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chapter 5
| Term | Definition |
|---|---|
| Direct Deposit | automatic deposit of net pay to an employee's designated bank account |
| Automated teller machine | a computer terminal that allows a withdrawal of cash from a account |
| debit card | is a cash card that allows you to withdraw money or pay for purchases from your checking or savings account |
| point of scale transcation | a purchase by a debit card of a good or service at a store , restaurant, or elsewhere |
| commercial bank | a for profit institution that offers a full range of financial service including checking, savings, and lending |
| saving and loan association | a financial intuition that specialized in savings account or mortgage loans but now offers many of the same services as commercial banks |
| credit union | a non profit financial institution that is owed by its members and is organized for their benefit |
| certificate of deposit | a saving alternative in which money is left on deposit for a stated period of time to earn a specific rate in return |
| money market account | a saving account that requires a minimum balance and earns and interest that varies month to month |
| rate of return | is the percentage of increase of the value of you savings from earn interest |
| compounding | process in which insert is earned on both on the original amount you deposited and any previously earned interest |
| annual percentage yield | the amount of interest that a 100$ deposit would earn after compounding for a year |
| overdraft protection | the automatic loan made to an account if the balance will not cover checks written |
| stop payment order | a request a bank or other financial institution not cash a particular check |
| endorsement | a signature of the payee a party to whom the check has been written |
| bank reconciliatoin | a report that accounts for the difference between the bank statement and a checkbook balance |