Unit 19 Flashcards
an account that allows the owner to make deposits, write checks, and withdraw money
What is a checking account
a written order for the bank to pay a spesific amount to the party whom te check is written to
what is a check
a card that allows the user to electronically access funds in his or her account at an ATM or pay for goods and services from a business
what is a debt card
What is a straticgy for using money to reach important goals and to advance financial security
savings plan
What is a bank account used by depositers to accumulate money for future use
a savings account
What is a check written for an amount greater than the balance of the account
overdraft
what is a request for a financial institution to refuse to honor a check written
a stop payment order
what is a special type of check that the back guarantees to pay
cashier’s check
what is a personal check that the bank certifies is genuine and that there is enough money in the account to cover the check
certified check
what is a payment order for a specific amount of money payable to a specific payee
a money order
what is a payment order for a specific amount of money payable to a specific payee
a money order
what is the special form of a check that functions as cash
traveler’s check
What is the movement of money electronically from one financial institution to another
EFT
How can you immediately transfer money from one person to another
P2P
What is the signature on the back of a check
Endorsement
what must be filled out when writing a check
date, name of payee, amount of the check in #, amount of the check in words, reason-memo, signature
What is the endorsement that only requires the signature of the payee
Blank
What is the endorsement where a check may be used for only a specific purpose,
Restrictive
what is the endorsement used to transfer a check to another party
special
What is the person, business, or organization to whom a check is written to called
payee
what is a check written with a future date
a postdate check
what is the record of checks, atm transactions, deposits and charges on an account called
a bank statement.
What does it mean when you compare the check register to balance the checking account
Reconcile it
What is the type of demand deposit account that pays interest and allows for regular deposits and withdrawals
Interest-Bearing savings account
what is an account that pays a higher interest rate tan basic savings accounts
high-yield savings account
what are the type of savings accounts that requires a higher minimum balance than a regular savings account, but offers a higher interest rate
money market account
what is a savings account that requires a fixed deposit amount for a fixed period of time
certificate of decposit
what is the purchasing of a financial product or valuable item with the goal of increasing wealth over time in spite of possible loss
Investing
what is a plan that develops investment growth
personal investment plan
what is a collection of securities and assets a person owns
investment portfolio
what is the process of spreading risk by putting money in a variety of investments?
diversification
what is an investment created by pooling the money of many people and investing it in a collection of securities
mutual fund
What is the personal retirement investment account created by a person
individual retirement account — IRA
what is an individual retirement account that allows individuals to contribute pretax income to investments that with grow tax deferred
traditional ira
what is an individual retirement account in which individuals contribute after-tax income and qualified withdrawals are not taxed
roth IRA
what is a contract with an insurance company that provides regular income for a set period of time
annuity
What is it that consists of the assets and liabilities a person leaves when he or she dies
an estate
what is the active management of assets with directives for managing and distributing them when the owner dies
Estate planning
Who is a person appointed to carry out the terms in someones will
executor
what is the legal document stating a person wishes for his/her estate after death
will
