Ch. 12 Personal Finance Flashcards
ATM
Machines used to take cash out of your bank account
Bank Draft
When you authorize someone to take money out of your account automatically
Cashier’s Check
A type of check that is
written to a specific
payee but charged
against the bank
instead of your
account
Check
A written order from
you to your bank
instructing it to pay
money from your
account to another
party
Check Register
A small ledger the
bank will provide you
for keeping track of
your account balance
Checking Account
An account at a bank
into which you deposit
money and withdraw
money by writing
checks or using a debit
card
Credit Union
Functions similarly to a bank, but unlike a bank, a credit union has nonprofit status and is owned by its members
Debit Card
Enables you to
withdraw cash from
your account at
ATMs, or to pay
directly for goods or
services at
businesses
Depository Institutions
Financial institutions
that provide traditional
checking and savings
account for individuals
and business. They also
provide loans
Discount Rate
Occurs when the
Fed changes the
interest rate it
charges to the
banks when it loans
them money
Electronic Funds Transfer
Whenever you
authorize someone to
access your bank
account for payment
or for deposit
Federal Deposit Insurance Corporation (FDIC)
Insurance on any 250k deposited in the bank if banks go bankrupt, covers checking accounts,
savings accounts, NOW accounts, and
certificates of deposit
Federal Reserve System
Serves as the
central bank of
the United States
Fiat Money
Money that has value
not because the coins
and bills have some
value in their own
right, but because the
government orders
that it be accepted as
payment
Inflation
A sustained increase in
the general level of prices
