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Foundations Ch 15.2

TermDefinition
Financial Institution Any organization that provides services related to money.
Depository Institution Financial institution that accepts money from customers and deposits it into the customer’s account.
Deposit Money placed into an account.
Credit Union Nonprofit financial institution that is privately owned and provides banking services for its members.
Savings and Loan Institution Financial institution that offers savings and loan services.
Nondepository Institution Financial institution that does not accept deposits.
Securities Firm Financial institution that is involved in trading securities in financial markets.
Investment Bank Financial institution that provides services for businesses.
Financial Company Financial institution that makes money by issuing loans.
Checking Account Bank account that allows the account owner to make deposits, write checks, and withdraw money
Check Written order for the bank to pay a specific amount to the person or organization to which the check is written
Savings Account Bank account used by depositors to accumulate money for future use.
Line of Credit Prearranged amount of credit that is available for a business to use as needed.
Letter of Credit Document guaranteeing that a buyer will pay the seller the agreed-upon amount and within the time specified.
Created by: jboyce
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