Final Flashcards
Endorsement
A signature on the back of a check
Overdraft
Issued when a lack of sufficient funds to cover a check
Payee
One to whom the check is written
Reconcile
To bring your bank statement and check register into agreement
Outstanding
Financial transactions that you know about but the bank doesn’t know about yet
Interest
A fee paid for the opportunity to use someone else’s money
Credit union
A non-profit financial institution owned by its members
Savings and loans
Originally specialized in providing funds to home buyers
Mutual savings bank
State chartered financial institutions operated by trustees for the benefit of the depositors
Commercial bank
Owned by the shareholders and operated for their profits
Internet bank
Financial institutions that operate exclusively using on-line banking
Wire transfer
A financial institution that moves funds from one bank to the other electronically
Money order
A purchased certificate used to lay a specific amount
Debit card
A card that allows the user to subtract money from their bank account
Prepaid card
Sold in specific dollar amounts and can sometimes be reloaded
Money transfer service
Money can be sent almost anywhere in the world when purchasing this type of service
FDIC
A federal agency that insures savings, checking, and other deposits
Pin
A secret code that protects the security of your account
ATM
A computer that gives customers electronically access to their accounts
Cashiers check
A check issued and guaranteed by a bank
Certified check
A check written from your personal account that has been stamped by a bank guaranteeing heir is enough money in your account to cover the check
Cancelled check
A check at sled by the bank indicating it’s been paid
EFT
The movement of funds electronically
Signature card
Must fill out when opening an account
Banks make money by…
Charging borrowers interest
EFT stands for
Electronic funds transfer
FDIC stands for
Federal deposit insurance corporation
ATM stands for
Automated teller machine
In case your bank fails, what does your bank need…
FDIC
All banks must offer the same interest rate
False
The EFT act stats that if your credit card is stolen and you report it within two business days your are liable for no more than…
$50
What is identify theft?
Illegal use of someone’s personal information
What should you do if your identity has been stole?
File report with police
Notify you bank and credit card companies
Call the three major credit agencies
Call FTC
What does the financial services modernization act do for consumers?
Requires companies involved in financial activities to send privacy notices to customers
What is online profiling?
Companies collect information from the websites consumers are using
What are cookies?
Some files stored on your computers hard drive when you visit a site
Bait and switch
When companies persuade you to buy an item at a higher price
False promise of free gift
When a store offers a free gift but the gift isn’t really free
Deceptive pricing
Advertising a sale that isn’t better then apthe everyday price
Hidden catches
Extra charges and fees hidden in products
Pyramid schemes
Multiple people pitch in and each get money back
Chain letter
A message sent that instructs the recipient to send copies to multiple people
What agencies should you contact if you have been a victim of fraud?
Better business burea FTC Local consumer protection agency State attorney generals office National fraud information center
When is income tax day?
April 15th
How does your employer help you with tax obligation?
Takes the taxes out for you
What is the name of the government agency in charge of collecting income tax?
IRS
Where does the W-2 come from?
Employer
What form do most teens use to file their federal income tax?
1040EZ
2 places to find form and instructions for free to complete your taxes
Libraries
IRS site
What is a tax deduction?
Reduced amount of income that is taxed
2 examples of tax deduction
Charities or interest on home loan
What is a Standard deduction?
Amount that the IRS allows without listing expenses
2 examples of tax credit
Paying college tuition
Childcare expenses
Phishing
Scammers who use fraudulent emails or texts or copycat a website to get you to share personal information
Malware
Viruses and other unwanted software that gets installed on your devices without consent
How to protect yourself from phishing scams
Use secure software you trust
Make sure to set it to update automatically
What to do when you are a victim of scam
File a report with the federal trade commission
3 major credit reporting agencies
Equifax
Experian
Transunion
What is the difference between first party cookies and third party cookies?
