Flashcards in Quiz 5 Deck (51)
What does the Federal Reserve Bank and D.O.T do ?
Back your money
What does the bank protect ?
What are travel checks ?
The bank accept your checks
A replacement for cash so you don't have to carry it
Take money out a minimum of 5 times month
Liquid asset (not as much, just thicker)
Why do you only take money out of your saving 5 times a month ?
Helps you save
Certification of Deposit (CD)
Pay higher rates
Frozen savings account
A savings account you can't touch
Can it be short or long term ?
If you were to take out money before the end of your time, what would you have to pay ?
What do most CD's do ?
Lock in interest rate
What is the number one way the bank make their money ?
Who issues the credit cards ?
What is a credit ?
Payments per cardholder agreement with interest
Merchant fees: 2 1/2-3%
What is a charge card ?
100% payed off each month
Annual fee: 4-5%
What is a debt card ?
A card used to withdraw money from a bank account
What is a credit card ?
A card entitling its owner to buy goods and services based on the owner's promise to pay for those goods and services
Basically jail time
What is repossession ?
Default on loans
Example: default on your car loan, the bank can take the car
What is foreclosure ?
The seizure of property form the borrowers who repay their loans
What is a collateral ?
Anything you put up to secure a loan
Example: a collateral for a house loan is your house
What would probably would qualify for loan/mortgage ?
What is a appraisal ?
Estimation of value
What is a principle ?
The amount of money borrowed
What is an interest ?
The price paid for the use of borrowed money
How much does the bank have of your money ?
Only a fraction of your money
Why wouldn't a business decrease in a recession ?
They are always in a business cycle
What is cash poor ?
Companies would become cash poor because of expansion
(Example from class)
Record year for a new shoe store ...... what could happen ?
Expand- more $$$
- more product
- more employees
- more infrastructure