47 terms

Banking

examine the types of accounts available to consumers from financial institutions and the risks, monetary costs, and benefits of maintaining these accounts.
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Terms in this set (...)

money supply
the total value of financial assets in the economy that are considered money
liquidity
the ease with which an asset can be converted into cash
money market mutual fund
a collection of short-term interest-earning assets purchased with funds collected from many shareholders
interest
a sum paid or charged for the use of money or for borrowing money
mortgage
a specific type of loan that is used to buy real estate
principal
the amount of money borrowed
E-banking
Using computer networks to make electronic funds transfers among accounts
Access
ability to obtain money from one's accounts quickly and easily
Point-of-sale
place where purchase is made and moneyis electronically moved
PIN
number used to access accounts and perform transactions
Direct deposit
Arrangement for electronically depositing pay/benefits directly into an account
Direct withdrawal
Arrangement for electronically withdrawing funds from an account to pay bills
Smart card
Card storing pre-paid amounts of money to use when making purchases
Currency
paper money; bills
Personal check
A hand-written document used to pay for purchases using funds in a personal checking account
Certified Check
A personal check with a bank's guarantee of payment
Cashier's check
A check bought from a bank with payment guaranteed by the bank
Money order
A way for people with no checking account to send money by mail
Traveler's check
A check used in place of cash when traveling for greater security
Debit card
used for point-of-sale transactions in checking accounts
Money
A medium of exchange that sets a common standard of value.
Currency
Coins and paper money printed by the government.
Deposit
Put money into a bank account.
Withdraw
Take money out of a bank account.
Loan
Paying a bank to let you borrow money.
Interest
The fee charged for the right to borrow money.
Federal Reserve
The central bank of the United States.
Inflation
The rise of prices over time.
Income
A person's source of money, dependent on the ability to produce.
Reserve
Money that a bank keeps and does not lend out.
Investment
Money spent in order to make more money.
Entrepreneur
A person who takes risks to start a new business
Credit reporting bureau
Company that keeps track of your credit history.
Credit Counseling
Helps people control their finances and use credit wisely.
Automated teller
machine (ATM)
A machine that allows individuals to complete certain transactions from the machine
without human assistance
Checking account
An account that allows quick access to funds for transactions
Commercial bank
For‐profit depository businesses that offer financial services to both consumers and other businesses
Contactless payment
Payment transactions that can be completed with no physical connection between the payment device and the physical point of sale (POS) terminal or store clerk
Credit Union
Depository institutions that offer many banking services and are owned by their customers
Debit card
A plastic card that is electronically connected to the cardholder's depository institution
account
Depository institution
Businesses that provide financial services
Interest
The price paid for using someone else's money
Interest rate
The percentage rate used to calculate interest
Mobile banking
Apps that many depository institutions have developed that allow online banking access
from devices such as smartphones, tablets and other mobile devices
Online banking
Allows customers to complete certain transactions from a secured Internet site by using a
username and password from any place in the world with Internet access
Savings account
An account at a depository institution that is designed to hold money not spent on current
consumption
Savings tool
Accounts offered by depository institutions whose main purpose is to help people manage
their money

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