Personal finance chapter 7

Overdraft protection is an automatic loan made to an account if the balance will not cover the checks written.
Click the card to flip 👆
1 / 20
Terms in this set (20)
Overdraft protection is an automatic loan made to an account if the balance will not cover the checks written.
true
A certificate of deposit (CD) has a term & maturity date
True
A commercial bank is in business to make a profit
True
An endorsement allows you to transfer a check to an organization or another person
True
A savings & loan association is a financial institution that is owned by its members
False
A stop payment order is a request that a bank or other financial institution not cash a particular check
True
According to the Truth in Savings Law, financial institution have to guarantee you a minimum interest rate on your deposits
False
Money in a checking account is called a demand deposit
True
A debit card takes money out of your savings account
False
A finance company specializes in high interest loans to low credit rating customers
True
Problematic financial business include each of the following EXCEPTSavings and loan associationsCompared with commercial banks, credit unions generally offerlower fees and loan ratesTo earn high interest rates on a certificate of deposit , you must accept all the following limitations EXCEPTCompleting a monthly bank reconciliationIf you deposit $100 in an account with an annual interest rate of 6 percent compounded monthly, after 12 months you will have$6.18The first step in balancing a checkbook isComparing checks in the check record with those on the statementCredit cards allow you toborrow money for a short termThe federal deposit insurance corporation insures depositors against losing there money in a case ofBank failureIn which kind of savings plan does the interest rate vary from month to month?money marketWhich of the following financial services is best suited for a loan on a houseMortgage loanWhen writing a check, include all of the following EXCEPTThe name of the payee