Other terms/Concepts

Question 1

independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

Answer 1

FDIC

Question 2

A pledge of property as a guarantee that the borrowed money plus interest will be repaid.

Answer 2

Mortgage

Question 3

The difference between the value of the property and the amount owed on the mortage.

Answer 3

Equity

Question 4

Gradual repayment of a debt by regular payments of principle and interest.

Answer 4

Amortization Chart

Question 5

. Lenders use borrowers’ FICO scores along with other details on borrowers’ credit reports to assess credit risk and determine whether to extend credit.

Answer 5

FICO Credit Score

Question 6

Became law on May 22nd 2009. Affords consumers more detailed information and expanded options in the area of credit.

Answer 6

The credit card act

Question 7

is the process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement. The goal of this process is to ascertain the differences between the two, and to book changes to the accounting records as appropriate.

Answer 7

Bank reconciliation

Question 8

Ensures consumers are fully informed about cost and conditions of barrowing

Answer 8

truth and lending act

Question 9

Regulates identity theft

Answer 9

FTC

Question 10

Character, capital, and capacity

Answer 10

The three C’s of Credit

Question 11

Strategy to pay off credit card w/ last balance

Answer 11

Debt Snowball