Vocab that starts with a C
A written order to a bank to pay the stated amount to the person or business named from a certain amount.
Check
Automatic Deposit is.....
Money electronically added to your checking or another account.
A bank account that has more restrictions on how quickly or easily you can get your money in comparison to a checking account. This is the account where you save your money for emergency or long-term purchases and you will gain a little more interest.
Savings Account
Principal
A sum of money invested on which interest is paid. The original amount either deposited, taken out as a loan, or invested.
Money added to a checking, a savings, or another account
Deposit
A demand deposit account from which you can get your money quickly and easily. It is liquid. This is where most people keep their money that they use regularly with their debit card though they will not gain much interest from this account.
Checking account
Automatic withdrawal is....
Money electronically deducted from your checking or another account.
The rate banks are charged to borrow money from the Fed...
Discount Rate
A math formula that tells you how long it will take for your money to double at a certain rate.
Rule of 72
Explain a post-dated check.
A check written with a date in the future
An electronic or paper record in which you keep track of money spent and deposits made. Now we check this with our banking app to ensure there are no erroneous charges.
Checkbook register
A bank card that can be used to make purchases or withdraw money at an ATM.
Debit card
Actions of the Fed to influence money and credit conditions in the economy
Monetary policy
How do banks make money?
Fees and interest on loans
A check returned by the bank for insufficient funds
Bounced check
Interest earned on both principal and interest that was previously earned.
Compound interest
In order to cash or deposit a check, this must be present on the back.
Signature
The rate banks charge to their most creditworthy business customers
Prime Rate
Explain liquidity
How fast one can make an investment into cash.
Savings accounts are not as liquid as checking accounts.
The equation for simple interest is....
P X R X T
Principal X Rate X Time
This is a not-for-profit bank.
Credit Union
Stop payment
A bank service that directs the bank not to honor a check that you have written
The rate at which banks can borrow money from the excess reserves of other banks
Federal funds rate
A savings account option that pays an interest rate that moves with the market. The rate is usually higher than a savings account but has more rules like a minimum account balance.
Money Market Account
Gabriela is investing $300 at a rate of 3%. Are you looking for R or T in this Rule of 72 problem?
Time (years)