Study Skills Flash Cards
(28 cards)
Annual Percentage Yield (APY)
A percentage rate that shows how much interest someone would earn after a full year.
Bottom Line
A number that shows the difference between what a business has earned vs what it owes.
Bounce
When a check is returned because there aren’t enough funds to cover the transaction. It could take days or weeks for the check to be returned; when it is, the account holder is charged a non-sufficient funds (NSF) fee. Sometimes the check recipient is charged a fee, too.
Checks
An official form that tells a financial institution to give a certain amount of money from someone’s account to someone else’s
Checking Account
A transaction account that usually does not earn interest. Checking accounts allow you to use a debit card or check to buy things with money from that account.
Credit Score
A number between 300 and 850 that’s compiled by considering someone’s borrowing history and represents their creditworthiness to potential lenders.
Debit Card
A card that allows you to pay for things with money from a checking account.
Deposit
Money put into an account at a financial institution
Dividends
Payouts based on profit to an investor
Federal Deposit Insurance Corporation (FDIC)
An Agency in the federal government that insures deposits in banks and examines their safety for customers.
High-Yield Savings Accounts
A kind of savings account that earns a higher interest rate than a traditional savings account
Incentive
A benefit of or reason for doing something.
EX: Interest gives people an incentive to save, because they’ll end up earning more money
Interest
An amount of money that gets added to the principle, shown as a percentage. Interest can be earned or owned.
Liability
Something a person or business owes money on.
National Credit Union Administration (NCUA)
A part of the federal government that insures money in credit unions and regulates them to keep customers safe.
Overdraft Fee
A fee charged when there isn’t enough money in an account to cover an expense. Purchases up to a certain limit may still go through, with the additional fee for each transaction. Account holders typically opt-in to overdraft protection
Principal
The money originally deposited into an account or borrowed on a loan
Savings Account
An account meant to help with and encourage saving money by paying interest. Purchases generally cannot be made directly from the money in the account.
Solvent
A measure of a business’s ability to meet financial obligations and pay back dept. A financial institution is solvent if they have enough money to cover all customer accounts.
Withdraw
To pull money out of a account at a financial institution
Advertising Influences
A number that show the difference between what a business has earned vs what it owes.
Brand Reputation
Brand Reputation is the collective perception of a brand by customers, employees, partners, and others. A stronger brand reputation means more people trust and advocate for the brand.
Customer service
The assistance provided by a company to consumers ho purchase or use its products or services.
Fixed Expenses
Expenses that generally don’t change in dollar amount from month-to-month, like a mortgage or rent, insurance payments, and more.
