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