Economics Ch. 5 Quiz #1

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

Annual return

Any property, such as land or stock, that may cover a person's liabilities

Asset

Since the 1960 ___________ and various antitrust laws were enacted, we do not have to worry about "super banks" monopolizing the market and controlling interest rates

Bank Merger Act

The limit on the amount given

Ceiling

Statement that a sum has been deposited for amounts of time, sometimes at a higher rate of interest

Certificates of deposits

Something given to guarantee repayment of a loan

Collateral

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

Credit history

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

Depositor

What do local banks offer?

Educational loans

The program to access to find out about your personal account balances is called an:

Inquiry

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

Interchange fees

% of the amount in the savings account which is a reward for the banks use of the money

Interest

A set % of the deposited amount that will be given to the depositor

Interest rate

A medical group that guarded the valuables, negotiated loans, and transported money

Knights Templars

There is a ______ to how much you may withdrawal from an ATM; some banks allow you up to ________________ per day

Limit;$200-$300

A bank official who will oversee the approval or denial of a loan

Loan officer

There was once a time when banks were not allowed to ...

Merge or even expand outside their county

A home loan is considered a ________ loan

Secured

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

Secured loan

The bank makes a profit by collecting loan fees and the interest the costumer pays in the loan, called _______________

Servicing fees

Added fees for various services

Surcharges

What does having a good credit history tell the lender?

That you pay your bills on time and use the credit wisely

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

They have a good strong credit history

A deposit that gives a certain amount of interest in a specific amount of time

Time deposit

When do banks normally levy ATM surcharges ?

To customers of other banks

Repayment of loan is guaranteed by an asset:

secured loan

Stretching ones credit beyond the financial guidelines

Overextending

Include fees to cover the costs of processing the ATM records and obtaining the money for the borrower

Overhead fees

Journal of the interest activity a depositor is earning by keeping his money in the savings account

Passbook savings account

A ______________ is a coded word or number used to provide security to the cardholder

Password

PIN stands for:

Personal Identification Number