per finance ch 5

bank reconciliation

the process of adjusting checkbook and bank balances so that they agree

debit card

a card used to withdraw or deduct money from your checking account

checkbook register

a tool used to track checking account transactions

checking account

a demand deposit account on which checks are drawn

postdated check

a check written with a date that will occur in the future

deposit

money added to a checking account

check

a written order to a bank to pay a stated amount to a person

endorsement

a signature written on the back of a check

electronic funds transfer

the use of a computer-based system to move funds from the drawer's account to the payee's account

simple interest

interest computed on principal once during a certain period of time

maturity value

a bond's future value as stated on its face

certificate of deposit (CD)

a time deposit that pays a fixed rate of interest for a specified length of time

compound interest

interest earned on both principal and previously earned interest

savings account

a demand deposit account designed for the accumulation of money in a a safe place for future use

U.S. savings bond

a discount bond issued by the federal government

principal

a sum of money set aside on which interest is paid

annuity

a fixed amount set aside on a regular basis over time

rule of 72

a quick formula for computing how long it will take to double money invested at a given interest rate

safe deposit box

a secure container located in a bank vault

overdraft protection

a bank service that covers a shortage in your account

stop payment

an instruction to the bank not to honor a check that has been issued or lost

cashiers check

a check issued against the banks funds

money order

a type of check used to pay bills or make payments for which the money is guarenteed

Internet banking

accessing and managing your account onlline

smart card

a card that contains a computer chip that stores electronic money

bounced check

a check that is not honored by a bank and is returned to the payee's bank due to non sufficient funds

inactive account

a checking or savings account that does not meet minimum usage requirements

floating a check

writing a check and planning to make a deposit later to cover it before the check is processed