unit 2 Flashcards
Checking account
an account at a bank against which checks can be drawn by the account depositor.
Savings account
a bank account that earns interest.
Balance
the amount of money held in a bank account at a given moment
Credit card
A credit card is the most common way to access a line of credit.
Debit card
is a payment card that deducts money directly from a consumer’s checking account to pay for.
Deposit
Bank deposits consist of money placed into banking institutions for safekeeping.
Direct deposit
Direct deposit is a payment option where your funds are electronically transferred to your checking or savings account.
Withdraw
the concerted action of depositors who try to withdraw their money from a bank because they think it will fail.
loan
an amount of money loaned at interest by a bank to a borrower, usually on collateral security, for a certain period of time.
Earnings
Earnings are the amount of profit that a company produces during a specific period.
Interest
Interest in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor.
Fee
bank fees refers to any charges imposed by financial institutions on their personal and business customers for account set-up, maintenance, and minor transactional services.
Transaction
the set of instruments and services that a bank offers to trading partners to financially support their reciprocal exchanges of goods, monetary flows, or commercial papers.
Identity theft
a type of fraud where a thief uses your personal information, such as your Social Security number or bank account number, to open accounts or initiate transactions using your name.
Debt
a group of loans that a corporation must repay to a bank.
Transfer
is when money is sent from one bank account to another.
Compound interest
is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.
Charge
it covers all charges and fees made by a bank to their customers.
Personal change
known as consumer banking or personal banking, is banking that provides financial services to consumers as individuals not businesses.
Penalty
refers to any penalty incurred by an individual for early withdrawal from an account that is either locked in for a stated period, as in a time deposit at a financial institution
budget
an estimate of income and expenditure for a set period of time.
total
the whole number or amount of something.
value
represents all the banks and financial institutions that use money to deliver economic, social, and environmental development
income
it measures the balance between bank operating revenues and expenses
gross income
is the total revenue minus the cost of goods sold.
net income
is the amount an individual earns after subtracting taxes and other deductions from gross income.
sales tax
a consumption tax imposed by the government on the sale of goods and services.
Deduction
A deduction leads to a tax saving for the individual investor. Keywords. Bank Fixed Deposits.
Coupon
is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity
discount
interest computed on the face value of a loan and deducted in advance from the loan by the lending bank.
price
A bank rate is the interest rate at which a nation’s central bank lends money to domestic banks
price range
it’s a security trades over a given period of time.
unit price
is the total expenditure incurred by a company to produce, store and sell one unit of a particular product or service.
sale
is a transaction between two or more parties, typically a buyer and a seller, in which goods or services are exchanged for money or other assets.
credit score
a number assigned to a person that indicates to lenders their capacity to repay a loan.
