Intro. to Depository Institutions
This type of depository institution is in the business to make money (for profit)
Commercial Bank
This type of account provides and easy method for withdrawing and depositing money
Checking
The price paid for using someone else's money
Interest
A person or organization who makes funds available to borrow.
Lender
True or False
Experian is NOT a credit reporting agency
False
Members own this type of bank
Credit Union
The MOST liquid savings tool out of all is the a __________ account
checking
The accumulation of excess fund by intentionally spending less than you earned
Saving
When goods, services, and/or money is received in exchange for a promise to pay back a definite sum of money at a future date is know as __________
Credit
Negatively
Anyone can open an account in this type of bank
Commercial Bank
___________ refers to how quickly something can be turned into cash
Liquidity/Liquid
Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.
Months
A line of credit established in advance so the borrower does not have to apply for credit each time new credit is desired.
Open-end Credit
Which government-run website allows you to download your credit report for free on an annual basis?
This kind of bank can offer cheaper rates to its customers because it is not for profit
Credit Union
This savings tool is the LEAST liquid because you are required to leave the funds in the account for a specific amount of time
Certificate of Deposit
Cash set aside to cover the cost of unexpected events is known as ___________
Emergency savings
The borrower gives the lender his/her automobile title in exchange for a set amount of cash.
Title loan
How long do late or missed payments remain on your account?
7-10 years
This agency insures commercial banks up to $250,000 per account/account holder
FDIC
This savings tool usually offers tiered interest rates
Money Market Accounts
Earning interest on interest is referred to as this
Compounding interest
the amount of money a person has borrowed
Principal
Name, Address, SS#, DOB is located in this section on the credit report.
Personal Information