Banking
What is the term for the fee a bank charges for lending money?
Interest rate
What is a budget?
This is the term for a financial plan that helps track income and expenses
What is a credit score?
This three-digit number helps lenders determine how likely you are to repay debt.
What is a deductible?
The amount you pay before insurance kicks in.
What is return?
This is the term for money you earn on your investments, such as interest or dividends.
What federal agency insures deposits in U.S. banks up to $250,000?
Federal Deposit Insurance Corporation (FDIC)
What is mental accounting?
This behavioral economics concept explains why people treat a tax refund differently than their regular paycheck.
What is a balance transfer?
This type of credit card balance transfer can help consolidate debt—often with a low introductory rate.
What’s the difference between term and whole life insurance?
Term lasts a set time; whole life covers you for life and builds cash value.
What is a stock?
A share of ownership in a company that can be bought and sold on the stock market.
What banking tool allows customers to authorize automatic recurring payments or deposits?
Automated Clearing House (ACH)
What is present bias?
This type of bias causes people to prefer immediate rewards over long-term benefits, making it hard to save money.
What is a credit report?
This government-mandated report shows your credit history and is available for free once a year from each major bureau
What is reinsurance?
Insurance for insurers to reduce their risk.
What is a bond?
This type of investment typically has lower risk and lower return, and is often issued by governments or corporations.
What is the term for a bank’s obligation to keep a certain percentage of customer deposits in reserve and not loan them out?
Reserve requirement
What is automation (or setting a default)?
Automatically transferring a portion of your paycheck into a savings account is an example of this behavioral economics tool.
What is TransUnion?
The three major credit bureaus in the U.S. are Experian, Equifax, and this third one.
What is adverse selection in health insurance?
High-risk people are more likely to buy insurance, raising costs.
What is a bull market?
This term describes a prolonged period of rising stock prices.
What international agreement sets global standards for the regulation of banks, including capital requirements and risk management?
Basel Accords
What is loss aversion?
According to behavioral economics, people fear losses more than they enjoy gains, a concept known as this.
What is credit utilization?
This term refers to the ratio of your credit card balances to your credit limits. Keeping it low can boost your credit score.
What does Solvency II require?
EU insurers must hold enough capital and manage risk properly.
What is diversification?
This strategy involves spreading investments across various assets to reduce risk.