Discuss Deposit Insurance that is eligible for Savings banks, Savings and Loan Associations, Commercial banks, and Credi

Chapter 4 Assignment

1.       Discuss Deposit Insurance that is eligible for Savings banks, Savings and Loan Associations, Commercial banks, and Credit Unions  —what it is for—what it does—what the current amount is—how much did it used to be?

2.       Discuss debit cards vs. credit cards—give pros and cons of each.

3.       Discuss the pros and cons associated with low interest rates.

4.       Discuss as many services as you can that a bank might make available to their customers.

5.       What type of financial instruments do you or would you like to use for short term savings?

6.       What is the difference between Series EE bonds and I bonds?

7.       Bank reconciliation: you have the checkbook balance and the monthly bank statement balance. Why do you need to do a bank reconciliation?

Bank Statement Balance                                                Checkbook Balance

0.     Example: Bank assessed an overdraft fee on your account         -$35

You would record:

0.     Checkbook balance, -$35  (because it is already deducted from the bank statement)

Now you record what statement and if you would add or subtract from that statement. On the example the overdraft fee is already deducted from that statement. You would now have to bring your checkbook balance up-to-date.

8.       Outstanding checks

9.       Deposits in transit

10.   Service charge by the bank

11.   Error that YOU made in your checkbook register, you recorded a $50 deposit as a $500 deposit (OUCH!!)

12.   Error that you made on a check—you recorded a check as $29 and it should have been $19

13.   Automatic payment on your electricity bill that you forgot to record.

14.   Interest earned on your account.