unit 2

Question 1

Checking account

Answer 1

an account at a bank against which checks can be drawn by the account depositor.

Question 2

Savings account

Answer 2

a bank account that earns interest.

Question 3

Balance

Answer 3

the amount of money held in a bank account at a given moment

Question 4

Credit card

Answer 4

A credit card is the most common way to access a line of credit.

Question 5

Debit card

Answer 5

is a payment card that deducts money directly from a consumer’s checking account to pay for.

Question 6

Deposit

Answer 6

Bank deposits consist of money placed into banking institutions for safekeeping.

Question 7

Direct deposit

Answer 7

Direct deposit is a payment option where your funds are electronically transferred to your checking or savings account.

Question 8

Withdraw

Answer 8

the concerted action of depositors who try to withdraw their money from a bank because they think it will fail.

Question 9

loan

Answer 9

an amount of money loaned at interest by a bank to a borrower, usually on collateral security, for a certain period of time.

Question 10

Earnings

Answer 10

Earnings are the amount of profit that a company produces during a specific period.

Question 11

Interest

Answer 11

Interest in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor.

Question 12

Fee

Answer 12

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.

Question 13

Transaction

Answer 13

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.

Question 14

Identity theft

Answer 14

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.

Question 15

Debt

Answer 15

a group of loans that a corporation must repay to a bank.

Question 16

Transfer

Answer 16

is when money is sent from one bank account to another.

Question 17

Compound interest

Answer 17

is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.

Question 18

Charge

Answer 18

it covers all charges and fees made by a bank to their customers.

Question 19

Personal change

Answer 19

known as consumer banking or personal banking, is banking that provides financial services to consumers as individuals not businesses.

Question 20

Penalty

Answer 20

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

Question 21

budget

Answer 21

an estimate of income and expenditure for a set period of time.

Question 22

total

Answer 22

the whole number or amount of something.

Question 23

value

Answer 23

represents all the banks and financial institutions that use money to deliver economic, social, and environmental development

Question 24

income

Answer 24

it measures the balance between bank operating revenues and expenses

Question 25

gross income

Answer 25

is the total revenue minus the cost of goods sold.

Question 26

net income

Answer 26

is the amount an individual earns after subtracting taxes and other deductions from gross income.

Question 27

sales tax

Answer 27

a consumption tax imposed by the government on the sale of goods and services.

Question 28

Deduction

Answer 28

A deduction leads to a tax saving for the individual investor. Keywords. Bank Fixed Deposits.

Question 29

Coupon

Answer 29

is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity

Question 30

discount

Answer 30

interest computed on the face value of a loan and deducted in advance from the loan by the lending bank.

Question 31

price

Answer 31

A bank rate is the interest rate at which a nation’s central bank lends money to domestic banks

Question 32

price range

Answer 32

it’s a security trades over a given period of time.

Question 33

unit price

Answer 33

is the total expenditure incurred by a company to produce, store and sell one unit of a particular product or service.

Question 34

sale

Answer 34

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.

Question 35

credit score

Answer 35

a number assigned to a person that indicates to lenders their capacity to repay a loan.