WISE EXAM REVIEW I Flashcards
(48 cards)
Discretionary Income
money left over from paying all your bills
Emergency Fund
3-6 months set aside in the event of an emergency
Fixed Expense
a consistent amount of income received every month
Variable Expense
income that varies from month to month
Annual Percentage Rate
your interest rate divided by 12
Buying Power
the extent to which your money can buy good; purchasing power
Compound Interest
interest that is added on to preexisting interest
Simple Interest
basic interest; generally used for debt
Federal Reserve Bank
sets the interest rates for banks across the U.S and is responsible for monetary policy; government ran
ABA Number/ Check Routing Number
states which bank the check belongs to; the first number at the bottom left corner of the check
ATM Card
acts as a debit card
Automatic Bill Payment Service
A service that automatically pays your bills using money from your debit account
Bank Statement
displays all of the money flowing in and out of your bank account
Car Loan
a loan used to purchase a car
Cashier’s Check/ Money Order
a guaranteed form of payment
Check Cashing Centers
a place you can go to do things you would do at a bank; more expensive than a bank
Certificate of Deposit
non-liquidable;
Check Fraud
attempting to use an empty check to make a purchase
Collateralized Loan
when you have a repossessable asset attached to a loan
Credit
the concept of owing money
Credit Card
a card used to make purchases that you don’t immediately have the money for
Credit Union
non-profit, ran by its own members, has lower fees
Debit Card
a card used to access money from your checking account
Endorsement
a check given from one person to another
