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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 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.






2. 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.






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






4. 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.






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






6. 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.






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






8. The fee paid for the use of money.






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






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






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






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






13. Anything used as a medium of exchange.






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






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






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






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






18. 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.






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






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






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






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






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






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






25. Another name for debit card.






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






27. 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.






28. 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.






29. 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






30. 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.






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






32. 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.






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






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






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






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






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

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






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






40. 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.