Chapter 5 PF Word Scramble
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Term | Definition |
certificate of deposit | savings alternative in which money is left on deposit for a stated time period (ranging from a month to five or more years) to earn a specific rate of interest |
credit card | A card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. They charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made. |
liquidity | The ability to easily convert financial resources into cash. |
Federal Deposit Insurance Corporation (FDIC) | This is an organization that protects depositors against losing their money in the case of a bank failure. This is an independent agency of the(U.S.) federal government that preserves public confidence in the banking system by insuring deposits. |
credit union | A nonprofit financial institution that is owned by it's members and is organized for it's benefits. |
money market account | A savings account in which interest rate varies as market rates change. |
check | A written order instructing a bank to pay upon its presentation to the person designated in it, or to the person possessing it, a certain sum of money from the account of the person who draws it. |
bank reconciliation | A report that accounts for the differences between a person's bank statement and his or her checkbook balance. |
debit card | A card issued by a financial institution that allows you to withdraw money from your account or pay for purchases by deducting funds directly from your account. |
point of sale transaction | The use of a debit card to purchase an item or service at a retail store, in a restaurant and elsewhere. |
compounding | The process in which interest is earned on both the principal and any previously earned interest. |
annual percentage yield (APY) | The amount of interest that a financial institution would pay on a $100 dollar deposit, after compounding, for one year. |
rate of return | The percentage of increase in the value of savings from earned interest. |
endorsement | The signature of a payee on the back of a check |
commercial bank | A for-profit institution that offers a full range of financial services. |
Savings and loans (S and L) | A financial institution that traditionally specialized in savings accounts and mortgage loans; today they also offer many of the same services that commercial banks provide. |
Automated teller machine (ATMs) | Computer terminals people use to withdraw cash from their bank accounts, make deposits, and transfer money from one account to another; also know as cash machines. |
stop order payment | A request that a financial institution not cash a particular check; financial institution charge a fee for this service. |
US. savings bond | A registered, non-callable, non-transferable bond issued by the U.S. Government, and backed by its full faith and credit. |
over-draft protection | An automatic loan made to you if you write a check for more money than you have in your account. |
interest earning checking account | A cross between checking and savings, these accounts usually pay interest (a very low rate) if you maintain a minimum balance. |
regular checking account | An account that does may or may not require a minimum balance, however, if your account does require a minimum balance and drops below the amount, you will have to pay a monthly service charge. |
mutual savings banks | They specialize in savings accounts and mortgage loans. Some offer personal and automobile loans at lower interest rates. They sometimes offer a higher interest rate on savings accounts. |
direct deposit | Electronic funds that are deposited directly into your bank account rather than through a paper check. |
store valued cards | Pre-paid cards that you can spend for bus or subway fares, school lunches, long distance phone calls, or library fees. |
Created by:
pmarin
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