Everfi More Flashcards
retail bank
usually a physical bank;
online bank
offers customers just about every service traditionally available through a local branch; even accepts deposits (online or via mail) and provides an online bill payment system
credit union
not-for-profit organizations that exist to serve their members rather than to maximize corporate profits; accept deposits, make loans, and provide a wide array of other financial services; focus on providing a safe place to save and borrow at reasonable rates; may not offer the same level of technology/innovation as retail banks
federal reserve
oversees nation’s system of money and credit; prints money, controls how much is available in the economy, adjust long term interest rates, keeps prices stable, promotes high employment; NOT part of government - independent organization with some government oversight
FDIC Insurance
Federal Insurance Department Corporation protects the bank deposits of customers against loss up to $250,000 per account per customer
interest
in terms of savings, how much the bank will pay you to have use of your money
liquidity
the ease with which an asset can be converted into cash
reconciling an account
balancing your transaction register each month with the balance shown on the bank statement
parts of the federal reserve
board of governors, 12 regional reserve banks, federal open market committee (FOMC)
board of governors
insures banks behave responsibly, superviseS 12 reserve banks, helps decide monetary policy
12 regional reserve banks
keep eye on banks in their region, provide financial services to banks, collect data and research the economy
federal open market committee (FOMC)
decides monetary policy,
bank teller
job at a bank; handles daily account transactions
branch manager
job at a bank; manages all personnel (employees) at a specific bank
customer service representative (CSR)
job at a bank; helps customers with questions about products, creates new accounts
loan officer
job at a bank; advises, evaluates, and signs off on loans to individuals and businesses
required balance
a certain amount of money you must have in some bank accounts at any given time to avoid being charged a fee
auto-pay
a service offered by banks where account holder can schedule payments to be made automatically on a specific date for a specific amount (very useful to make payments which are mostly and consistent (insurance premiums, mortgage payments, rent, etc.)
direct deposit
an automatic, electronic deposit of a paycheck into a bank account without having to take a physical check to the bank
auto-save options
a service offered by banks where account holder can schedule a specific amount of money to be transferred to a savings account or other investment on a specific date each month
NCUA Insurance
National Credit Union Administration insures up to $250,000 per person per account at a credit union; similar to FDIC insurance provided at banks
checking account
a bank account which allows you to write checks and use debt cards for purchases and ATM withdrawals; liquid, good for frequent transactions; must be good record-keeper to avoid NSF fees
savings account
a bank account which allows you to save money and earn some interest; checking access is limited, minimum balance may be required
money market accounts
a bank account that offers higher interest rates than standard savings rates, but with greater restrictions, higher minimum balance
certificate of deposit (CD)
a savings alternative offered by banks in which money is left on deposit for a stated period of time to earn a specific rate of return; low liquidity, penalties for withdrawing early; SHOULD pay higher interest due to low liquidity
parts of a check: amount paid (numerical)
numbers are written in box representing how much the check is worth
parts of a check: amount paid (long, written form)
amount is spelled out on line; represents the “legal tender”; this is what the bank will use
parts of a check: memo line
located in bottom-left corner; reminder of what the check was payment for and is not necessary to fill out and not considered a legal agreement
parts of a check: date line
indicates date check was written; must be money in account on that date; illegal to write future dates (called post-dating)
parts of a check: signature line
shown in bottom, right corner; place for the authorized signature; without this the check will not be cashed
parts of a check: routing number
1st range of numbers at bottom; identifies what bank and which federal reserve district the bank belongs to
parts of a check: account number
the 2nd range of numbers at bottom that identify which account to take money from
parts of a check: check number
shown in top, right corner; easy way to identify specific checks
Identity thieves can use your personal information to:
All of these
which piece of information is most useful to an identity thief?
your full name and social security number
how often are you entitled to a free credit report from each of the major credit reporting companies?
yearly
when buying a stock in a company, you are:
buying a portion of a company
when you purchase a municipal bond, you are:
loaning money to the municipality
The return of investment ( ROI)from education is typically the highest four:
Someone with a four-year bachelor degree
Your sister is starting ninth-grade next year and is thinking about going to college. What steps would you first recommend she takes?
Looking for school clubs and organizations she’s interested in
Which of the following loans will typically offer the lowest interest rate?
Federal student loans
When referring to student loans, what is a grace period?
You. After graduating or leaving school before you must begin paying back student loans
Which loan type requires you to make loan payments while you’re attending school?
Neither a nor B
Which of the following statements about federal state loans is true
The interest rate on your loan will be fixed overtime
Using the FASFA form you can apply for:
Federal student loans; the federal work study program
The federal application for student aid form:
Can be submitted online or by mail
After you send in your FASFA form what will you recieve back?
Your student aid teport
You were looking for ways to pay for your higher education cost, which of the following options will require you to pay back any money receive?
Federal student loans
Mortgages
loans to individuals or businesses to purchase homes, land, or other real property
Appreciation
a percentage of increase in the value of the property over it’s value when it was originally purchased.
Depreciation
the loss of value of an asset as a result of wear and tear, age, or obsolescence
Tax Incentives
A tax break used to reward people for investing or spending in a way that promotes economic growth.
Lease Terms
rules a tenant must agree to abide by before moving in
Balloon Payment
a financing agreement in which the last payment of a loan is much higher than the regular monthly payment
Liens
A charge or claim which one person has upon the property of another as security for a debt or obligation
Foreclosure
The process by which a home owner loses their home due to non-payment of mortgage, violating the due on sale clause, failing to keep taxes and insurance paid, or failing to maintain the home.
Fixed Rate Mortgage
The monthly payment doesn’t change, regardless of what happens to market interest rates. No matter how much interest rates fluctuate, your payment remains the same.
Adjustable Rate Mortgage
also known as a variable-payment mortgage has an interest rate that increases or decreases during the life of the loan
