Did
Located in 2 places on a check used to help the account holder keep track of transactions and outstanding checks
Check number
A short term loan in which he borrower's vehicle title us used as collateral
Car loan
Electronic funds that are deposited into your bank account rather than through a paper check
Direct deposit
A check that cannot be processed because the account holder does not have enough money in the account to cover the transaction
Bounced check
A printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account
Bank statement
A unique number that identifies a specific federal or state chartered bank or savings institution
ABA/Routing number
The amount of money in a financial repository, such as a checking account, at any given moment
Account balance
The smallest amount an account holder can have without paying a fee on the account
Minimum balance required
A charge to cash a check
Check cashing fee
A type of loan in which the borrower pledges an asset as recourse to the lender in the event that the borrower defaults on the initial loan
Collateralized loan/Secured loan
What is the most liquid account?
Checking Account
What is the least liquid account?
CD
What is one advantage of direct deposit?
You receive your money sooner.
What organization insures money in banks?
FDIC
What organization insures money in credit unions?
NCUA
Why do banks put a "hold" on a check?
The check is large and the bank wants to make sure it gets the money before releasing it to you.
This alternative financial institution deals in appliances, furniture, televisions, and CD systems.
Rent-to-Own Store
What is an overdraft fee?
a fee that is charged by a bank when your checking account balance goes below zero
A type of account that pays the account holder interest based on the current rates in the market. It typically pays a higher interest rate than a savings account.
Money Market Account
Name a characteristic of a Credit Union.
They are non-profit, membership required, NCUA insured.
The comparison of a bank statement to a check register to look for outstanding transactions and errors
Reconciling your bank statement
When James received his paycheck, he planned to cash it at a check cashing store. You advise him to cash it at his own bank if possible. Why?
Check cashing stores usually charge high fees.
The term used to describe the ease and speed with which you can convert savings or an investment to cash
Liquidity
A checking account that waives the minimum balance requirement and doesn't charge other fees to hold the account
Free checking
Why would a smart person keep at least $100 balance in their checking account at all times?
You never know when unexpected fees or expenses will come up. You can forget to write down a payment.