Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
BankFinance_Unit3
Bank & Finance Unit 3 - Savings, Loans, & Investments
| Annual Percentage Rate | APR; annual rate of interest |
| Depositor | person who deposits money in a bank or who has a bank account |
| FDIC | a federally sponsored corporation which insures accounts in national banks and other qualified institutions up to $100,000; Federal Deposit Insurance Corporation |
| Interest | the amount of money paid by a customer to a financial institution for borrowing money through a loan, credit card, etc. |
| Required Minimum Balance | least amount required to be kept on deposit in a bank account |
| Credit Score | represents creditworthiness in a person, which is the likelihood he/she will pay debts in a timely manner |
| FICO | Fair Isaac Credit Organization; credit score used by most lenders |
| Big Ticket Purchases | retail goods which have a high selling price in comparison to other items |
| Fixed Rate Interest | interest rate does not fluctuate during the fixed rate period of the loan |
| Adjustable Rate Interest | interest rate may fluctuate up or down during the term of the loan |
| Installments | buyer gains use of the commodity immediately and pays for it in periodic payments |
| Lump Sum | single sum of money which serves as complete payment |
| Collateral | property acceptable as security for a loan or other obligation |
| Application Fee | money paid to the bank or mortgage company to cover expenses of processing a loan application |
| Credit Check | when a potential lender buys a copy of one’s credit history to determine whether or not he/she is someone with the ability and character to repay a debt |
| Net Worth | total assets minus liabilities or debt |
| Stocks | ownership of a corporation indicated by shares which represent a piece of the corporation’s assets and earnings |
| Bonds | debt securities issued by a corporation or unit of government to raise money |
| Portfolio | total holdings of the securities, commercial paper, etc. of a financial institution or private investor |
| Trade | used to describe buying and selling stocks or bonds on the capital market |
| Capital Market | where securities are bought and sold allowing companies and governments to raise long-term funds; where new issues of stocks and bonds are distributed to investors and existing securities are traded |
| Bear Market | a decline in the capital market’s overall value occurs which reflects a substantial drop in the prices of a range of issues over a defined period of time |
| Bull Market | an increase in the capital market’s overall value occurs which reflects an increase in the value of the companies who are represented in the market |
| Personal Savings Account | the best account for transferring monthly money from a new savings account into a personal checking account |
| Certificate of Deposit Account | a type of account that you can invest in where you will not need access to your money for a set amount of time |
| Basic Savings Account | an account with an advantage that allows you to access your money anytime you want |
| FDIC | most basic savings accounts are insured by this institution |
| Minimum Balance | normally required for you to maintain in order to keep your checking/savings account open |
| Service Fees | you usually do not have to pay these if you have the advantage of a checking and savings account at the same bank |
| Online Banking | allows you access to checking and savings account at almost any time |
| Credit Bureaus | institutions responsible for providing your credit score; Equifax, Experian, and TransUnion |
| Credit History | this is gathered from your public record and customer credit information |
| Payment History | this is the most important component of your credit score |
| Loan Application | lenders have you fill this out and they look at your expenses, obligations, income, and credit history and score |
| Loan Payment | this payment targets a specific date to pay off the amount borrowed |
| Principal | known as the amount of money actually borrowed with the loan |
| Cost (Interest) | known as the additional amount of money you will repay to the bank, along with the amount borrowed with the loan |
| Term | known as the length of time you have to pay the loan back in full to the lender |
| Secured Loan | a loan guaranteed with collateral |
| Lump Sum Loan | a loan due in one full payment |
| Installment Loan | requires the borrower to make monthly, or other types of regular payments |
| Line of Credit | known as having a set limit of money which can be borrowed at any one time and interest is only paid on the amount borrowed |
| Upfront Fees | fees that are usually included for application processing, attorney's expertise, and your credit report |
| Investments | contains the three major categories of stocks, bonds, and cash |
| Down Payment | a payment that goes toward the ownership of your new home |
| Homeowner | the party responsible for maintenance and repairs of the home you own |
| Value | homeowners see an increase in this if they maintain their home over time |
| Single Family Home | the best home choice for a couple looking for their first residence in a suburban neighborhood |
| Real Estate | you can “flip” it, use it as rental property, or as your primary residence |
| Taxable Account | you will owe income tax on any interest or returns you earn on your investment, but the principal amount invested is not taxed |
Created by:
Mr.Johnston
Popular Finance sets