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unit 3
| Term | Definition |
|---|---|
| Annual Percentage Rate | APR; annual rate of interest |
| Depositor | person who deposits money in a bank or who has a bank account |
| FDIC | Federal Deposit Insurance Corporation; a federally sponsored corporation which insures accounts in national banks and other qualified institutions up to $100,000 |
| Interest | amount of money paid to a customer for money on deposit with a financial institution, or 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 | numerical expression based on a statistical analysis of a person’s credit files; represents creditworthiness in a person, which is the likelihood he/she will pay debts in a timely manner; primarily based on credit report information from credit bureaus |
| 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 |
Created by:
IAN STELTER3340
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