Con. Ed.

False; only members and nonprofit

A credit union is a financial institution that serves individuals and businesses with a wide variety of accounts

Compound

Earning interest on the principal and any previously earned interest

Credit Unions

Financial institutions that offer memberships to people who share a common bond, such as people in a particular profession, company, or labor union are...

A Certified Check

Next Wednesday Tracy and Jon will close on the home they are buying. At the closing, they will sign several legal documents and provide the mortgage company with a $15,000 down payment. Tracy and Jon do not want to carry that much cash with them; the mortgage company will not accept their personal check for that large sun of money. What can they obtain in advance to make the 15,000 dollar down payment

$780.00

Silas deposited $750 in a savings account that pays 4% simple interest. How much money will he have in the account after one year

True

Simple interest is earned on just your principal, not on the interest earned previously

FDIC

The name of the government-created organization that provides insurance and security for money deposited in the bank

reconciling

The process of comparing the account statement to your check stubs or register to make sure they match.

True

When you save, you trade spending now for the ability to spend in the future

balance

the amount of money in an account at any given time

face value

the dollar value printed on a bond

Cashier's Check

A bank's own personal check signed by a bank employee is a...

APR or APY

A bank's report of actual interest rate on an account per year

True

A certified check guarantees that your account can cover the check

Traveler's Check

A check where you pay in advance and if they are lost or stolen the company from which you bought these checks will replace them

False; it is

A dividend is not actually a share of a company's profits

True

A popular way to transfer money electronically is through an automated teller machine (ATM)

endorsement

A signature or stamp on the back of a check transferring ownership

Bond

A written promise to pay a debt by a specified date is called a...

Deposit

Adding money to your checking account

True

Almost all deposits are insured by a federal government agency

Electronic Funds Transfer (ATM, wire transfer)

An electronic communication that moves money from an account in one bank to an account in a different bank is an...

A treasury Bill

As a real estate agent Allegra receives monthly commission checks. This month her commission check will be over $5,000. She wants to place the entire $5,000 in a safe investment for six months. Given the amount she has to invest and her preferences, what would be her best choice?

Credit Union

As a school teacher, Liz can choose to join a financial institution with other school employees that offers her a membership when she deposits her money there or opens a checking account. This type of financial institution is known as a...

Safe Deposit Box

Banks provide a place for you to keep your non cash items, also known as a...

False; always

Banks usually send you reports of your checking account activity each month

A Wire Transfer

Bryce is the business manager for a large dress-making company in New York City. His company just sold $125,000 worth of dresses to a company in Germany. What type of banking arrangement can the German company make with its bank to immediately move $125,000 of its moeny into the New York company's bank in order to pay for the dresses

True

Checks provide safety, convenience, and written records of transactions

Savings Bank

Coop lives in a city where there are several types of financial institutions from which to choose. He has $5,000 to deposit. He would prefer to own part of the institution where he makes his deposit in order to receive dividends. Which institution matches his preferences

Canceled

Each month Hope receives from her bank her bank statement and the checks that have cleared her checking account in that month. Each of these checks has been stamped to show that her bank has paid the check. What are these checks called

Automatic Withdrawal

Having the bank deduct a certain amount from your checking account each month to pay a bill is an...

A post office, A credit union, a savings and loan association

If Reilly wants to purchase U.S. government savings bonds, where can he go to purchase them

Simple Interest

Interest paid annually at the end of the year on the average balance in a savings account is...

Compound Interest

Interest that is paid on the principal and on previously earned interest, assuming that the interest is left in the account is called...

False; Never

It is wise to give your PIN number to a few close friends

Savings and Loan Associations

Lucas and Jewel have a down payment for a home and have found the home they want to purchase. Which type of financial institutions specializes in lending money to consumers to buy homes

True

Money market accounts pay higher interest rates than regular savings accounts do

Third-Party Check

Muong is about to graduate from high school. He plans to attend community college in the fall. To help him with some of his expenses, many of his relatives are giving him cash as a graduation present. His great aunt, however, gave him a check for $200. Since Muong does not have a checking account he will give the check to his mother, Fay, to cash. On the back of the check, he signs his name; immediately under his signature he writes, "Pay to the order of Fay Nguyen."This type of check is known as a....

His Debit Card

Octavio often travels on business. While he is traveling he does not like to carry a large amount of cash with him and worried that a store might not take his personal check. What could he use that would provide electronic access to his checking account to make payments at stores, restaurants, etc., by immediately transferring funds from his account to the store's account

more interest than what they pay on amounts in savings accounts

On money loaned, banks charge...

currency

Paper money and coins used for financial transactions

There are no cost associated with using checking accounts

Stuart's economic teacher asked him to research the advantages of using a checking account to pay bills instead of using cash. What is NOT an advantage

Direct Deposit

Taylor works as a real estate agent and is an extremely busy woman. With her schedule it is almost impossible for her to go to her bank to do her banking business. What service can she arrange with her employer and her bank to have her paycheck deposited into her account each pay period

$250,000

The FDIC insures bank deposits in most banks up to a maximum of...

Interest

The amount of money that a bank pays its customers for keeping their money in a savings account

Check Register

The book in which a person keeps a record of the checks he or she has written and the deposits made is called a...

Check register

The book in which you keep records of checks, deposits, debit card transactions, and ATM withdrawals.

True

The difference in the interest charged by banks on loans and the interest paid on money deposited is the bank's income

True

There are many compound interest calculators available on the World Wide Web

Bartering

Trading goods and services without using money is...

Principal

Vikki placed $3,000 in a certificate of deposit for a one-year period of time. At the end of the year she had earned $150 in interest on her investment. Her original $3,000 is known as...

False; doesn't have to be all or any of it

When you receive a check, you must deposit all of it in your own checking account

I-bond

a savings bond issued by the U.S. Treasury that protects investors from inflation or purchasing power risk

penalty

early withdrawal on a CD is usually subject to a...

annually, daily, quarterly

interest rates can be compounded...

False; right away

it is good policy to record a checking transaction as soon as you can find the time

HH bond

pays a fixed interest rate that is sent to their bank account electronically every six months

Offered by any savings institution, a place in which you can deposit money, a way you can earn interest

savings accounts are...

Face Value of the Bond

the dollar value printed on a bond is the...