Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Personal Finance > Test 3 > Flashcards

Test 3 Flashcards

You may prefer our related Brainscape-certified flashcards:
Series 65 flashcards Series 63 flashcards Series 66 flashcards Series 7 Top-off Exam flashcards SIE Exam flashcards CFA flashcards Series 79 Top-Off Exam flashcards
1
Q

issue of money, goods or services to an individual or entity with the expectation of future payments

A

credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

trusted institutions where money is kept secure

A

bank

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

process of borrowing money from an individual or investor without a bank’s consent

A

peer-to-peer lending

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

amount of money charged by a bank to borrow money

A

interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

short-term, high cost loan typically for $500 or less and due on the next payday
or when income is received

A

payday loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

valuable asset the borrower offers to lender for securement of the loan provided

A

collateral

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

maximum amount being loaned to the borrower by the creditor

A

revolving credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

determines a series of fixed or installment payments a borrower must repay over a determined period of time

A

installment credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

right to keep possession of property of another until a debt owed by the person is discharged

A

lien

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

loan which is issued and supported by a borrower’s reliability, rather than value of an asset

A

unsecured credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

provides a line of credit from a lending institution which can be accessed with a card, has a maximum limit (credit limit) which can be spent and requires monthly repayments

A

credit card

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

draws money directly from the consumer’s checking account when a purchase
is made

A

debit card

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

document or spreadsheet outlining an individual’s financial position at a given
point of time

A

income statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

report which provides a list of assets and debts owed

A

net worth statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

number given to an individual which indicates to the lender their ability to repay a loan

A

credit score

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

shows how an individual has used credit in the past, how much debt they currently have and whether or not they pay their bills on time

A

credit report

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

annual or yearly rate charged for borrowing or earned through an investment

A

annual percentage rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

interest rate which stays the same throughout the loan

A

fixed interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

interest rate which fluctuates overtime as market rates change

A

variable interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

process which involves paying off a debt with a fixed payment plan over a specific period of time

A

loan amortization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

money which is agreed to be paid back and only goes towards the principal of the loan

A

principal payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

companies engaged in the business of dealing with the monetary transactions
of individual and commercial clients

A

financial institutions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

secure means of storing money in which individuals or business can deposit or
withdraw money as needed

A

checking account

24
Q

secure means of storing money while earning interest

A

savings account

25
Q

fee paid regularly at a set rate

A

interest

26
Q

money borrowed for personal reasons; to be repaid within a specific time frame
and with added interest

A

personal loan

27
Q

money borrowed for the purchase of real estate; to be repaid within a specific
time frame and with added interest

A

mortgage loan

28
Q

money borrowed for business reasons; to be repaid within a specific time frame
and with added interest

A

business loan

29
Q

money borrowed for the purchase of a vehicle; to be repaid within a specific
time frame and with added interest

A

auto loan

30
Q

form of payment in which customers draw money directly from their checking
account

A

debit card

31
Q

form of payment in which customers borrow money from a financial institution
up to a certain limit, with added interest

A

credit card

31
Q

allows an individual to borrow against their home’s value to finance major
expenses; to be repaid within a specific time frame and with added interest

A

home equity loan

32
Q

allows banks to manage and protect an account on behalf of a beneficiary

A

trust account

33
Q

individual who holds legal control of the assets in a trust account

A

beneficiary

34
Q

electronic movement of money from one account to another

A

electronic funds transfer

35
Q

allows individuals to have their paycheck or other payments deposited directly
into their account

A

direct deposits

35
Q

electronic banking terminal which allows customers to complete basic
transactions, such as deposits or withdrawals

A

automated teller machine

36
Q

electronic banking systems allowing customers to conduct financial
transactions via the Internet

A

online banking

37
Q

line of credit issued to customers to cover checks or debits exceeding the
amount in their account

A

overdraft protection

38
Q

form on online payment where money is electronically withdrawn from the
customer’s account

A

electronic checks

39
Q

allows customers to pay bills or transfer money between accounts over the
phone

A

pay-by-phone system

40
Q

organizations which accept deposits and provide loans

A

depository financial institutions

41
Q

receive, transfer and lend money to individuals, businesses and government

A

commercial banks

42
Q

provide financial services, such as checking and savings accounts, mortgages,
credit cards and auto loans for individuals, families and small businesses

A

retail banks

43
Q

offer financial services such as checking and savings accounts, debit and
credit cards, mortgage and auto loans and lines of credit at an affordable rate
for its members

A

credit unions

44
Q

handle deposit accounts, personal loans and mortgage lending

A

savings and loan associations

45
Q

do not offer federally insured deposit accounts

A

non-depository financial institutions

46
Q

private organizations which hold and manage securities for investment
purposes

A

Investment Banks & Companies

47
Q

financial instruments with ownership rights, debt rights, or rights to buy, sell or
trade, such as stocks and bonds

A

securities

48
Q

assist individuals in buying and selling securities among investors

A

brokerage firms

49
Q

provide financial coverage to protect individuals or organizations against
possible adverse events in exchange for premium payments

A

insurance companies

50
Q

amount paid for an insurance policy

A

premium

51
Q

provides loans for prospective home buyers

A

mortgage company

52
Q

requiring more than one method of credential authentication to verify a user’s
identity

A

multifactor authentication

53
Q

continued actions of a business

A

business continuity

54
Q

wrongful or criminal deception used for financial gain

A

fraud

55
Q

sending forged e-mails impersonating an online bank

A

phishing

Personal Finance (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions