Personal Finance Chapter 5

What is a card issued by a financial institution, that allows you to withdraw money from your accounts or pay for purchases by deducting funds directly from your accounts?

• debit card
• credit card

The use of a debit card to purchase an item or service at a retail store

• point-of-sale transaction
• rate of return
• brick and mortar transaction

A for-profit institution that offers a full range of financial services is a credit union.

• false
• true

A for-profit corporation that offers a full range of financial services, including checking, savings, and lending.

• commercial bank
• credit union
• hometown bank
• mortgage center

A nonprofit financial institution that is owned by its members and organized for their benefit

• credit union
• commercial bank
• hometown bank
• mortgage center

A savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return.

• certificate of deposit
• savings account
• money buried in backyard
• a savings jar

A savings account in which the interest rate varies as market rates change

• money market account
• business account
• standard savings account
• none of these

A certificate of deposit is a savings account in which the interest rate varies as market rates change.

• false
• true

The percentage of increase in the value of savings from earned interest

• rate of return
• deficit
• annual percentage yield
• surplus

The process in which interest is earned on both the principal and any previously earned interest

• compounding
• none of these
• rate of return
• annual percentage yield