CHAPTER 6 – FINANCIAL SERVICE PROVIDERS tsio 1. Copy and fill in the blanks.
a. A ____________ bank is a financial institution that serves individuals and businesses. It is also known as a high-street bank.
b. A ____________ account is a non-interest account that allows the account holder to withdraw money at any time.
c. A debit card allows an account holder to withdraw cash from an ____________ or to transfer money electronically from their account.
d. A ____________ ____________ is an instruction to the bank to pay a fixed amount from an account at regular intervals. A direct debit is an agreement between the bank and account holder that allows a ____________ amount to be taken from an account to pay a bill.
e. A ____________ card gives the holder the option to borrow funds to pay for goods and services up to an agreed limit.
f. There are two rates for foreign exchange: the ‘we buy’ rate and the ‘we ____________’ rate.
g. A ____________ ____________ is a not-for-profit financial service provider that is owned by its members.
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2. List three services that a commercial bank offers to its customers.
3. Outline the features of a current account.
4. What are the advantages of banking online?
5. Explain the difference between a standing order and a direct debit.
6. Explain the difference between a debit card and a credit card.
7. Compare credit unions and commercial banks under the following headings:
• Services offered • Becoming a member/customer.
8. Research the financial services on offer to students from the credit union or one commercial bank and write a brief summary of your findings.
