5.1 Flashcards
Bounced check
A check that is not honored by bank and is returned to the payee’s bank due to non-sufficient funds
Cashier’s check
A check issued against the bank’s funds
Certificate of deposit
A time deposit that pays a fixed rate of interest for a specified length of time
Check
A written order to a bank to pay a stated amount to a person or business
Checkbook register
A tool used to track checking account transactions
Checking account
A demand deposit in a bank on which checks are drawn
Debit card
A card used to with draw or deduct money from your checking account
Deposit
Money added to a checking or savings account
Endorsement
A signature, with or without instructions, written on the back of a check
Floating a check
Writing a check and planning to make a deposit later to cover it before the check is processed
Inactive account
A checking or savings account that does not meet minimum usage requirements
Internet banking
Accessing and managing your account online
Money market account
A type of savings account that earns the market rate of interest on the money deposited
Money order
A type of check used to pay bills or make payments for which the money is guaranteed
Post dated check
A check written with a date that will occur in the future
Principal
Sum of money set aside on which interest is paid
Rule of 72
A quick formula for computing how long it will take to double money invested in a given interest-rate
Savings account
A demand deposit account designed for the accumulation of money in a safe place for future use
Simple interest
Interest computed on principle once during a certain time period
Smart card
A card that contains a computer chip that stores electronic money
Stop payment
An instruction to the bank not to honor a check that has been issued or lost
U. S. Savings bond
A discount bond issued by the federal government that pays a guaranteed minimum rate of interest
Withdrawal
Taking money from your account
Annuity
A fixed amount set aside on a regular basis over time; a contract purchased from an insurance company that guarantees a series of regular monthly payments for a set time
