your reasoning.
13. Describe three smart ways to use and
manage an ATM machine and card.
14. When would a person probably use
a cashier’s check? a certifi ed check?
traveler’s checks?
Critical Thinking Critical Thinking