Econ unit 4
What is the MOST important quality to have when applying for a loan?
"A" type credit
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
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.
1600's
loan officer
A bank official who will oversee the approval or denial of a loan.
debit card
A card that acts like a check at a purchase; the money is removed from your account immediately.
automated teller machine
A computerized device that provides readily accessible cash to those who are eligible.
time deposit
A deposit that gives a certain amount of interest in a specified amount of time.
inventory
A detailed list of things on hand or in possession.
asset
Any property, such as land or stock, that may cover a person's liabilities.
educational loan
Borrowing money from the bank for college tuition or other higher education expenses.
Tim can take out a car loan from his SLA.
False
PIN stands for Personal __________ Number.
Identification
passbook savings account
Journal of the interest activity a depositor is earning by keeping his money in the savings account.
payroll
The amount of wages due to a worker.
building and loan association
another name for savings and loan association, originally built to assist first-time home-buyers
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
A car loan is considered a(n) ________ loan.
secured
A home loan is considered a(n) _____ loan.
secured
A(n) __________ loan means your paying back the loan is guaranteed by an asset like a piece of real estate.
secured
The bank makes a profit by collecting loan fees and the interest the customer pays on the loan; these are called __________________ fees.
servicing
The bank makes a profit by collecting loan fees and the interest the customer pays on the loan, called
servicing fees
Anyone wanting to join should see if their employer ______ a credit union.
sponsors
Credit cards are considered _________ debt.
unsecured
loan application
A form making the request for a stated amount of money, filled out prior to meeting with a loan officer.
cooperative
A joint economic activity that is owned and operated by those who use its services.
Knights Templars
A medieval group that guarded valuables, negotiated loans, and transported money.
Which of these statements are true?
A password is a coded word or number used to provide security to the cardholder. Surcharges are added fees for various services. Banks normally levy ATM surcharges only on customers of other banks. The program to access to find out about your personal account balances is called an inquiry.
Overhead fees include fees to cover the costs of processing the ATM records and obtaining the money for the borrower.
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
credit union
Financial cooperative that provides loans to members at lower rates of interest.
quarterly
Four times a year.
savings and loan
Give less products than a bank would, but better returns on the money put into their accounts.
residential mortgage loans
Loans that are assisting non-commercial purposes; they help people buy houses.
monthly statement
Regular mailed account of your bank transactions and financial activity.
refund policy
Regulations that define how and when you get repaid in case of theft or misplacement.
The Oxford Provident Building Association was the first ________ to form in America.
Savings and loan association
This means paying back the loan is guaranteed by an asset like a piece of real estate.
Secured loan
collateral
Something given to guarantee repayment of a loan.
serial number
Specific number for the purpose of verification and location in case of theft or misplacement.
certificate of deposit
Statement that a sum has been deposited for amounts of time, sometimes at a higher rate of interest.
ceiling
The limit on the amount given.
The housing industry depends on the SLA for continued growth.
True
There is a limit to how much you may withdraw from an ATM; some banks allow you up to $200 to $300 per day.
True
There was once a time when banks were not allowed to merge or even expand outside their county.
True
semi annual
Twice a year.
serial association
Would find new ways of financial assistance rather than closing after a completed project.
Oxford was started to fill a need that commercial banks were overlooking: individuals who wanted to
buy a home
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.
ceilings
A credit union is a ________ financial institution.
cooperative
A years-long record of how well a person pays their bills and is financially responsible is called a
credit history
account balance information
current balances on checking, savings, and other accounts you may have in your bank
SLAs pay earnings in regular ___________ to their members, but continue to finance homes and charge interest
installments
Charges that your bank must pay if you use an ATM that is "foreign," meaning not owned by your bank are called:
interchange fees
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
credit history
A year-long record of how well a person pays her bills and shows her financial responsibility
What are THREE services provided by ATM's?
ATM's allow you to deposit money, make loan payments, and withdraw money at all hours.
sponsor
Overseer who approves, condones, and assists in formation and continuation of a credit union.
direct deposit
Paycheck electronically transferred into depositor's account.
installment payments
Paying on a regular basis at a set time each month or parts of a year.
interest
Percentage of the amount in the savings account which is a reward for the bank's use of the money.
depositor
Person who puts his money into a savings account at a bank.
credit union
Provides loans to its members at lower rates of interest than would be available at other institutions.
field of membership
Range of eligibility for a credit union, such as a teacher's credit union or bricklayer's credit union.
overextending
Stretching one's credit beyond the financial guidelines.
If someone has "A" type credit, it mean what?
They have a good, strong credit history.
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
Banks normally levy ATM surcharges only on customers of other banks.
True
Collateral is something given to guarantee repayment of a loan.
True
Credit unions serve groups of people that share something in common, such as residing in the same community.
True
Which of these statements is NOT true?
Monthly commitments are regularly mailed accounts of your bank transactions and financial activity.
surcharges
Added fees for various services.
pre-qualification interview
An initial meeting to determine the ability of repayment of a loan; checking the credit history and financial stability of the loan applicant.
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
versatile
Capable of doing many things at once; multi-faceted.
servicing fee
Charges such as loan fees and the interest the customer pays on the loan.
interchange fee
Charges that your bank must pay if you use an ATM that is not owned by your bank.
Which financial institutions are owned by stockholders and exist to make a profit?
Commercial banks Savings and loan associations Investment banks
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
Which statements are true?
Local bank offer educational loans. Local banks offer unsecured loans. Local banks offer residential mortgage loans. Local banks offer commercial real estate loans.
Which statement is NOT true?
Local banks offer automobile loans for the government.
annual
Once a year.
password
Coded word or number used to provide security to the cardholder.
share
One of the equal parts divided up by a corporation.
annual return
The amount a savings account will earn on interest in the course of a calendar year.
denomination information
The amount of the traveler's check, such as $10 or $20.
inquiry
The program to access to find out about your personal account balances.
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
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.
issuing bank or agency
The place where you bought the traveler's checks.
Having a good credit history tells the lender that you pay your bills on time and use credit wisely.
True
Local banks offer educational loans.
True
interest rate
A set percentage of the deposited amount that will be given to the depositor.
federal-chartered
Registered with the United States government.
state-chartered
Registered with the state in which the credit union resides.
