Personal Finance Review for Final

Which of the following is a machine that allows you to perform banking transactions without a teller?

• Automated teller machine (ATM)

• Compounding

What is the term for a card that allows you to withdraw money directly from your bank account?

• Debit card

• Stop-payment

Which type of financial institution is owned by its members and offers similar services to a bank?

• Credit union

• Endorsement

What is the process called when you compare your bank statement with your own records?

• Bank reconciliation

• Direct deposit

Which term refers to the interest earned on both the initial principal and the interest already earned?

• Compounding

• Endorsement

What is the name for a financial product that pays a fixed interest rate for a set period of time?

• Certificate of deposit (CD)

• Direct deposit

Which term describes the percentage rate reflecting the total amount of interest paid on an account?

• Annual percentage yield (APY)

• Endorsement

What is the term for a service that prevents checks from being processed if there are insufficient funds?

• Overdraft protection

• Commercial bank

Which type of account typically offers higher interest rates and requires a higher minimum balance?

• Money market account

• Endorsement

What is the term for the return on an investment, usually expressed as a percentage?

• Rate of return

• Bank reconciliation