Banking Definitions
A written order to a bank to pay the stated amount to a person or business.
Check
A loan that is repaid by the borrower in regular intervals?
installment loan
When was the Truth in Lending Act created?
1968
Security code for your debit card
Explain what a grace period is for a credit card.
This is when you have a certain amount of time to pay off your balance before interest is accrued.
What type of endorsement would it be if you wrote For Deposit Only on the back of a check?
Restrictive Endorsement
Credit that fluctuates each month based on the consumer's spending?
Revolving Credit
The initial deposit for a checking account is usually around how much?
$50-100
What does FDIC stand for?
Federal Deposit Insurance Corporation
Why should you be cautious about a Promotional Rate for a credit card?
You realize your account contains insufficient funds but you write a check anyway is called?
Floating a check
A Lender seizes and sells a home or property after its buyer is unable to fulfill their payment
Foreclosure
What is the equation for calculating your interest on a monthly basis?
balance times % divided by 12
Rank these three accounts from the highest liquidity to the lowest. 1) CD 2) Checking 3) Savings
1) Checking
2) Savings
3) CD
What's the difference between variable rate and fixed rate?
Variable the rate changes and fixed rate stays the same
is a check that contains the bank’s stamp, indicating that it has cleared
canceled check
is a fee charged for the use of credit or the extension of existing credit
Finance Charge
What percentage of your FICO score is made up of NEW CREDIT?
10%
Explain why a person would get a cashier's check
This is to ensure that the business is paid without any hassle. It is guaranteed money because it is signed off by the bank.
What does a co-signer do?
This person pays off any debt if the original signer cannot pay.
a booklet used to record checking account transactions
checkbook register
A business that offers secured loans, with items of personal property used as collateral.
Pawnshop
What percentage of your income should you spend on your rent?
20-25%
What are the 5 c's of credit
Collateral
Character
Conditions
Capacity
Capital