Checking Accounts
What is The Primary Purpose of a Checking Account
A checking account is primarily used for day-to-day transactions, such as paying bills or making purchases.
What is The Main Purpose of a Savings Account
A savings account is designed to save money for future use while earning interest.
What Does a Credit Score Represent
A credit score represents your creditworthiness and is used by lenders to assess risk.
What is a Financial Contract
A financial contract is a legally binding agreement related to money or credit.
What is The Goal Of Investing
Investing aims to earn a higher return on money over time.
What is a Check Register Used For
A check register is used to keep track of deposits and withdrawals to monitor account balances.
What is Interest in a Savings Account
Interest on a savings account is the money the bank pays you for keeping your funds in the account.
What Factors Affect Your Credit Score
Factors like payment history, length of credit history, and credit utilization affect your credit score
What is a Lease Agreement
A lease is a contract to rent property for a specified period.
What is Diversification in Investing
Diversification involves spreading investments across different asset types to reduce risk.
What Happens If You Write a Check for More Money Than is in Your Account
Writing a check for more money than is in the account results in an overdraft, which can lead to fees or penalties.
How Do Savings Accounts Differ From Checking Accounts
Savings accounts typically offer higher interest rates than checking accounts.
What is Considered a Good Credit Score
A credit score of 700-749 is generally considered good.
What is a Loan Agreement
A loan agreement outlines the terms of borrowing money, including repayment terms and interest rates.
Which is Less Risky Stocks or Bonds
Bonds are considered a low-risk investment compared to stocks.
How Does A Debit Card Work
A debit card directly withdraws funds from a checking account when used for transactions.
What is a Minimum Balance Requirement in a Savings Account
A minimum balance requirement is the least amount you must keep in the account to avoid fees.
How Does a High Credit Score Benefit You
A high credit score provides easier access to credit with lower interest rates.
What Happens if You Default On a Financial Contract
Defaulting on a financial contract can result in penalties, legal action, or damaged credit.
What is Liquidity
Liquidity refers to how easily an asset can be converted to cash without losing value.
What Does It Mean To Reconcile a Checking Account
Reconciling a checking account means comparing your check register to your bank statement to ensure accuracy.
What is a Certificate of Deposit, and How Does it Differ From A Savings Account
A certificate of deposit (CD) requires money to be left untouched for a set period, unlike savings accounts.
How Does Missing a Credit Card Payment Affect you
Missing a credit card payment negatively impacts your credit score.
What is a Co-Signer
A co-signer agrees to pay a loan if the borrower defaults, helping secure the loan.
What is The Difference Between Stocks and Mutual Funds
Stocks represent ownership in a company, while mutual funds pool resources to invest in various securities.