Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Bank > Bank Vocab > Flashcards

Bank Vocab Flashcards

1
Q

A form of check fraud, involves taking advantage of “float” time making use of non existent funds in a bank acct.

A

Check Kiting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Money borrowed on a credit card

A

Cash advance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A situation in which many depositors simultaneously decide to withdraw money from a bank

A

Bank run

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Interest rate the Federal Reserve charges on its loans to member banks

A

Discount rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Money banks make from processing credit and debit transactions

A

Interchange

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How interchange works

A

Each time you swipe your card the store or merchant pays an interchange fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Those involved in a card transaction

A

Acquiring bank - where the money is going to
Card issuing bank - where the money is coming from
Credit card association - visa, MasterCard, discover, etc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Who pays for the interchange fees?

A

Merchant services which is generally then passed on to the customers through slightly higher product or service pricing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

______________ is the paying off of debt with a fixed repayment schedule in regular installments over a period of time for example with a mortgage or a car loan.

A

Amortization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A pre-approved loan between a financial institution and borrower that may be used repeatedly up to a certain limit and can subsequently be paid back prior to payments coming due.

A

Open End Credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Loans underwritten conservatively and supported by the net worth of individual borrowers.

A

Unsecured Loans

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The legal instrument used to secure a lien position on real estate.

A

Deed of Trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The underwriting calculation that reflects total income divided by total debts. Measure of a borrowers ability to make loan payments from cash flow.

A

Debt Servicing Ratio

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The Inverse of Debt to Income Ratio

A

Debt Servicing Ratio

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is used in conjunction with DSR to determine qualification?

A

Residual Income (RI)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

A requirement for loans that fall under ATR

A

Verification of Employment (VOE)

17
Q

The automated underwriting system that is required for all secondary market mortgages

A

Desktop Underwriter (DU)

18
Q

A term used to describe a loan payment

A

Principal and Interest (PI)

19
Q

A term used to describe a mortgage payment where the bank is also escrow in for property taxes and homeowners insurance

A

Principal, Interest, Taxes, Insurance (PITI)

20
Q

A mortgage loan program with adjustable rate feature. The interest rate and payment can change.

A

Adjustable Rate Mortgage (ARM)/ Fixed Initial Rate Mortgage (FIRM)

21
Q

Used to verify loans or rent payments not present on the credit report

A

Verification of Mortgage (VOM)

22
Q

The annualized cost of credit, expressed as a percentage.

A

Annual Percentage Rate (APR)

23
Q

A form that verifies bank account information

A

Verification of Deposit (VOD)

24
Q

A mortgage insurance policy that protects the bank in case the borrower defaults on payments. Required in most cases, when the borrower has less than 20% equity in their home.

A

Private Mortgage Insurance (PMI)

25
Q

The secondary market underwriting term for DSR that displays the result in a percentage form

A

Debt to Income Ratio (DTI)

26
Q

The permit given by the city/ county to certify that a newly constructed home is complete and in a condition suitable for occupancy.

A

Certificate of Occupancy

27
Q

The cost to complete the interior of a commercial building, for a specific tenant.

A

Tenant Improvement (TI)

28
Q

Bank balance sheet item typically associated with foreclosed properties. (Banks want to get rid of these as soon as possible)

A

Other Real Estate Owned (OREO)

29
Q

A base interest rate used for loans with variable pricing, and FirstBank’s preferred index. Alternative to London Inter-Bank Offering Rate.

A

WSJ Prime Rate

30
Q

Yield of US Government Borrowing, considered to be the least risky investment available.

A

Treasury Bill

31
Q

Money paid to confirm a contract.

A

Earnest Money

Bank (28 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions