Study Skills Flash Cards

Question 1

Annual Percentage Yield (APY)

Answer 1

A percentage rate that shows how much interest someone would earn after a full year.

Question 2

Bottom Line

Answer 2

A number that shows the difference between what a business has earned vs what it owes.

Question 3

Bounce

Answer 3

When a check is returned because there aren’t enough funds to cover the transaction. It could take days or weeks for the check to be returned; when it is, the account holder is charged a non-sufficient funds (NSF) fee. Sometimes the check recipient is charged a fee, too.

Question 4

Checks

Answer 4

An official form that tells a financial institution to give a certain amount of money from someone’s account to someone else’s

Question 5

Checking Account

Answer 5

A transaction account that usually does not earn interest. Checking accounts allow you to use a debit card or check to buy things with money from that account.

Question 6

Credit Score

Answer 6

A number between 300 and 850 that’s compiled by considering someone’s borrowing history and represents their creditworthiness to potential lenders.

Question 7

Debit Card

Answer 7

A card that allows you to pay for things with money from a checking account.

Question 8

Deposit

Answer 8

Money put into an account at a financial institution

Question 9

Dividends

Answer 9

Payouts based on profit to an investor

Question 10

Federal Deposit Insurance Corporation (FDIC)

Answer 10

An Agency in the federal government that insures deposits in banks and examines their safety for customers.

Question 11

High-Yield Savings Accounts

Answer 11

A kind of savings account that earns a higher interest rate than a traditional savings account

Question 12

Incentive

Answer 12

A benefit of or reason for doing something.
EX: Interest gives people an incentive to save, because they’ll end up earning more money

Question 13

Interest

Answer 13

An amount of money that gets added to the principle, shown as a percentage. Interest can be earned or owned.

Question 14

Liability

Answer 14

Something a person or business owes money on.

Question 15

National Credit Union Administration (NCUA)

Answer 15

A part of the federal government that insures money in credit unions and regulates them to keep customers safe.

Question 16

Overdraft Fee

Answer 16

A fee charged when there isn’t enough money in an account to cover an expense. Purchases up to a certain limit may still go through, with the additional fee for each transaction. Account holders typically opt-in to overdraft protection

Question 17

Principal

Answer 17

The money originally deposited into an account or borrowed on a loan

Question 18

Savings Account

Answer 18

An account meant to help with and encourage saving money by paying interest. Purchases generally cannot be made directly from the money in the account.

Question 19

Solvent

Answer 19

A measure of a business’s ability to meet financial obligations and pay back dept. A financial institution is solvent if they have enough money to cover all customer accounts.

Question 20

Withdraw

Answer 20

To pull money out of a account at a financial institution

Question 21

Advertising Influences

Answer 21

A number that show the difference between what a business has earned vs what it owes.

Question 22

Brand Reputation

Answer 22

Brand Reputation is the collective perception of a brand by customers, employees, partners, and others. A stronger brand reputation means more people trust and advocate for the brand.

Question 23

Customer service

Answer 23

The assistance provided by a company to consumers ho purchase or use its products or services.

Question 24

Fixed Expenses

Answer 24

Expenses that generally don’t change in dollar amount from month-to-month, like a mortgage or rent, insurance payments, and more.

Question 25

Loss leaders

Answer 25

A pricing strategy where a product is sold below its market cost to attract customers

Question 26

Opportunity Cost

Answer 26

The value of the next-best alternative when a decision is made. In terms of goods or services, the opportunity cost is what you give up to buy what you want.

Question 27

Product Lifespan

Answer 27

The average life of a product from when it is sold to when it is discarded

Question 28

Rain check

Answer 28

A coupon issued from a store to a customer that guarantees a sale item that is out of stock can be purchases later for the sale price.