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41 Cards in this Set
- Front
- Back
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what are some common mistakes made when managing current cash need?
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-overspending
-having insufficient liquid assets -using saving or borrowing -failing to put unneeded funds in an interest-earning saving account |
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What are the types of financial services?
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-Savings
-Payment Services -Borrowing -other financial services like a trust |
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What is a trust?
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A legal agreement that provides for the management and control of assets by one party for the benefit of another
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What are most commonly referred to as "time deposits"?
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Savings
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What are also known as "demand deposits"?
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Payment services
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Asset management accounts are also known as "___________"
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Cash management account
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What does ATM stand for ??? also what is it also called?
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Automatic Teller Machine... Cash Machine
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what is a debit card?
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a plastic access card used in computerized banking transactions.. also known as cash card!
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what is low liquidity?
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the inability to obtain your money quickly
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what do u do when interest rates start rising?
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-use long term loans
-short term savings |
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what do u do when interest rates start falling?
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- use short term loans
- long term savings |
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What is a commercial bank?
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A financial institution that offers a full range of service to individuals, businesses and government agencies.
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What is saving and loan associations?
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A financial institution that traditionally specialized in saving accounts and mortgage loans.
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what is a Mutual Saving Bank?
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A financial institution that is owned by depositors and specializes in saving accounts and mortgage loans.
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What is a credit union?
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a user- owned, non-profit, cooperative financial institution that is organized for the benefit of its members
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What is a money market fund?
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A saving-investment plan offered by investment companies with earnings based on investments in various short-term financial instruments.
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Investment companies are also called?
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Mutual funds
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Regular saving accounts are also called?
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Passbook accounts
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What is a share account?
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a regular saving account at a credit union
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What is a CD?
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a saving plan requiring that a certain amount be left on deposit for stated time period to earn a specified interest rate
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What is a money market account?
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a saving account that requires a minimum balance and has earnings based on market interest rates.
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EE bonds are called? why?
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Patriot bonds because of 9/11 attacks
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HH bonds are called?
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Current-income bonds they earn interest every 6 months
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what is the rate of return?
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(yield)- the percentage of increase in the value of saving as a result of interest earned
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what is compounding?
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interest earned on previous earned interest
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What is the Truth In Saving Law?
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requires financial institutions to disclose fees on deposits, interest rate, APY, and other terms and conditions on saving accounts plan
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Annual Percentage Yield (APY) means?
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The percentage rate expressing the total amount of interest that would be received on a 100 deposit based on frequency of compounding for a 365 day period
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Regular checking accounts usually have a?
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monthly service charge
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T OR F Activity accounts a fee for checks written and sometimes a fee for each deposit ?
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True
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T OR F Interest earning checking accounts are sometimes called NEW accounts?
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FALSE they are usually called NOW accounts meaning that require a minimum account
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A share draft account is?
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an interest-bearing checking account at a credit union
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what is overdraft protection?
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An automatic loan made to checking account customers to cover the amount of checks written in excess of the available balance in the checking account.
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Individual account means?
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only one person is allowed to write checks
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What is a deposit ticket?
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Adding funds to your checking account, it lists the amounts of cash and checks being deposited
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Endorsement refers to?
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signature on the back of a check
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A blank endorsement requires?
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Just your signature.. like cashing a check
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A restrictive endorsement requires?
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the words DEPOSIT ONLY followed by your signature
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A special endorsement requires?
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PAY TO THE ORDER OF, followed by the name of the person and your signature
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A certified Check?
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a personal check with guaranteed payment
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A cashiers check?
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A check of a financial institution
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A traveler's check?
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Allows you to make payments when you are away from home
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