Economics final- chapter 10 section 3

What is the price paid for the use of borrowed money?

• default

• loan

• credit

• interest

What is a mortgage?

• A specific type of loan that is used to buy real estate

• The amount of money borrowed

• A specific type of loan used to buy vehicles

• A person or institution to whom money is owed

What is demand deposit?

• The money available in the United States economy

• Government owned money

• The money in checking accounts

• A card used to withdraw money

Define the term "principal"

• Mr. LaBelle

• The amount of money borrowed

• The person in charge of a school

• Failure to pay back a loan

What is a debit card?

• A loan used to buy real estate

• A card used to withdraw money

• A card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services

• An Automated Teller Machine

What are the different kinds of financial institutions operated in the United States?

• Credit cards and debit cards

• Finance companies, electronic banking, home banking, and stored value banks

• Commercial banks, savings and loan associations, mutual savings banks, and credit unions

• Bank of America, NationsBank, and Chemical Bank

What are banks largest source of income?

• The interest they receive from customers who have taken loans

• The money provided to them by the government

• Stored value cards

• Credit cards and debit cards

What is the common use of Automatic Clearing Houses (ACHs)?

• To hold on to big sums of money

• To pay monthly bills like mortgage payments, rent, utility bills, and insurance premiums

• To get loans to start businesses from scratch; online businesses included

• For low income families to get a mortgage

What were the banks use for computers in the 1970s?

• To keep track of transactions

• To deposit money, withdraw cash, and obtain account information at their convenience

• To keep track of how much money you owe the bank

• To see how much money you have in your account

Where do banks store cash?

• In cash register

• Underground

• In locked file cabinets

• In fireproof vaults