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28 Cards in this Set
- Front
- Back
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Checking account |
Bank account which facilities payment by check |
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Direct deposit |
Automatic deposit of income directly into receiver designated bank account. Widely used by employers and government agency |
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Debit card |
Card which allows point of sale payment as electronic transfer of funds from payer bank account to payee at time of sale |
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ATM card |
Card allowing direct access to bank account thru ATM, most often use to access cash without having to go bank housing the account |
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Money market |
Short term liquidity traded |
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Capital market |
Long term liquidity traded |
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Intermediary |
Third party facilitates trade between two party. In financial service, bank is intermediary between lender and borrower |
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Credit union |
retail banking institution that is either depositor- or member-owned.Membership is defined and limited to affiliation with a particular group—for example,state or union employees, or religious or social affiliation. |
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Demand deposit |
accounts from which withdrawals may be made “on demand,” such as achecking account |
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Time deposit |
account from which withdrawals are made over time, or funds that aredeposited for a time |
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Certificates of deposit (CDs) |
A savings instrument requiring a minimum sacrifice of liquidity,either as a minimum deposit amount or a minimum time deposited, in exchange for a higherrate of earnings |
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Money market mutual fund (MMMF) |
A savings instrument invested in the money markets |
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Annual percentage rate (APR) |
The annual rate of interest on credit or debt |
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Installment credit |
A form of credit used to purchase consumer durables, usually issued by onevendor for one item. |
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Default risk |
The risk that a borrower will not be able to meet interest obligations or principalrepayment |
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Revolving credit |
A form of credit used to purchase consumer durables issued by a bank offinance company to purchase many items from many vendors. |
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Charge card |
Revolving credit that must be periodically paid in full |
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Credit card |
Revolving credit that may not be paid in full, creating an interest expense |
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Credit cycle |
The time period for extending and paying credit. |
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Credit rating |
An analysis of personal creditworthiness based on income, current credit anddebt, and credit history. The assessment is done by a credit rating agency that makes the creditreport available to lenders. |
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Credit score |
A numerical score that rates personal creditworthiness in the credit ratingprocess. |
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Identity theft |
A fraud that occurs when the identity is used to access or create accounts forfinancial gain. |
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Grace period |
The time between the purchase date and the date that interest is charged onrevolving credit. |
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Payday loan |
A small, short-term personal loan that charges a high rate of interest. |
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Interest rate risk |
The risk that a bond’s market value will be affected by a change in interestrates. |
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Floating-rate loan |
A loan for which the interest rate can change, usually periodically andrelative to a benchmark rate such as the prime rate. |
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Fixed rate-loan |
A loan for which the interest rate remains constant over the maturity of theloan |
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Prime rate |
A benchmark interest rate understood to be the rate that major banks chargecorporate borrowers with the least default risk. |
