BANKING PAST AND PRESENT QUIZ NO.1

A years-long record of how well a person pays their bills and is financially responsible is called a

credit history

Collateral is something given to guarantee repayment of a loan.

true

Having a good credit history tells the lender that you pay your bills on time and use credit wisely.

true

Local banks offer educational loans.

true

If someone has "A" type credit, it mean what?

They have a good, strong credit history.

Any property that may cover a person's liabilities Repayment of loan is guaranteed by an asset A bank official who will oversee the approval or denial of a loan Stretching one's credit beyond the financial guidelines

assets secured loan loan officer overextending

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

Overhead fees include fees to cover the costs of processing the ATM records and obtaining the money for the borrower.

false

PIN stands for Personal _____ number

identification

Charges that your bank must pay if you use an ATM that is "foreign," meaning not owned by your bank are called

interchange fees

A percentage of the amount in the savings account which is a reward for the bank's use of the money Also known as CDs; they may be for various amounts of time A medieval group that guarded valuables, negotiated loans, and transported money between nations A set percentage of the deposited amount that will be given to the depositor The limit on the amount given A deposit that gives a certain amount of interest in a specified amount of time A journal of the interest activity a depositor is earning by keeping his money in the savings account The amount a savings account will earn on interest in the course of a calendar year Person who puts his money into a savings account at a bank

interest time deposit knight templars interest rate ceiling certificates of deposit passbook savings account annual return depositor

Which of these statements is NOT true?

not true: Monthly commitments are regularly mailed accounts of your bank transactions and financial activity. true: A password is a coded word or number used to provide security to the cardholder. Surcharges are added fees for various services. Banks normally levy ATM surcharges only on customers of other banks. The program to access to find out about your personal account balances is called an inquiry.

A home loan is considered a(n) ____ loan

secured

This means paying back the loan is guaranteed by an asset like a piece of real estate.

secured loan

The bank makes a profit by collecting loan fees and the interest the customer pays on the loan, called

servicing fees

There is a limit to how much you may withdraw from an ATM; some banks allow you up to $200 to $300 per day.

true

There was once a time when banks were not allowed to merge or even expand outside their county.

true