Government part 10

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.

1600s

annual return The amount a savings account will earn on interest in the course of a calendar year. ceiling The limit on the amount given. certificate of deposit Statement that a sum has been deposited for amounts of time, sometimes at a higher rate of interest. depositor Person who puts his money into a savings account at a bank. interest 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. Knights Templars A medieval group that guarded valuables, negotiated loans, and transported money. passbook savings account Journal of the interest activity a depositor is earning by keeping his money in the savings account. time deposit A deposit that gives a certain amount of interest in a specified amount of time.

A-type credit Strong credit history that gives the bank good reason to approve the loan. asset Any property, such as land or stock, that may cover a person's liabilities. collateral Something given to guarantee repayment of a loan. credit history A year-long record of how well a person pays her bills and shows her financial responsibility educational loan Borrowing money from the bank for college tuition or other higher education expenses. loan application A form making the request for a stated amount of money, filled out prior to meeting with a loan officer. loan officer A bank official who will oversee the approval or denial of a loan. overextending Stretching one's credit beyond the financial guidelines. 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. processing a loan The job of putting loan applications into official consideration. servicing fee Charges such as loan fees and the interest the customer pays on the loan.

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

PIN stands for Personal Number.

Identification

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

passwork

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(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

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

sponsors

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

A credit union is a financial institution.

true

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

true

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

true

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

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

Savings and loan association

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

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

overextending

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

Credit cards are considered debt.

unsecured

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

interchange fees

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

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

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

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

US dollars

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

installments

Which statement is NOT true?

Local banks offer automobile loans for the government.

automated teller machine A computerized device that provides readily accessible cash to those who are eligible. inquiry The program to access to find out about your personal account balances. interchange fee Charges that your bank must pay if you use an ATM that is not owned by your bank. monthly statement Regular mailed account of your bank transactions and financial activity. password Coded word or number used to provide security to the cardholder. surcharges Added fees for various services. versatile Capable of doing many things at once; multi-faceted.

annual Once a year. credit union Financial cooperative that provides loans to members at lower rates of interest. installment payments Paying on a regular basis at a set time each month or parts of a year. quarterly Four times a year. residential mortgage loans Loans that are assisting non-commercial purposes; they help people buy houses. savings and loan Give less products than a bank would, but better returns on the money put into their accounts. semi annual Twice a year. serial association Would find new ways of financial assistance rather than closing after a completed project. share One of the equal parts divided up by a corporation.

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

commercial banks, savings and loan associations, investment banks

cooperative A joint economic activity that is owned and operated by those who use its services. credit union Provides loans to its members at lower rates of interest than would be available at other institutions. direct deposit Paycheck electronically transferred into depositor's account. federal-chartered Registered with the United States government. field of membership Range of eligibility for a credit union, such as a teacher's credit union or bricklayer's credit union. payroll The amount of wages due to a worker. sponsor Overseer who approves, condones, and assists in formation and continuation of a credit union. state-chartered Registered with the state in which the credit union resides.

debit card A card that acts like a check at a purchase; the money is removed from your account immediately. denomination information The amount of the traveler's check, such as $10 or $20. inventory A detailed list of things on hand or in possession. issuing bank or agency The place where you bought the traveler's checks. refund policy Regulations that define how and when you get repaid in case of theft or misplacement. serial number Specific number for the purpose of verification and location in case of theft or misplacement. traveler's check Checks which function almost like cash but are replaceable if lost or stolen. Travel Money card Considered a "plastic traveler's check." It is functional at an ATM and as a debit card.