Vocabulary Week 7

Question 1

Annual Percentage Rate (APR)

Answer 1

the consumer’s interest rate over a course of the year

Question 2

Buying Power

Answer 2

a synonym for purchasing power; the ability for your money to go towards goods and services

Question 3

Compound Interest

Answer 3

interest earned on interest; this grows at a faster rate than simple interest and is usually seen on investments

Question 4

Federal Reserve Bank

Answer 4

a federal government agency that focuses on setting mortgage interest rates; responsible for keeping the value of money

Question 5

ABA Number/ Check Routing Number

Answer 5

the routing number is the first number at the bottom of a check; ABA number is another way to say checking account number

Question 6

ATM Card

Answer 6

another term for debit card; uses a pin with a four-digit code that has access to your bank account

Question 7

ATM Card

Answer 7

another term for a debit card; uses a pin with a four-digit code that has access to your bank account

Question 8

Automatic Bill Payment Services

Answer 8

a method to let your bank know to send out checks at the correct time to your bills

Question 9

Account Balance

Answer 9

otherwise known as bank principal; shows the amount of money in your account

Question 10

Banks

Answer 10

a financial institution that is responsible for writing mortgages as well as operating checking and savings accounts

Question 11

Bank Statement

Answer 11

shows all of the moneyflow in and out of your checking account

Question 12

Bounced Check

Answer 12

making sure that what you write out in checks matches the money-flow out on the checking account in the bank statement

Question 13

Car Loan

Answer 13

a loan from the bank or other financial institution to buy a car

Question 14

Cash loan

Answer 14

a loan that is designed to give you cash on hand; be aware that these loans have really high-interest rates and should be stayed away from

Question 15

Cashiers Check

Answer 15

always comes from a bank and is a guaranteed form of payment; this means that the check will not bounce

Question 16

Certificate of Deposit (CD)

Answer 16

a specialized savings account that owns a higher interest rate than a regular savings account; this account is not liquidable

Question 17

Liquidity

Answer 17

the speed with which an asset can be converted into cash

Question 18

Certified Check

Answer 18

a synonym for a cashiers check; this has to come from a bank and is a guaranteed form of payment

Question 19

Check Cashing Centers

Answer 19

institutions that offer services to manipulate cash into other cash forms; have high interest rates

Question 20

Check Cashing Fee

Answer 20

the payment in order to utilize check cashing centers for the manipulation of various cash forms

Question 21

Check Fraud

Answer 21

the act of a consumers purposefully bounce a check that they know is not actually in the account

Question 22

Check Number

Answer 22

lets you know which number of check is in the compilation of checks in the checkbook; located in the upper right corner of a check

Question 23

Check Register

Answer 23

a synonym for a checkbook and is utilized in order to bounce the checks with the bank statements

Question 24

Check Stub

Answer 24

proof that you - as consumer - wrote a check to whom you payed

Question 25

Check

Answer 25

a less common form of payment generally utilized to pay for large items such as homes

Question 26

3 C’s of Credit (Collateral, Capacity, and Character)

Answer 26

these determine whether or not a consumer is capable and has the capacity to repay a loan or take out credit such as a credit card