Banking

Question 1

Bank

Answer 1

A broad term that refers to a financial institution regulated at the federal level, state level, or both.

Question 2

Commercial bank

Answer 2

A commercial bank is a financial institution that accepts deposits and makes loans.

Question 3

Shareholder

Answer 3

A person, company, or institution that owns at least one share of a company’s stock.

Question 4

Financial Institution

Answer 4

An institution that engages in the movement of money from one place to another.

Question 5

Types of financial institutions

Answer 5

Banks, Credit Unions, Financial Technology Companies (Fintech Companies), Mortgage Lenders, Credit Card Companies, Insurance Companies, and Savings and Loan Associations (S&Ls)

Question 6

Federal Deposit Insurance Corporation

Answer 6

A United States government corporation that provides deposit insurance to american commercial banks, in case they fail.

Question 7

Credit Union

Answer 7

A non profit financial institution that is owned by it’s members.

Question 8

National Credit Union Administration

Answer 8

An independent federal agency that insures deposits made at credit unions in the U.S.

Question 9

Savings and Loan Associations

Answer 9

Financial Institutions that specialize in accepting savings depostis and making mortgage loans.

Question 10

Mutual Ownership

Answer 10

A type of ownership where a company’s customers are it’s owners.

Question 11

Mortgage Lenders

Answer 11

A financial institution that provides mortgages/Home loans.

Question 12

Mortgage

Answer 12

A type of loan used to purchase a house.

Question 13

Foreclosure

Answer 13

The legal process of a lender taking back ownership of a propery when a borrower defaults on a mortgage.

Question 14

Credit Card Company

Answer 14

A finanial institution that provides or issues credit cards.

Question 15

Credit Card Network

Answer 15

An organization that facilitates debit and credit card payments between card issuers and merchants.

Question 16

Four Major Credit Card Networks

Answer 16

Mastercard, Visa, American Express, Discover,

Question 17

Debit

Answer 17

The process of a bank removing an amount of money from a customers account, as payment for goods or services.

Question 18

Credit

Answer 18

The process of adding an amount of money to an account.

Question 19

Insurance Company

Answer 19

A financial institution that sells insurance policies to protect people and organizations from financial losses.

Question 20

Premiums

Answer 20

Regular payments that customers make to an insurance company.

Question 21

Risk Pooling

Answer 21

An Insurance company collecting premiums from all policyholders and using the funds to pay out claims.

Question 22

Claim

Answer 22

A request to an insurance company for the compensation of a covered loss or incident.

Question 23

Underwriting

Answer 23

The process of an insurance company evluating the risk of insuring an individual or business.

Question 24

Types of Insurances Companies

Answer 24

Life, Health, Property & Casualty, Automotive, Commercial.

Question 25

Life Insurance Companies

Answer 25

Companies that sell insurance policies that provide financial protection to designated beneficiaries upon the death of the insured person.

Question 26

Health Insurance Companies

Answer 26

Companies that sell insurance policies that provide coverage for medical expenses.

Question 27

Property & Casualty Insurance Companies (P&C)

Answer 27

Companies that sell insurance policies that provide coverage for property damage and liabilities.

Question 28

Liability

Answer 28

The state of being legally responsible for something.

Question 29

Insurance Policy

Answer 29

A contract detailing the terms and conditions of an insurance.

Question 30

Terms and Conditions (T&Cs)

Answer 30

A legal agreement between a business and it's customers that outline the rules and expectations for both parties.

Question 31

Automotive/Auto Insurance Companies

Answer 31

Companies that sell insurance polices that provide coverage for vehicle damage and liabilites.

Question 32

Commercial Insurance Companies

Answer 32

Companies that sell insurance policies that provide coverage for a variety of business risks.

Question 33

Negligence

Answer 33

A legal term that refers to the failure to use reasonable care to prevent harm.

Question 34

Commercial

Answer 34

Relating to or engaged in commerce.

Question 35

Commerce

Answer 35

The buying and selling of goods and services.

Question 36

Insurance

Answer 36

An arrangement by which a company provides a guarantee of compensation for a loss.

Question 37

Types of Life Insurance

Answer 37

Term, Whole, Universal, Variable, Final expense.

Question 38

Cash Value Component

Answer 38

A feature of permanent life insurance policies that acts as a savings account holding a portion of premiums, separate from the death benefit.

Question 39

Types of Health Insurance

Answer 39

HMO (Health Maintenance Organization), PPO (Preferred Provider Organization), EPO (Exclusive Provider Organization), HDHP (High-Deductible Health Plan), Medicare, Medicaid.

Question 40

Deductible

Answer 40

The amount of money a policyholder pays before the insurance company pays for covered expenses.

Question 41

Federal

Answer 41

Pertains to a union of states under a central government.

Question 42

Joint Insurance

Answer 42

A type of policy that covers two or more people under a single policy.

Question 43

Types of P&C Insurance

Answer 43

Homeowners, Auto, Renters, Commercial, Umbrella.

Question 44

Types of Auto Insurance

Answer 44

Liability, Collision, Comprehensive, Uninsured/Underinsured, PIP (Personal Injury Protection)

Question 45

Multiline Insurance/Package Insurance Policy/Bundled Insurance Policy

Answer 45

A type of insurance policy that combines multiple types of coverage into a single policy.