Finance

Front 1

depository financial institutions

Back 1

majority of financial transaction take place here. commercial banks, savings and loan associations, savings banks and credit unions

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nondepository financial institutions

Back 2

dont accept deposits like traditional banks. credit card issued. stock brokerage firms and mutual funds

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FDIC

Back 3

federal deposit insurance corporation. federally insured up to 250,000.

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demand deposit

Back 4

an account held at a financial instituion from which funds can be withdrawn on demand by the account holder; same as a checking account

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time deposit

Back 5

a savings deposit at a financial instituion; remains on deposit for a longer time than a demand deposit

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cashier's check

Back 6

a check payable to a third party that is drawn by a bank on itself in exchange for the amount specified plus, in most cases a service fee

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CD

Back 7

certificate of deposit. a type of savings instrument issued by certain financial instituions in exchange for a deposit; typically requires a minimum deposit and has a maturity ranging from seven days to seven or more years

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T-Bill

Back 8

US treasury bill. a short term (3-6 months maturity) debt instrument issued at a discount by the US treasury in the ongoing process of funding the national debt

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Series EE bond

Back 9

a savings bond issued in various denominations by the US treasury

Front 10

choosing a car

Back 10

how much afford

test drive

trade or sell your car

choose best way to pay - lease, cash, financing

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PITI

Back 11

principle insuracne taxes insurance. notation that refers to a mortgage payment including stipulated portions of principle, interest, property, taxes and homeowner's insurance

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earnest money deposit

Back 12

money pledged by a buyer to show good faith when making an offer to buy a home

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contingency clause

Back 13

a clause in real estate sales contract that makes the agreement conditional on such factors as the availability of financing, property inspections, or obtaining expert advice

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mortgage loan

Back 14

a loan secured by the property if the borrower defaults the lender has the legal right to liquidate the property to recover the funds it is owed

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mortgage banker

Back 15

a firm that solicits borrowers, originaates primarily government insured and government guaranteed loans, and places them with mortgage lenders; often uses its own money to initially fund mortgages it later resells

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mortgage broker

Back 16

a firm that solicits borrowers, orginates primarily conventional loans, and places them with mortgage lenders; the broker merely takes loan applications and then finds lenders willing to grant the mortgage loans under the desired terms.

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balloon payment mortgage

Back 17

a mortgage with single large principle payment due at a specified future date

Front 18

ARM

Back 18

adjustable rate mortgage. a mortgage on which the rate of interst, and therfore the size of the monthly payment, is adjusted based on market interest rate movements.