Economics Unit 5 Quiz 1
What is the MOST important quality to have when applying for a loan?
"A" type credit
strong credit history that gives the bank good reason to approve the loan
"A" type credit
If Wild Westbank, the ATM owner, levies a $1.50 surcharge, then your $20 withdrawal will appear on your receipt as _______, even though all you received was _______ .
$21.50, $20.00
The idea of banking was well accepted in society among nobles, but it was not until the mid _____ that the Riksbank in Sweden and the Bank of England made commercial banking available to the public.
1600s
In ____ the Depository Institutions Deregulation and Monetary Control Act loosened many governmental controls including the elimination of interest-rate ______ on savings and time deposits.
1980, ceilings
Since the 1960 _________ Act and various antitrust laws were enacted, we do not have to worry about "super banks" monopolizing the market and controlling interest rates.
Bank Merger
Local banks offer what kind of loans?
Educational, unsecured, residential mortgage, and commercial real estate.
PIN stands for Personal ___________ Number
Identification
a set percentage of the deposited amount that will be given to the depositor
Interest rate
a medieval group that guarded valuables and negotiated loans as well as transported money
Knights Templars
current balances on checking, savings, and other accounts you may have in your bank
account balance info
Local banks do not offer _______ loans.
automobile for government
the limit on the amount given
ceiling
statement that a sum has been deposited for amounts of time, sometimes at a higher rate of interest
certificate of deposit
something given to guarantee repayment of a loan
collateral
a years-long record of how well a person pays their bills and is financially responsible
credit history
borrowing money from the bank for college tuition or other higher education expenses
educational loan
What are THREE services provided by ATM's?
favorable exchange out of country, 24/7 access to cash, transfer money between accounts
charges that your bank must pay if you use an ATM that is not owned by your bank
intercharge fee
Charges that your bank must pay if you use an ATM that is "foreign," meaning not owned by your bank are called:
intercharge fees
a percentage of the amount in the savings account which is a reward for the bank's use of the money
interest
There was once a time when banks were not allowed to _____ or even ______ outside their county.
merge, expand
regular mailed account of your bank transactions and financial activity
monthly statement
What is it called when one stretches their credit beyond the financial guidelines?
overextending
Many foreign ATMs may limit your transactions to your ________ account, and may limit your withdrawal amounts.
primary
the job of putting loan applications into official consideration
processing a loan
A car loan is considered a(n) __________ loan.
secured
A(n) ________ loan means your paying back the loan is guaranteed by an asset like a piece of real estate.
secured
The bank makes a profit by collecting loan fees and the interest the customer pays on the loan; these are called ________ fees.
servicing
added fees for various services
surcharges
Credit cards are considered __________ debt.
unsecured
A _______ is a tangible way to see what you are saving.
passbook
Banks normally levy ATM ________ only on customers of other banks.
surcharges
a deposit that gives a certain amount of interest in a specified amount of time
time deposit
