Personal Finance chapter 7
savings and loan associations
Problematic financial businesses include each of the following EXCEPT
bank failure
The Federal Deposit Insurance Corporation insures depositors against losing the money in case of a ________
False
A finance company specializes in savings accounts and mortgage loans.
False
A prepaid hone card is an example of a debit card.
False
A savings and loan association is a financial institution that is owned by its members
True
A stop-payment order is a request that a bank or other financial institution not cash a particular check.
False
According to the Truth and Savings Law, Financial institutions have a guarantee you a minimum interest rate on your deposits.
lower fees and loan rates
Compared with commercial banks, credit unions generally offer______
$106.18
If you deposit $100 in an account with an annual interest rate of 6% compounds monthly after 12 months you will have
Money market
In Which kind of springs plan does the interest rate vary from month to month
True
Money in a checking account is called a demand deposit
True
Overdraft protection is an automatic loan made to an account if the balance will not cover the checks written.
comparing checks in the check record with this on the statement
The first step in balancing a checkbook is
completing a monthly ban reconciliation
To earn high interest rates n a certificate of deposit, you mist accept all the following limitations EXCEPT.
an endorsement on the back
When writing a check include all of the following EXCEPT
debit card
a card issued by a financial institution that allows you to withdraw money form you account or pay for purchases by deducting funds directly form you account
credit union
a nonprofit financial institution that is owned by its members and organized for their benefit
False
a restrictive endorsement allows you to transfer a check to an organization or another person
money market account
a savings account in which the interest rate vares as market rates change.
Direct deposite
an automatic deposit of an employee's paycheck onto a designated bank account
borrow money for a short term
credit cards allow you to ________
commercial bank
for-profit institution that offers a full range of financial services.
False
pawnshops will offer payday loans with high finance charges to desperate borrowers.
certificate of deposit
savings alternative in which money is left on deposit for a states amount of time to earn a specific rate of return
annual percentage yield
the amount of interest that a financial institution would pay on a $100 deposit, after computing for one year.
rate of return
the percentage of increase in the value of savings from earned interest
compounding
the process in which interest is earned both the principal and any perviously earned interest.
endorsement
the signature of a payee on the back of a check
False
you can write checks from a money-market account
