Exercise 8. Discuss the following questions.

Part I

1. What functions does a modern bank perform?

2. What accounts are called deposits?

3. What categories of deposit accounts are there in the USA?

4. What are the key features of a transaction account? What is its major function?

5. What are the two types of transaction accounts? Characterize each of them.

6. What is the function of savings accounts?

7. How is the customer’s savings account usually debited in case he/she is a current account holder in the same bank?

8. What are the characteristics of a time deposit? Is it automatically renewable?

9. Do the holders of CDs pay any penalty is they withdraw their money before the maturity?

10. What are the two ways of borrowing?

11. What does an overdraft on current account mean?

12. What is a loan?

13. How can a loan be repaid?

14. What are the two categories of loans?

15. How are business loans classified?

16. How do short-term and long-term loans differ?

17. What is a line of credit? What differs a closed-end line of credit from an open-end line of credit?

18. What are the types of consumer loans? Characterize each of them.

19. What other recipients of loans are known to you?

Part II

20. What is check clearing?

21. What do electronic transactions allow for?

22. What do electronic banking services include?

23. What is a remote terminal? What types of the remote terminals are you familiar with? How much is it safe to use ATMs?

24. What is a POS? How is the transaction authorized?

25. What is a safe deposit box aimed at? How much are they secure?

26. How does the bank provide a cash management function?

27. What services do bank trust divisions provide?

28. How do the banks perform the function of trustees under indenture?

29. How do the banks contribute to the functioning of the commercial paper market?

30. What do the banks issue letters of credit for?

31. What other products and services do banks provide?

Exercise 9. Choose the correct alternative.

 

Open an account with Grimleys Bank, and start benefiting from our great rates / levels of interest and small / low charges. With over 3,000 branches / outlets, you'll never be far from us, and unlike many other high street / town centre banks, we're open all day on Saturdays.

Grimleys customers can take money / make withdrawals from more than a million cash dispensers / money machines worldwide, and of course you'll receive a cheque book / book of cheques and a paying card / debit card within a few days of opening your account. Computer-users may be interested in our e-account - all the benefits of a regular Grimley's current / day-to-day account, with the added convenience of being able to view your lists / statements and make / do payments online.

Whether you're opening your first current account, switching / changing from another bank or simply want to take advantage of our range / variety of savings accounts, you'll be glad you chose Grimleys – the bank that always makes / puts the customer first.