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Finance Chapter 5
| Term | Definition |
|---|---|
| direct deposit | an automated deposit of a persons net pay to their bank account |
| automated teller machine | (ATM) a machine that allows you to draw money from an account |
| debit card | a cash card that allows you to take money from an account to pay for a purchase |
| point of sale transaction | a purchase by a debit card at a good or service retailer, restaurant, etc. |
| commercial bank | for-profit institution that offers all financial services |
| savings and loan association | financial institution specialized traditionally in savings accounts and mortgage loans |
| credit union | non-profit institution that is owned by members and for their benefit |
| certificate of deposit money market account | savings alternative where money is left on deposit to earn specific rate of return |
| money market account | an account that requires minimum balance and earns interest that varies month to month |
| rate of return | percentage increase in value of savings earned from interest |
| annual percentage yield | amount of interest a hundred dollar deposit would earn for one year |
| overdraft protection | loan made to account if balance will not cover checks written |
| stop-payment order | request that a bank or institution does not cash a check |
| endorsement | signature of payee |
| bank reconciliation | report that accounts for differences between bank statement and checkbook balance |
| compounding | process on which interest is earned on principal and any previously earned interest |