Unit 8 Flashcard Review

Front

What is one difference between Banks and Credit Unions?

Back

Banks are for profit. Credit Unions are Non-profit.

Front

Which one of the following terms is money that is paid regularly at a particular rate for the use of borrowed money? Options: Deposit, Withdrawal, Interest, Net Worth

Back

Interest

Front

How do commercial banks make a profit?

Back

Commercial banks make a profit by paying depositors a lower interest rate than they charge borrowers.

Front

Annual Percentage Rate (APR) is the yearly percentage rate of the finance charge.

Back

True

Front

Paying the minimum payment on a credit card every month will:

Back

Make the final amount paid substantially higher than the amount initially charged to the card.

Front

One type of short-term loan is called a title pawn loan. Which statement BEST describes why these types of loans should be avoided if possible?

Back

A vehicle title must be provided in exchange for a loan, and people can potentially lose their vehicles if loans are not paid back.

Front

Which of the following financial institutions only serves its members?
Savings and loan associations, Commercial banks, Credit Unions, Payday lenders

Back

Credit Unions

Front

Money or other substance generally accepted as payment for goods and services.

Back

Medium of exchange

Front

A saving account in a bank represents the function of money:

Back

Store of value

Front

What function of money does the picture represent?

Back

Unit of Account (Standard of Value)