Final Flashcards
1
Q
Endorsement
A
A signature on the back of a check
2
Q
Overdraft
A
Issued when a lack of sufficient funds to cover a check
3
Q
Payee
A
One to whom the check is written
4
Q
Reconcile
A
To bring your bank statement and check register into agreement
5
Q
Outstanding
A
Financial transactions that you know about but the bank doesn’t know about yet
6
Q
Interest
A
A fee paid for the opportunity to use someone else’s money
7
Q
Credit union
A
A non-profit financial institution owned by its members
8
Q
Savings and loans
A
Originally specialized in providing funds to home buyers
9
Q
Mutual savings bank
A
State chartered financial institutions operated by trustees for the benefit of the depositors
10
Q
Commercial bank
A
Owned by the shareholders and operated for their profits
11
Q
Internet bank
A
Financial institutions that operate exclusively using on-line banking
12
Q
Wire transfer
A
A financial institution that moves funds from one bank to the other electronically
13
Q
Money order
A
A purchased certificate used to lay a specific amount
14
Q
Debit card
A
A card that allows the user to subtract money from their bank account
15
Q
Prepaid card
A
Sold in specific dollar amounts and can sometimes be reloaded
16
Q
Money transfer service
A
Money can be sent almost anywhere in the world when purchasing this type of service
17
Q
FDIC
A
A federal agency that insures savings, checking, and other deposits
18
Q
Pin
A
A secret code that protects the security of your account
19
Q
ATM
A
A computer that gives customers electronically access to their accounts
20
Q
Cashiers check
A
A check issued and guaranteed by a bank
21
Q
Certified check
A
A check written from your personal account that has been stamped by a bank guaranteeing heir is enough money in your account to cover the check
22
Q
Cancelled check
A
A check at sled by the bank indicating it’s been paid
23
Q
EFT
A
The movement of funds electronically
24
Q
Signature card
A
Must fill out when opening an account
25
Banks make money by...
Charging borrowers interest
26
EFT stands for
Electronic funds transfer
27
FDIC stands for
Federal deposit insurance corporation
28
ATM stands for
Automated teller machine
29
In case your bank fails, what does your bank need...
FDIC
30
All banks must offer the same interest rate
False
31
The EFT act stats that if your credit card is stolen and you report it within two business days your are liable for no more than...
$50
32
What is identify theft?
Illegal use of someone’s personal information
33
What should you do if your identity has been stole?
File report with police
Notify you bank and credit card companies
Call the three major credit agencies
Call FTC
34
What does the financial services modernization act do for consumers?
Requires companies involved in financial activities to send privacy notices to customers
35
What is online profiling?
Companies collect information from the websites consumers are using
36
What are cookies?
Some files stored on your computers hard drive when you visit a site
37
Bait and switch
When companies persuade you to buy an item at a higher price
38
False promise of free gift
When a store offers a free gift but the gift isn’t really free
39
Deceptive pricing
Advertising a sale that isn’t better then apthe everyday price
40
Hidden catches
Extra charges and fees hidden in products
41
Pyramid schemes
Multiple people pitch in and each get money back
42
Chain letter
A message sent that instructs the recipient to send copies to multiple people
43
What agencies should you contact if you have been a victim of fraud?
```
Better business burea
FTC
Local consumer protection agency
State attorney generals office
National fraud information center
```
44
When is income tax day?
April 15th
45
How does your employer help you with tax obligation?
Takes the taxes out for you
46
What is the name of the government agency in charge of collecting income tax?
IRS
47
Where does the W-2 come from?
Employer
48
What form do most teens use to file their federal income tax?
1040EZ
49
2 places to find form and instructions for free to complete your taxes
Libraries
| IRS site
50
What is a tax deduction?
Reduced amount of income that is taxed
51
2 examples of tax deduction
Charities or interest on home loan
52
What is a Standard deduction?
Amount that the IRS allows without listing expenses
53
2 examples of tax credit
Paying college tuition
| Childcare expenses
54
Phishing
Scammers who use fraudulent emails or texts or copycat a website to get you to share personal information
55
Malware
Viruses and other unwanted software that gets installed on your devices without consent
56
How to protect yourself from phishing scams
Use secure software you trust
| Make sure to set it to update automatically
57
What to do when you are a victim of scam
File a report with the federal trade commission
58
3 major credit reporting agencies
Equifax
Experian
Transunion
59
What is the difference between first party cookies and third party cookies?
