Ch 4 and 5 fin1100

Steps to writing a check

1. Record date 2. Write person receiving funds 3. Write the amount down in numbers 4. Write amount in words 5. Sign check 6. Note reason for check

A regular savings account usually does not have

A high balance, A high rate of interest, and overdraft protection

interest

A sum paid or charged for the use of money or for borrowing money

Annual percent yield is commonly expressed as

APY

3 major credit bureaus

Equifax, Experian, TransUnion

Money Order

Guarantees payment

Signature card

Includes the signatures of each person authorized to sign checks on the bank account.

An ATM is also called a ______ machine

Money

Some tax advantages of EE bonds

No federal income tax until redeemed and interest is exempt from state and local taxes

Fair Credit Billing Act

Provides consumers with a means to dispute a billing error on open-ended credit accounts (credit and charge cards)

Which of the following deposit-type institutions serve as financial intermediaries?

Savings and loans, Commercial banks, Credit unions

A money market fund is a

Savings instrument

FICO score

Score of credit history

credit bureau

company that collects information about your credit history to see how properly you pay your bills

share accounts are typically offered by

credit unions

Line of credit

the maximum amount of money a creditor will allow a credit user to borrow

Consumer credit

the use of credit for personal needs excluding mortgage

If inflation is 3%, a saver would want to earn an interest rate greater than..

3%

how many years does credit history remain on file if you have not declared personal bankruptcy

7

Redeemed EE bonds can avoid federal taxation if

used to pay college tuition and fees

Mutual savings bank

a financial institution that is owned by depositors and specializes in savings accounts and mortgage loans

Money market fund

a savings-investment plan offered by investment companies, with earnings based on investments in various short-term financial instruments

capacity

ability to meet credit obligations

Chapter 5 terms

Chapter 5 Definitions