Unit 2: Spending Test Review

What is a depository institution?

• A business that offers and sells financial services to people

• A commercial property used to advertise real estate

• A retail store

• A building that leases out office space

The act of taking money out of an account. 

• Deposit

• Withdrawal

• Overdraft

• Credit

A sum of money placed or kept in a bank account. (putting money into an account).

• Deposit

• Withdrawal

• Credit

• Overdraft

__________ is relating to money or currency. 

A _______ is a financial institution that receives deposits, makes loans, honors checks drawn on those deposits, and pays interest. 

If you have a higher withdrawal than the money in your bank account, it will cause an ___________ in your account, This is where the bank ends up having to cover the difference, but then they will charge you a hefty fee. 

An account at a financial institution that allows for withdrawals and deposits. Great for paying bills and keeping track of spending. 

• Savings Account

• Checking Account

• Credit Card Account

• Private

The price of money that is borrowed.

• Capital gains

• Fees

• Loans

• Interest

When something is received in exchange for a promise to pay back money in the future.

• Opportunity cost

• Credit

• Pinky swear

• Interest

When an individual puts money into an account, the bank offers its consumers interest rates. The interest will help your money grow over time. What type of account is being described?

• Savings account

• Interest

• Checking account

• Overdraft fee