Pers Finance Ch 9 Terms

Rule of 72

72 divided by annual interest rate = # of yrs for your $ to double

3 things Rule of 72 says

power of compounding interest, start early, stay discipline

banking service in which a customer deposits money and writes checks to withdraw at his or her convenience

checking acct

an acct on which a depositor can with draw at any time

demand deposit

occurs when a depositor writes a check on an acct that is insufficient to cover the check

overdraft

the person to whom a check is made payable

payee

the person authorized to write checks on an acct

drawer / maker

this endorsement requires 2 signatures

joint

the record of checks written and deposits made in a checking acct, kept by the depositor

register

paper money in the form of ones, fives, tens, twenties..ect

currency

sent by the bank regularly, showing the checks and deposits processed by the bank as well as charges and fees assessed

bank statement

a check that has been processed and paid by the bank, therefor subtracted from the depositors acct

canceled

the payee simply signing his or her name on the back of the check transferring ownership

blank endorsement

an endorsement "for deposit only" limits the further transfer

restrictive endorsement

these cards make an immediate deduction from your checking acct when you use them

debit cards

checking accts in credit unions are called

shared accts

to write a check knowing there is temporarily not enough money in the acct to cover the check

floating a check

a check guaranteed by the bank

certified check

a check drawn against the banks own funds

cashiers check

the process of matching your checkbook register with the bank statement

reconciliation

a request to the bank not to cash a check

stop payment order

endorsement signing the check over to a third person

special endorsement