Pf Ch.5 Words To Know

Front 1

Certified Check

Back 1

A bank guarantee that your personal check is good

Front 2

Cashier's Check

Back 2

A check drawn against a bank as opposed to your account

Front 3

Credit Unions

Back 3

A not for profit organization that is open only to members of that institution and tends to offer more favorable interest rates to borrowers and savers

Front 4

FDIC

Back 4

Abbreviation for Federal Depository Insurance Corporation

Front 5

Money-Market Mutual Funds

Back 5

Advantage is high interest rates, check writing privileges and minimal risk

Front 6

Online and Mobile Banking

Back 6

Allows you to access your accounts at any time of day, transfer funds between accounts and pay bills and receive payments online

Front 7

Overdraft Protection

Back 7

An automatic loan made to your checking account whenever your account does not contain enough cash to cover the checks that you have written against it

Front 8

NOW

Back 8

Another name for an interest-bearing checking account

Front 9

Cash Management Alternatives

Back 9

By comparison you should compare returns using comparable interest rates or take into account their tax status or consider their safety or risk

Front 10

Checking Account Alternatives

Back 10

Cashiers checks and money orders are an alternative

Front 11

Checking Accounts

Back 11

Common fees for these accounts include monthly fees, minimum balance fees and charges per check

Front 12

Savings and Loans Association

Back 12

Financial institution originally established to provide mortgage loans to depositors

Front 13

Deposit-Type Financial Institutions

Back 13

Financial institutions providing traditional checking and saving accounts

Front 14

APY Conversions

Back 14

Important to convert interest rates into this on different accounts and with different banks since rates will vary with different compounding periods

Front 15

Liquid Assets

Back 15

Investments that can be easily converted into cash

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Liquid Asset Characteristics

Back 16

Low risk, a temptation to spend and low return

Front 17

Asset Management Accounts

Back 17

Name for comprehensive financial services packages offered by brokerage firms

Front 18

Certificate of Deposit

Back 18

Savings alternative that pays a fixed rate of interest and keeps your funds on deposit for a contracted period of time ranging from 30 days to several years

Front 19

T-Bills

Back 19

Short terms notes of debt issued by the federal government are commonly called

Front 20

Mutual Fund Firm

Back 20

The name of an investment company that raises funds from investors, pools the money and invests in stocks or bonds

Front 21

Opportunity Costs

Back 21

These costs as associated with checking accounts include low interest rates and high minimum balance requirements

Front 22

Liquid Assets 2

Back 22

These cover unplanned expenses and prevent interrupting your long term investments and prevent overdrafts in checking accounts

Front 23

Money Market Deposit Accounts

Back 23

These offer a higher interest rate than savings account at commercial banks

Front 24

APY

Back 24

This converts interest rates compounded for different periods into comparable annual rates, allowing you to compare interest rates easily

Front 25

Truth in Savings Act 1993

Back 25

This law helps investors compare interest rates on investment options