Personal Finance Chapter 5 Vocabulary

Question 1

a computer terminal that allows the withdrawal of cash from an account.

Answer 1

Automated Teller Machine (ATM)

Question 2

An object that allows you to withdraw money or pay for purchases from your checking or savings account.

Answer 2

Debit Card

Question 3

A transaction where you use your debit card to purchase an item at a store/restaurant/etc.

Answer 3

Point-of-sale Transaction

Question 4

A savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return.

Answer 4

Certificate of Deposit (CD

Question 5

The percentage increase in the value of your savings from earned interest.

Answer 5

Rate of Return

Question 6

the process in which interest is earned on both the principal and on any previously earned interest.

Answer 6

Compounding

Question 7

A nonprofit financial institution that is owned by its members.

Answer 7

Credit Union

Question 8

request that a bank or other financial institution does not cash a particular check.

Answer 8

Stop-payment Order

Question 9

the signature of the payee, the party to whom the check has been written.

Answer 9

Endorsement

Question 10

A report that accounts for the difference between the bank statement and a checkbook balance.

Answer 10

Bank Reconciliation