MSBA Managing a Checking Account

When you ask your financial institution to stop a check drawn on your account from being cashed in called a ___

Stop Payment

When you write a check from your account and don’t have enough to cover you will get a fee that is called ___

Overdraft Fee

You use this to keep track of the money you put into and take out of your checking account?

Check Register

Using your ATM card to deposit money into and withdraw money from your account is known as ___

Electronic Banking

A debit card resembles an ATM card, except the debit card displays what type of logo?

MasterCard or VISA

When your employer gives you your paycheck or other checks electronically it is called ___

Direct Deposit

If you write a check without enough money in your account to cover the check, it is known as ___

Bouncing

A nine digit bank code, used in the United States, which appears on the bottom of negotiable instruments such as checks identifying the financial institution on which it was drawn, is called ___

Routing Number

An electronic image of your check that has the same standing as the actual check is called ___

Substitute Check

What is the amount you pay to use someone else’s money?

Interest

The maximum amount of credit a lender will extend to a customer is called ___

Credit Limit

A record of your personal financial transaction from the past seven to ten years is called a ___

Credit Report or Credit History

A number between 300 and 850 that reflects your credit worthiness is called your ___

Credit Score

True or False: you can get a free credit report each year.

True

The number of days you have to pay your balance before a creditor starts charging interest is ___

Grace Period

True or False: Bankruptcy will not fix credit record problems and will be part of your credit history for 10 years.

True

What does FTC stand for?

Federal Trade Commission

Total dollar amount of purchases made on a credit card, or the balance remaining on a loan, not including interest or other fees is called ___

Principal

Some companies charge a fee for the privilege of using their credit card, what is this fee called?

Annual Fee

What does FICO stand for?

Fair Isaac Corporation

True or False: A higher FICO score puts you in line for a lower interest rate on a loan or credit card.

True

Borrowing cash against your credit card, in which you will be charged a fee, is called ___

Cash Advance

An amount that credit card companies can charge for the use of a credit card is called ___

Annual Fee

What is the total amount of what it costs you to use credit in a given year? This term is expressed as a percentage of the amount borrowed.

APR, Annual Percentage Rate

Federal Law requires that you receive what type of Disclosure Statement from the credit card company offering you a credit card

Federal Truth in Lending Disclosure

Name the 3 credit reporting agencies?

Equifax, Experian, TransUnion

A security you provide the lender so that they can be assured you will repay your debt is called ___

Collateral

Term to describe the use of a smart phone or PDA to access an account

Mobile Banking

True or False: Teenagers do not have to pay FICA if under 18

False

What type of loan is used to purchase a home?

MortgageT

True or False: Collateral is required with an unsecured loan

False

What do you call the actual dollar cost of using credit, which is calculated by a lender?

Finance Charge

The legislation that guarantees that all information about the costs of a loan is provided in writing to consumers is what?

Truth in Lending Act

A loan for which the amount of the payment, rate of interest, and the number of payments are fixed is known as what?

Installment Loan

True or False: Providing an efficient and unbiased method of evaluation credit and evaluating the potential creditworthiness of loan applicants, for many years has been the function of a Credit Scoring System

True

The length of time until a borrower pays off a loan is considered a ___

Loan Term

What is the nominal rate on which interest is calculated per year?

APR

A loan that is taken out for a year or less is known as what?

Short Term Loan

Taken possession of property for which the mortgage has been defaulted is called what?

Foreclosure

What does DIF stand for?

Depositors Insurance Fund

What does NCUA stand for?

National Credit Union Administration

Current dollar amount covered by FDIC and NCUA

250,000

What kind of Deposit if For Deposit Only?

Restrictive Endorsement

What is a joint account?

2 people on an account

Where is a transit or routing number located on a check?

Bottom Left

Name a security feature in the bank?

Cameras, Bait

In MA, how many years can an account be inactive before it is considered dormant?

3 years

Term used to describe that the payee signs the back of a check?

Endorsement

What does regulation CC cover?

Funds availability and holds

How many numbers in a transit or routing number?

9

What is a stale-date check?

It is a check dated 6 months or more prior to today’s date

Name three types of endorsements?

Blank, Restrictive, Special

Name 3 transactions a member conducts in a credit union?

Cash Check, Deposit, Withdrawal

Direct Deposit is covered by what regulation?

Regulation E

What information is required to set up direct deposit?

Account number and routing number

True or False: Companies save money by using direct deposit?

True

True or False: I can divide my pay among different accounts if I use direct deposit?

True

How many Federal Reserve Banks are there?

12

Who is the chairman of the Federal Reserve?

Jerome Powell

Functions of the Federal Reserve Bank

Influencing interest rates, managing money supply, and protect consumers

What is the term for when an unauthorized person uses the personal information of another to commit fraud or other crimes

Identity Theft

When you buy stock in a company, you buy ___

a part of the actual company itself

What are assets?

Things you own

What are liabilities?

Things you owe

Interest that is calculated and added once a year is said to be ___ annually

Compounded

What do you call a plan you create for meeting expenses during a given period of time?

Budget

What is the movement of the money you receive and the money you spend?

Cash Flow

The entire amount of money you owe to lenders is called ___

Debt

The form that you fill out when you begin a job, which states how much taxes will be taken out of your pay.

W-2

Your savings account is an important part of reaching your financial goals and is an expense. What is the best way to make sure you always save a portion of any money you earn?

Pay Yourself First

The willingness to give up something you want now, in order to get something in the future is called ___

Delayed gratification

Expenses that are not paid monthly, and can be fixed or variable are called what?

Periodic Expenses

One service provided by financial institutions is to officially witness signatures on a legal document. The person providing this service is authorized by state or local government, and uses an embossing tool to verify his presence when the document is signed. What do you call this person?

Notary

This instrument orders that a particular sum of money is paid to the payee. This method of payment is sometimes preferred over a personal check because the sum to be paid is guaranteed. What do you call this instrument?

Money Order

A type of electronic transfer of money from one financial institution to another, can be done through ___

Wire Transfer

This check is as good as cash and is issued by an officer of a bank or credit union. What is the name of this check?

Treasurer’s Check

What do you call the written report of your financial date that you receive monthly?

Statement

When you use your debit card with your PIN number at a store or gas station, you are making what kind of transaction?

Point of Sale transaction