Economics Test 5

Traveler's checks function almost like ______________

cash

something given to guarantee repayment of a loan

collateral

__________________________________________ is the job of putting loan applications into official consideration

Processing a loan

"Not for ________________, not for charity, but for ___________________" is a credit union motto.

Profit Service

Which statement is NOT true?

Semiannual means once every two years.

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

They have a good, strong credit history

Which statement is true?

Traveler's checks are easy to use; they are broken down into denominations such as $20, $50, and even $500 and $1000.

If your credit union is registered with the United States government, it is known as being "federal-chartered."

True

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

interest

a set percentage of the deposited amount that will be given to the depositor

interest rate

a medieval group that would guard valuables, negotiate loans, and transport money between nations

knights templars

a form making the request for a stated amount of money

loan application

stretching one's credit beyond the financial guidelines

overextension

Many employers offer direct deposit of ___________________ to a credit union.

payroll

For college tuition or other higher education expenses

education loan

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

Oxford Provident was started to fill a need that commercial banks were overlooking: individuals who wanted to ________________________________

Buy a house

Which type of financial institutions serve groups of people that share something common, such as where they work or live?

Credit union

All states in the U.S have rules which set limits on how much an ATM surcharge can be.

False

Auto loans are a type of unsecured loan

False

PIN stands for Personal ________________________________ Number

Identification

Which of these statements is NOT true?

If Wild Westbank, the ATM owner, levies a $1.50 surcharge, then your $20 withdrawal will appear on your receipt as $21.50, even though all you received was $18.50.

In a credit union, people are not only borrowers and depositors, they are ____________________________

Members

the amount a savings account will earn on interest in the course of a calendar year

annual rate

If Mr. and Mrs. Walker want to buy a building and property for their upholstery business, they would apply for a real ___________________________ estate loan.

commercial

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

credit history

person who puts his money into a savings account at a bank

depositor

Under the __________________________, your lost or stolen traveler's checks are replaceable when you provide the refund office the serial numbers and exactly which checks you have cashed or lost.

refund policy

your paying back the loan is guaranteed by an asset like a piece of real estate

secured loan

loan fees and the interest the customer pays on the loan

servicing fees

An overseer who approves, condones, and assists in the formation and continuation of a credit union is known as a _______________________

sponsor

can allow withdrawals up to $200 or $300 a day

ATM

The Depository Institutions Deregulation and Monetary Control Act ___________________________ interest-rate ceilings on savings and time deposits.

eliminates

a deposit that gives a certain amount of interest in a specified amount of time

time deposit

credit cards are considered:

unsecured debt