Personal Finance Insurance

tgermani's version from 2015-04-13 16:59

Section 1

Question Answer
The length of time you are required to keep your money in the account is known as the term
A savings account which requires you to keep your money in the account for a specific period of time is known as acertificate of deposit
What type of card allows you to purchase something and have the money taken directly from your checking account? A debit card
A checking account is an example of a Demand deposit
The total amount of money in your bank account is called the balance
An electronic banking service which enables you to have your paycheck funds automatically sent to your bank account is known as direct deposit
Savings accounts and certificates of deposit are examples oftime deposits
An electronic banking service which enables you to pay a monthly or other recurring bill automatically is known as an automatic payment
If you report a debit card stolen or lost within ____ days of discovery, you are not liable for unauthorized use. 2
All other things being equal, would you prefer a bank to compound your interest daily, monthly, quarterly, or annually?daily
If you use a debit card to purchase an item or service, that is known as a(n) ______________ transactionpoint of sale
The amount of money your bank account earns depends on Type of account, Balance in the account, or Interest rate
A prepaid card that you can spend for college books, bus/subway fares, school lunches, long distance telephone calls or similar services is known as a(n) _________________ card. a stored value card
If you don’t report a debit card as stolen or lost within ____ days, you are liable for ALL unauthorized uses. sixty
The Federal Deposit Insurance Corp (FDIC) insure bank deposits for up to $______ per account. $250,000

Section 2

Question Answer
The type of financial institution that offers the broadest range of services to businesses and individuals is known as a _____________.commercial bank
Name the two types of financial institutions that offers a broad range of banking services, but tends to specialize in savings accounts and mortgage loans.Savings and loan associations, and Mutual savings banks
This type of financial institution is a not-for-profit organization that is owned by and serves only its members such as a labor union
This booklet where you write all your checking account entries is known as a(n) ______________.check register
This type of financial institution specializes in loans to consumers and small businesses that are higher risk or have low income/few assets.Finance company
This type of financial institution specializes in loans to purchase homes, and does not usually offer deposit company
Name three things you should consider when comparing financial institutions.Favorable interest rates Free or low cost checking Will it loan me money Is it FDIC or SAIF insured Convenient locations Other services
The type of savings account that allows to make deposits or withdrawals whenever you want and pays a fixed rate of interest is known as a(n) _________.regular savings account
Name two types of errors that you can discover when you do a monthly reconciliation of your checking account.You forgot to enter a transaction You made a calculation error Your bank made a calculation error Your bank (over)charged for some service
The type of savings account in which the interest rate varies from month to month is known as a(n) market account
The percent of increase in the value of your savings from earned interest is known as the __________.rate of return
The process of earning interest on both the principal and also on any prior interest earned is known as _______.compounding
The term for the amount of interest that a $100 deposit would earn after compounding for one year is known as _______.annual percentage yield
Name two things you should consider when opening a checking account.Restrictions such as a minimum balances Fees and charges Favorable interest rates Special services
A service in which your bank either loans you money or automatically transfers money to your checking account if you do not have sufficient funds to cover your check is known as ___________.overdraft protection
If you want your bank to not pay a particular check you wrote, you would issue a(n) ___________.stop payment order
The type of endorsement where you can only deposit the money in your account since you wrote “For Deposit Only” above your signature is known as a(n) ________.restrictive endorsement
The person or company to whom you make your check out to is known as the _________.Payee

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