First party is placed by the site
| Third party is placed by someone else
60
Social security number
A unique number used by the government to track your earnings
61
Skimmer
A palm sized gadget to collect and save your credit card information
62
Interest
The extra amount you pay in “favor” in carrying over an unpaid balance
63
APR
Annual Percentage Rate: determines the amount of interest you’ll pay on credit card purchases
64
Fixed rate
An interest rate that doesn’t change
65
Introductory rate
Zero or low APR’s for the first few months
66
Minimum payment
Lowest amount of money you are required to pay on your credit card statement each month
67
Annual fee
A yearly fee companies will charge you for the use of a credit card
68
Charge card
A card issued by a bank allowing the user to purchase items on credit
69
What are the three C’s?
Character
Capacity
Capital
70
Open-end credit
Credit that may be used up to a certain amount
71
Closed-end credit
Borrower must repay the amount in a specific number of equal payments
72
When can a credit card company change the terms on your agreement?
Whenever after a 15 day notice
73
When choosing a credit cards APR, it’s important to...
Find low APR to pay low interest
74
How is affinity cards different from regular credit cards?
Offered by two groups, a bank, an airline, or college
75
Default
Frequently late to paying your credit card bill and you have been reported to a credit burea
76
How will your payment be applied if you have different APR’s?
Payment will go to the lower APR
77
When will you lose your grace period on your credit card?
When you carry a balance
78
Credit score
A number between 300-850 that reflects your credit history
79
Installment credit
A loan that is paid in equal monthly installments with a fixed interest rate
80
Credit report
A document containing important information about a person
81
Balance transfer
The process of moving an unpaid credit card debt from one issuer to another
82
Credit bureau
A business that collects and sells information about how consumers repay debt
83
Card holder agreement
The written statement that gives the terms and conditions of a credit card account
84
Capital
The money paid to use money
85
Finance charge
The charge for using a credit card, compromised interest cost and fees
86
Introductory interest rate
The low rate charged by the lender for an initial period to entice consumers to switch credit cards
87
Payday loan
Short terms, high interest cash loan secured by a paycheck
88
What type of credit is a car loan an example of?
Installment credit
89
Bankruptcy
A legal proceeding designed for customers who are no longer able to pay their bills
90
Charge card
A card used in which purchases must be paid in full each month at the end of the month
91
Credit card
A plastic card issued by a financial institution for the purchase of goods or services on credit
92
Minimum finance charge
Zero or low interest payments for the first few months
93
Piggybacking
The act of improving your credit score or rating by becoming a member of someone else’s credit card
94
Schumer box
The area where you will find the terms and conditions of a credit card offer
95
Secured credit card
This credit card requires collateral. Designed for people who don’t have a credit history or poor credit history
96
Universal default
A common practice for credit card users that allows them to increase cardholders interest rate for any change in a persons credit history or profile
97
Overdraft
Lack of money to pay a check
98
Reasons for using checks
More secure
| Can send photo copies of your checks
99
Balance transfer
The process of moving an unpaid credit card debt from one issuer to another
100
Credit bureau
A business that collects and sells information about how consumers repay debt
101
Card holder agreement
The written statement that gives the terms and conditions of a credit card account
102
Capital
The money paid to use money
103
Finance charge
The charge for using a credit card, compromised interest cost and fees
104
Which kind of tax is tax on interest you earn on savings?
Income tax
105
Which kind of tax helps pay for people’s retirement?
Social security tax
106
Which level of Government is primarily responsible for providing public elementary education?
Local
107
What is another name for consumption tax?
Sales tax
108
Which level of government pays for the good of traffic lights and sidewalks in different towns?
Local
109
Who pays the payroll taxes to the government?
Employers
110
Which tax is a progressive tax?
Income tax
111
Which kind of tax would make gasoline cost more?
Excise tax
112
Which kind of tax is a tax that is sometimes used to decrease demand for a particular item?
Sales tax
113
Which level of government pays for services like bridges, highways, and hospitals?
All three
114
Which level of government gets most of its revenue from property tax?
Local
115
Which kind of tax is a tax on something you buy?
Sales tax
116
Which kind of tax is a tax on something you own?
Property tax
117
What level of government gets most of its revenue from income tax?
Federal
118
What is another word for excise tax?
Luxury tax
119
What are taxes on gasoline, cigarettes, and airplane tickets called?
Excise tax
120
Which kind of tax is a tax on money people get for working?
Income
121
Which kind of tax is different of different people based on their ability to pay?
Income
122
What level of government can tax people’s income?
All three
123
Which level of government pays for the service of medical care for people who can’t afford it?
Federal
