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Test your basic knowledge |
Banking Vocab
Start Test
Study First
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. Any written document instructing a bank to pay money from the writer's account.
Terms
Federal Reserve System
Check
Mortgage
2. 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.
Check card
Overdraft protection
Bank
Terms
3. 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.
Credit card
Refinance
Credit Union
Credit rating
4. 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.
Check card
Bond
Savings Account
Clear/Cancelled check
5. A bookkeeping term for a sum of money owed by an individual or institution; a charge deducted from an account.
Savings Account
Bond
Credit Bureau
Debit/deduction
6. Money deposited with a financial institution for investment and/or safekeeping purposes.
Collateral
Certificate of deposit
Capital
Account
7. A check issued by a bank on its own funds rather than by one of it depositors.
8. 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.
Overdraft protection
Mortgage
Credit Bureau
Interest
9. An itemized slip showing the exact amount of paper money - coin and checks being deposited to a particular account.
Deposit slip
Check card or debit card
Credit rating
Balance
10. 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.
Joint account
Stop payment
Compound interest
Endorse
11. Anything used as a medium of exchange.
Currency
Bank
Deposit slip
Credit card
12. A monetary loan to be repaid in fixed amounts over a predetermined period of time. Typically each payment is made monthly.
Capital
Clear/Cancelled check
Collateral
Installment loan
13. 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
Bond
Credit card
Savings and Loan Association
Checking account
14. An amount of money taken out of an account.
Check card or debit card
Withdrawal
Installment loan
Account
15. 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.
Credit
Check
Commercial banks
Credit Union
16. The period of time and the interest rate arranged between creditor and debtor to repay a loan.
Joint account
Credit Union
Currency
Terms
17. A check written for more than is currently in the account and the bank refuses to cash it.
Credit
Credit Union
Savings Account
Bounced
18. 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.
Overdraft protection
Endorse
Deposit
Collateral
19. To write the payee's own signature on the back of a check before cashing - depositing - or giving it to someone else.
Deposit
Mortgage
Endorse
Check card
20. The fee paid for the use of money.
Mortgage
Credit
Cashier's check
Interest
21. An amount of money put into a savings or checking account; the act of putting money into a bank account.
Withdrawal
Terms
Deposit
Interest
22. Items of monetary value (ex. House - land - vehicle) - owned by an individual or company.
Federal Reserve System
Installment loan
Assets
Terms
23. An account for which the holder can write checks.
Deposit slip
Credit Union
Bond
Checking account
24. A stock of accumulated wealth used or available for producing more wealth.
Collateral
Credit
Capital
Commercial banks
25. A savings or checking account established in the names of more than one person.
Bond
Joint account
Overdraft protection
Federal Reserve System
26. An agency which checks credit information and keeps complete files on people who apply for and use credit.
Endorse
Credit Union
Credit Bureau
Collateral
27. An outstanding amount of money. Refers to the amount of money in a particular account.
Certificate of deposit
Savings and Loan Association
Check card or debit card
Balance
28. 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.
Credit rating
Clear/Cancelled check
Assets
Certificate of deposit
29. A plastic card which gives access to a line of credit that users are expected to repay.
Credit card
Service charge
Deposit
Check card
30. A banking card enhanced with ATM and POS features that can be used to purchase goods and services electronically.
Commercial banks
Credit Union
Assets
Check card or debit card
31. A governmental agency by Congress to organize and regulate banking throughout the U.S.
Certificate of deposit
Federal Reserve System
Capital
Debit/deduction
32. Buying on the promise to repay at a later date.
Credit
Cashier's check
Check
Clear/Cancelled check
33. A small monthly fee a bank charges for handling a checking account.
Mortgage
Service charge
Balance
Credit Union
34. 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.
Federal Reserve System
Savings Account
Credit Bureau
Stop payment
35. Interest calculated not only on the original principal but also on the interest already accrued.
Compound interest
Deposit slip
Clear/Cancelled check
Credit Bureau
36. 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.
Bond
Clear/Cancelled check
Refinance
Cashier's check
37. An establishment for lending - issuing - borrowing - exchanging and safeguarding money.
Bank
Mortgage
Joint account
Currency
38. State-Chartered or federally chartered financial intermediary that accepts deposits from the public and invests those funds primarily in residential mortgage loans.
Savings and Loan Association
Cashier's check
Bond
Deposit
39. A score given to individuals based on the financial institution's evaluation of whether a person is suitable to receive credit.
Capital
Credit rating
Cashier's check
Collateral
40. Another name for debit card.
Terms
Check card
Commercial banks
Balance