Chapter 5 Test
Terms
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- Overdraft protection
- An automatic loan made to you if you write a check for more money than you have in your account.
- Debit card
- Cash card, allows you to withdraw money or pay for purchases from your checking or savings account.
- Credit Union
- A non-profit financial institiution that is owned by its members and organized for thier benefit.
- Commercial bank
- A for-profit institution that offers a full range of financial services
- Stop-payment oder
- A request that an institution not cash a particular check.
- Money Market account
- A savings account in which the interest rate varies from month to month.
- Compounding
- The process in which interest is earned on both the principal - the amount you deposited - and on previously earned interest.
- Annual percentage yield
- Tells you how much interest a financial institution would pay on a $100 deposit for one year.
- Endorsment
- The signiture of the payee, the party to whom the check has been written.
- Certificate of Deposit (CD)
- A time deposit that requires you to leave your money in a financial institution for a set amount of time.
- Bank Reconciliation
- A report that account for the differences between the bank statement and your checkbook balance.
- Automatic teller machine (ATM)
- Cash machines, computer terminals that let you withdraw cash from your account, make deposits, and transfer money from one account to another.
- Rate if ruturn
- The percentage of increase in the value of your savings from earned interest.
- Savings and loan association
- Offers many of the same services as commercial banks, including checking accounts, business loansm and investment services.