WorksheetsBanks & Credit Vocab Mega Review
Total questions: 40
Worksheet time: 20mins
What do Savings & Loan banks specialize in?
Savings accounts
Loans
Mortgages
Checking accounts
_________ acts as a middleman between an investor and a securities exchange
Banker
Broker
Teller
Accountant
Which of the following is NOT considered a security?
Stocks
Investments
Bonds
Life Insurance
Which of the following is criteria for a Series EE savings bond?
Pays interest every 6 months
Fixed interest rates for up to 20 years or until you cash them
Length or term of maturity is variable due to no fixed interest rates
Can be taxed by federal gov't but not by state or local gov't
Which of the following is criteria for a Series HH savings bond?
Fixed interest rates for up to 20 years or until you cash them
Purchased at half the price of face value
Length or term of maturity is variable due to no fixed interest rate
You receive face value when the bond matures
Savings bonds are offered to its citizens to help fund federal spending
True
False
Which of the following is something you would NOT generally put in a safety deposit box?
Valuables
Explosives
Important documents
Sentimental keepsakes
Which is NOT a job of the U.S. Treasury Department?
Printing bills and minting coins
Tax collection
Overseeing U.S. banks
Leads foreign policy
The Federal Reserve Bank does NOT help to maintain the stability of the financial system
True
False
Which of the following is the term for a check that can't be processed because the account holder has insufficient funds?
Cleared check
Cashier's check
Bounced Check
Money order
You give the bank or credit union the full amount you want, then the bank will draw money from their own funds to give you a.....
Cashier's check
Bounced check
Cleared check
Money order
A _______ provides traditional banking services and is owned and controlled by its members
S & L Bank
Traditional Bank
Credit Union
Federal Reserve Bank
A person whose job it is to keep, inspect, and analyze financial accounts
Broker
Accountant
Banker
Teller
The use of valuable assets to secure a loan is called a student loan
True
False
What happens if you don't pay back your collateralized loan?
Forfeit the item to the lender
Get a second chance with the lender
Give the lender a different item in exchange for the original one
Not a single thing happens
Which is an example of a place that offers collateralized loans?
Pawn Shop
McDonald's
My friend's house
A-Town
A commercial/traditional bank is a bank that offers basic financial services to the general public and to companies.
True
False
What is the biggest difference between money orders and checks?
No difference. They're the same thing
Money orders can bounce. Check's can't
The minimum amount you can get on a money order is $1,001
Checks can bounce. Money orders can't
Reconciling is a fancy word for "balancing your checkbook"
True
False
What is the max amount of money the FDIC will insure?
$500,000
$250,000
$1,000,000
$750,000
Which of the following is NOT a main function of the IRS?
Print bills and mint coins
Tax return processing
Taxpayer service and enforcement
Oversee tax-exempt organizations and qualified retirement plans
Credit that is automatically renewed as debts are paid off
Installment credit
Revolving credit
3 C's of credit
Ch 7 bankruptcy
A credit rating developed by Fair Isaac & Company in the late 1950s, now widely used by lenders and employers. It consists of digit numbers ranging from 300-850
Revolving credit
Collateral
FICO score
Consumer Credit Counseling Services
Business reorganization used to help large business stay afloat while repaying creditors
Ch 7 Bankruptcy
Credit Reporting Agencies
Ch 13 Bankruptcy
Ch 11 Bankruptcy
The cost you pay on a yearly basis to borrow money, including fees, expressed as a percentage
Ch 11 Bankruptcy
Ch 7 Bankruptcy
APR
Ch 13 Bankruptcy
The forfeiture of an individual's assets (liquidation) in exchange for the discharge of debts
Ch 11 Bankruptcy
Ch 13 Bankruptcy
Revolving credit
Ch 7 Bankruptcy
Enables individuals with regular income to develop a plan to repay all or parts of their debts over a 3-5 year period
Ch 13 Bankruptcy
Ch 7 Bankruptcy
Revolving credit
Ch 11 Bankruptcy
A nonprofit organization that provides debt counseling for individuals with serious debt problems
Consumer Credit Counseling Services
Credit Reporting Agencies
Installment Credit
Ch 11 Bankruptcy
Maintain historical credit information on individuals and businesses
Revolving credit
Ch 11 Bankruptcy
Credit Reporting Agencies
Installment Credit
Capacity, Collateral, Character
Collateral
Revolving Credit
3 C's of Credit
Ch 11 Bankruptcy
A loan repaid with interest in equal periodic payments
Installment credit
Collateral
Revolving credit
Credit Reporting Agencies
A security pledge for the repayment of a loan
Revolving credit
Installment credit
Collateral
3 C's of Credit
What is something the Truth in Lending Act DOESN'T cover?
APR
Opportunity cost
Finance charge
Total repayment amount
Which is a synonym for Finance Charge?
Interest
APR
Collateral
Windfall income
Fair Debt Collection Practices Act protects you from the following except....?
Abusive practices
Unfair practices
Deceptive practices
Fair practices
______ is the word for what happens when your collateral gets taken.
Inflation
Reposession
Diversification
Reconcile
_______ is the practice of a lender using unfair tactics to take advantage of borrowers that are unable to pay back the loans reasonably
Predatory lending
Garnishment
Consumer Credit Counseling Service
Installment credit
Which one DOESN'T cause a person to default?
Unable to make timely payments
Misses payments
Avoids/stops making payments
On-time payments
If a ________ is placed on a specific item, that means that the item will be used as collateral to pay back the loan if the borrower can't pay their debt.
APR
Money order
Lien
Safety deposit box
Payday Loans are the most expensive form of credit available.
True
False
