Topic 1-Getting Started ArnobH
Terms in this set (31)
A banking service allowing a customer's money to be handled and tracked. Common bank accounts are savings and checking accounts.
The amount of value an item such as a car,home or stock, gains over time from the original purchase price.
Anything of value owned by a person or company. When applying to a person it might include cash, a house, a car, and stocks. When applying to a business, it might include cash, equipment, and inventory.
Automated Teller Machine (ATM)
A specialized computer used by bank customers to manage their money, for example, to get cash, make deposits, or transfer money between accounts.
The amount of money in your account that you can use or withdraw. It may not reflect all transactions that you have made, for example checks you have written that have not yet been paid from your account.
Bad or bounced check
A financial institution that handles money, including keeping it for saving or commercial purposes, and exchanging, investing, and supplying it for loans.
A written order instructing the bank to pay a specific amount of money to a specific person/entity. It must include a date, payee (person, company, or organization to be paid), amount, and an authorized signature.
A bank account that allows a customer to deposit and withdraw money and write checks. Using a checking account can be safer and more convenient than handling cash.
When the bank pays a check you have written and then subtracts the amount from your account, your check has done this to the bank.
A non-profit financial institution that is owned and operated entirely by its members.
A card linked to a checking account that can be used to withdraw money and make deposits at an ATM and to make purchases at merchants.
A loss of value in real property brought about by age, physical deterioration, functional or economic obsolesces.
To sign the back of a check, authorizing the check to be exchanged for cash or credit.
Federal Deposit Insurance Corporation (FDIC)
An independent agency of the United States government that protects customers from the loss of their deposits.
Companies such as banks, credit unions, and savings institutions that provide a wide range of money management products and services to consumers. Financial institutions collect the funds from the public and place them in financial assists, such as deposits =, loans, and bonds.
An increase in the general price level of goods and services; a decrease in the purchasing power of the dollar.
The amount of money paid by a borrower to a lender in exchange for the use of the lenders money for a certain period of time.
The amount of money an individual or business owes to someone else; a debt.
Line of credit
An arrangement by which a lender extends a specific amount of credit to a borrower for a certain time period. As long as the borrower repays the principal with interest, he or she can continue to borrow against the line of credit during the agreed upon time period. It can be unsecured or secured.
A document issued by a post office, bank, or convince store ordering payment of a specific sum of money to an individual or business.
Non-sufficient funds (NSF)
The lack of enough money is an account to pay a particular check or payment.
When there is not enough money in an account to cover a transaction and the bank pays it on your behalf, creating a negative balance in the account that you need to repay.
A service that automatically transfers money from a linked account that you select, such as savings or credit account, when you don't have enough money in your checking account to pay your transactions.
The person, company, or organization to whom a check is written: a person or company who is to receive money.
Is usually a two-part scam involving email and spoof websites.
The process used to determine if the balance in your account register matches the balance reported by the bank on your account statement. Also called balancing your account.
This is known as "non-sufficient funds" or a "bounces check." If you spend more money than you have in your checking account, the bank may return the transaction unpaid and charge a fee.
Savings & Loan
A Financial institution that excepts deposits from individuals, makes home mortgage loans, and pays dividends.
A monthly accounting documents sent to you by your bank that lists your account balance at the beginning and end of the month, and all of the checks that you wrote that your bank as processed during the month.
A register that allows you to keep accurate records of your deposits and withdrawals. Use your check and/or savings register to record every deposit and withdraw you make.