First party is placed by the site
Third party is placed by someone else
Social security number
A unique number used by the government to track your earnings
Skimmer
A palm sized gadget to collect and save your credit card information
Interest
The extra amount you pay in “favor” in carrying over an unpaid balance
APR
Annual Percentage Rate: determines the amount of interest you’ll pay on credit card purchases
Fixed rate
An interest rate that doesn’t change
Introductory rate
Zero or low APR’s for the first few months
Minimum payment
Lowest amount of money you are required to pay on your credit card statement each month
Annual fee
A yearly fee companies will charge you for the use of a credit card
Charge card
A card issued by a bank allowing the user to purchase items on credit
What are the three C’s?
Character
Capacity
Capital
Open-end credit
Credit that may be used up to a certain amount
Closed-end credit
Borrower must repay the amount in a specific number of equal payments
When can a credit card company change the terms on your agreement?
Whenever after a 15 day notice
When choosing a credit cards APR, it’s important to…
Find low APR to pay low interest
How is affinity cards different from regular credit cards?
Offered by two groups, a bank, an airline, or college
Default
Frequently late to paying your credit card bill and you have been reported to a credit burea
How will your payment be applied if you have different APR’s?
Payment will go to the lower APR
When will you lose your grace period on your credit card?
When you carry a balance
Credit score
A number between 300-850 that reflects your credit history
Installment credit
A loan that is paid in equal monthly installments with a fixed interest rate
Credit report
A document containing important information about a person
Balance transfer
The process of moving an unpaid credit card debt from one issuer to another
Credit bureau
A business that collects and sells information about how consumers repay debt
Card holder agreement
The written statement that gives the terms and conditions of a credit card account
Capital
The money paid to use money
Finance charge
The charge for using a credit card, compromised interest cost and fees
Introductory interest rate
The low rate charged by the lender for an initial period to entice consumers to switch credit cards
Payday loan
Short terms, high interest cash loan secured by a paycheck
What type of credit is a car loan an example of?
Installment credit
Bankruptcy
A legal proceeding designed for customers who are no longer able to pay their bills
Charge card
A card used in which purchases must be paid in full each month at the end of the month
Credit card
A plastic card issued by a financial institution for the purchase of goods or services on credit
Minimum finance charge
Zero or low interest payments for the first few months
Piggybacking
The act of improving your credit score or rating by becoming a member of someone else’s credit card
Schumer box
The area where you will find the terms and conditions of a credit card offer
Secured credit card
This credit card requires collateral. Designed for people who don’t have a credit history or poor credit history
Universal default
A common practice for credit card users that allows them to increase cardholders interest rate for any change in a persons credit history or profile
Overdraft
Lack of money to pay a check
Reasons for using checks
More secure
Can send photo copies of your checks
Balance transfer
The process of moving an unpaid credit card debt from one issuer to another
Credit bureau
A business that collects and sells information about how consumers repay debt
Card holder agreement
The written statement that gives the terms and conditions of a credit card account
Capital
The money paid to use money
Finance charge
The charge for using a credit card, compromised interest cost and fees
Which kind of tax is tax on interest you earn on savings?
Income tax
Which kind of tax helps pay for people’s retirement?
Social security tax
Which level of Government is primarily responsible for providing public elementary education?
Local
What is another name for consumption tax?
Sales tax
Which level of government pays for the good of traffic lights and sidewalks in different towns?
Local
Who pays the payroll taxes to the government?
Employers
Which tax is a progressive tax?
Income tax
Which kind of tax would make gasoline cost more?
Excise tax
Which kind of tax is a tax that is sometimes used to decrease demand for a particular item?
Sales tax
Which level of government pays for services like bridges, highways, and hospitals?
All three
Which level of government gets most of its revenue from property tax?
Local
Which kind of tax is a tax on something you buy?
Sales tax
Which kind of tax is a tax on something you own?
Property tax
What level of government gets most of its revenue from income tax?
Federal
What is another word for excise tax?
Luxury tax
What are taxes on gasoline, cigarettes, and airplane tickets called?
Excise tax
Which kind of tax is a tax on money people get for working?
Income
Which kind of tax is different of different people based on their ability to pay?
Income
What level of government can tax people’s income?
All three
Which level of government pays for the service of medical care for people who can’t afford it?
Federal
