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Banking Vocab

Subject : personal-finance
Instructions:
  • Answer 40 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. A member-owned financial institution - either state or federally chartered. Often more competitive thank banks and savings and loan associations because its non-profit status makes its operating costs lower.






2. State-Chartered or federally chartered financial intermediary that accepts deposits from the public and invests those funds primarily in residential mortgage loans.






3. When you write a check for more than the amount that is currently in your checking account - the bank will cover this cost for you so you are not charged more. There is typically a monthly fee for this service.






4. A banking card enhanced with ATM and POS features that can be used to purchase goods and services electronically.






5. Anything used as a medium of exchange.






6. A savings or checking account established in the names of more than one person.






7. Another name for debit card.






8. A savings account in which an individual promises to deposit the money for a set period of time - for which the bank pays higher interest than a regular savings account.






9. Money deposited with a financial institution for investment and/or safekeeping purposes.






10. Buying on the promise to repay at a later date.






11. A score given to individuals based on the financial institution's evaluation of whether a person is suitable to receive credit.






12. A plastic card which gives access to a line of credit that users are expected to repay.






13. Any written document instructing a bank to pay money from the writer's account.






14. A small monthly fee a bank charges for handling a checking account.






15. The period of time and the interest rate arranged between creditor and debtor to repay a loan.






16. An amount of money put into a savings or checking account; the act of putting money into a bank account.






17. Interest calculated not only on the original principal but also on the interest already accrued.






18. Non-governmental financial institutions. Sometimes called full-service banks because they provide a wide range of services - such as checking and saving accounts - credit and loan arrangements - and safe deposit box rentals.






19. A governmental agency by Congress to organize and regulate banking throughout the U.S.






20. Items of monetary value (ex. House - land - vehicle) - owned by an individual or company.






21. An agency which checks credit information and keeps complete files on people who apply for and use credit.






22. To revise a loan agreement to make the terms of payment more suitable to a borrower's present income and ability to repay. It usually provides a lower interest rate and lower monthly payments over a longer period of time.






23. Anything that a bank accepts as security against the debtor's not repaying a loan. If the debtor fails to repay the loan - the bank is allowed to keep it.






24. An outstanding amount of money. Refers to the amount of money in a particular account.






25. An amount of money taken out of an account.






26. A check does this when its amount is debited (subtracted) from the payer's account and credited (added) to the payee's account - the check actually goes through the banking system.






27. A check issued by a bank on its own funds rather than by one of it depositors.


28. A bookkeeping term for a sum of money owed by an individual or institution; a charge deducted from an account.






29. To write the payee's own signature on the back of a check before cashing - depositing - or giving it to someone else.






30. A bank account which accrues interest in exchange for use of the money on deposit. The depositor is usually allowed an unlimited amount of deposits and withdrawals.






31. A stock of accumulated wealth used or available for producing more wealth.






32. A long-term loan obtained by individuals to buy a home which legally transfers ownership from the debtor to the creditor until the debt is paid.






33. An account for which the holder can write checks.






34. An itemized slip showing the exact amount of paper money - coin and checks being deposited to a particular account.






35. An IOU issued by a corporation - the U.S. Government - or a city and held by the lender as receipt that the business or institution has borrowed a specific amount of money. All bonds pay interest yearly and are payable in full at a specified date wri






36. A check written for more than is currently in the account and the bank refuses to cash it.






37. An establishment for lending - issuing - borrowing - exchanging and safeguarding money.






38. A monetary loan to be repaid in fixed amounts over a predetermined period of time. Typically each payment is made monthly.






39. A request made to a bank not to pay a specific check. If requested soon enough - the check will not be debited from the payer's account. Normally there is a charge for this service.






40. The fee paid for the use of money.