Chapter 5 Test
Terms
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- Certificate of Deposite(CD)
- Is a time deposit that requires you to leave your money in a finanical insitution for a set amount of time
- Bank Reconciliation
- Is a report that accounts for the differences between the bank statement and your checkbook balance
- Stop-Payment Order
- Is a request that an institution not cash a particular check
- Credit Union
- Is a nonprofit finanical institution that is owned by its members and organized for their benefit
- Compounding
- Is the process in which interest is earned on both the principal
- Debit Card
- This will let you withdraw out of your checking or savings account
- Automatic Teller Machines(ATM's)
- You can go anywhere to one of these and get cash when you need it
- Endorsment
- Is the signayure of the payee, to whom the check has been written to
- Rate of Return
- Is the percentage of increase in the vaule of your savings from earned interest
- Annual Percentage Yield(APY)
- Tells you how much interest a financial institution would pay in a $100 deposit for one year
- Money Market Account
- Is a savings account in which the interest rate varies from month to month
- Overdraft Protection
- An automatic loan made to you if you write a check for more money than you have in your account
- Commerical Bank
- So a for-profit institution that offers a full range of finanical services, including checking, savings, and lending
- Savings and loan association(S&L)
- Traditionally specialized in savings accounts and mortgage loans