Q/Government and Economics - Unit 10: Banking

If you vacation to foreign countries, it is usually best to purchase traveler's checks in ________.

U.S. dollars

What are THREE services provided by ATM's?

You can deposite, withdraw, and move money between your accounts at most ATM.

time deposit

a deposit that gives a certain amount of interest in a specified amount of time

credit union

a financial cooperative that provides loans to its members at lower rates of interest

Knights Templars

a medieval group that guarded valuables and negotiated loans as well as transported money

interest

a percentage of the amount in the savings account which is a reward for the bank's use of the money

interest rate

a set percentage of the deposited amount that will be given to the depositor

credit history

a years-long record of how well a person pays their bills and is financially responsible

surcharges

added fees for various services

building and loan association

another name for savings and loan association, originally built to assist first-time home-buyers

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

bank merger

educational loan

borrowing money from the bank for college tuition or other higher education expenses

Oxford was started to fill a need that commercial banks were overlooking: individuals who wanted to _ .

buy a home

Traveler's checks function almost like _ .

cash

In 1980 the Depository Institutions Deregulation and Monetary Control Act loosened many governmental controls including the elimination of interest-rate _ on savings and time deposits.

ceiling

interchange fee

charges that your bank must pay if you use an ATM that is not owned by your bank

A credit union is a _ financial institution.

cooperative

account balance information

current balances on checking, savings, and other accounts you may have in your bank

The amount of the traveler's check, such as $10 or $20, is the:

denomination information

A paycheck is electronically transferred into the depositor's account without the depositor having to come to the physical location of the credit union office. This is called a:

direct deposit

A contribution is a financial cooperative that provides loans to its members at lower rates of interest than would be available at other institutions.

false

Any property, such as land or stock, that may cover a person's liabilities is called his income.

false

Tim can take out a car loan from his SLA.

false

You may have made a purchase with your credit or debit card at a store and were asked by a store clerk if you wish to have cash above the amount of your purchase. If you say "yes," you will be charged a fee for that cash.

false

serial association

form of savings and loan; found new ways of financial assistance rather than closing

quarterly

four times a year

PIN stands for Personal _ Number.

indentification

SLAs pay earnings in regular _ to their members, but continue to finance homes and charge interest

installments

savings and loan

institutions that give less products than a bank would, but make up for it by giving better returns

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

interchange fees

residential mortgage loan

loans that are assisting non-commercial purposes; they are helping people buy houses

annual

once a year

share

one of the equal parts divided up by a corporation

What is it called when one stretches their credit beyond the financial guidelines?

overextending

A _ is a tangible way to see what you are saving.

passbook

installment payments

paying on a regular basis at a set time each month or parts of a year

Many foreign ATMs may limit your transactions to your _ account, and may limit your withdrawal amounts.

primary

"Not for _ , not for charity, but for _ " is a credit union motto.

profit,service

Under the _ , your lost or stolen traveler's checks are replaceable when you provide the refund office the serial numbers and exactly which checks you have cashed and lost.

refund policy

monthly statement

regular mailed account of your bank transactions and financial activity

SLAs are institutions that give fewer products than a bank would, but make up for it by giving better returns on the money put into their accounts.

true

The housing industry depends on the SLA for continued growth.

true

There may be fees for cashing traveler's checks.

true

There was once a time when banks were not allowed to merge or even expand outside their county.

true

semiannual

twice a year

Credit cards are considered _debt.

unsercured

Which statement is NOT true?

Local banks offer automobile loans for the government.

The Oxford Provident Building Association was the first ________ to form in America.

Savings and loan association

What is the MOST important quality to have when applying for a loan?

"A" type credit

The idea of banking was well accepted in society among nobles, but it was not until the mid _ that the Riksbank in Sweden and the Bank of England made commercial banking available to the public.

1600s

If Wild Westbank, the ATM owner, levies a $1.50 surcharge, then your $20 withdrawal will appear on your receipt as _, even though all you received was_ .

21.50,20

Which financial institutions are owned by stockholders and exist to make a profit?

Commercial banks Savings and loan associations Investment banks

A(n) _ loan means your paying back the loan is guaranteed by an asset like a piece of real estate.

secure

A car loan is considered a(n) _ loan.

secured

The bank makes a profit by collecting loan fees and the interest the customer pays on the loan; these are called _ fees.

servicing

collateral

something given to guarantee repayment of a loan

Credit unions serve groups of people that share something in common, such as residing in the same community.

sponsors

certificate of deposit

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

A-type credit

strong credit history that gives the bank good reason to approve the loan

processing a loan

the job of putting loan applications into official consideration

ceiling

the limit on the amount given

A cooperative is a joint economic activity that is owned and operated by those who use its services.

true

A cooperative means, in effect, that the people cooperate in order to make the institution a success.

true

Anyone wanting to join should see if their employer_ a credit union.

true

Banks normally levy ATM surcharges only on customers of other banks.

true