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WorksheetsBanking
Total questions: 20
Worksheet time: 20mins
What is CD?
Divide 72 by the interest rate and hope to earn.
Interest you earn on interest.
Low-risk savings tool that can boost the amount you earn in interest.
What happens if you cash it before maturity for CD?
Building a retirement account.
Expose the bank to financial penalties on the money invested.
You pay yourself before spending any.
What is time value of money?
The sum of money is worth more now then it will be in the future.
You save it for a very long time to you reach your goal.
Checking Accounts, Savings accounts, Money Market Deposit accounts, and Certificates of Deposit,
What is Compound Interest?
State farm and Geico
Interest associated with the bank account.
Business of protecting money for others.
What is paying yourself first mean?
You pay yourself before you spend any money.
Amount of money loaned by a borrower.
Altered to effect a fraud.
What are saving tools?
Checking accounts, Saving accounts, Money Market Deposit Accounts, and Certificates of Deposit.
JPMorgan, Chase Bank of America, Wells Fargo, Citibank.
What is liquid financial products?
Public sector banks, Private sector banks, and Foreign banks
Rule of 72
Cash, Money Making Instruments, and Marketing securities
What liquid financial products are less liquid?
Savings accounts
Tax-advantaged accounts
Revolving Credit
What is rule of 72?
Personal Loans, Auto Loans, Student Loans, Mortgage Loans, Payday Loans
Take a number and divide it by the interest rate you hope to earn.
Tax anticipation loans
What does repayment of student loans mean?
As soon as the loan is fully disbursed
Social insurance programs, welfare, and business subsides
Mortgage Loans
What institutions charge the highest interest rates on loans?
Department Stores
Pawnshops
What is a Credit Union?
They Accept Deposits, Make Loans, and provide a wide array of other Financial services
A savings account where you put your money you wanna save for something new.
What is the advantage of a Credit Union?
Provide a good organization
Better Loans
Lower fees then banks
What is Overdraft Protection?
Optional service that prevents the rejection of charges to a bank account
Allow homeowners to barrow against the equality in their homes
Barrows in applying for a loan
How does Overdraft Protection work?
Charge to the original terms of your mortgage loan
The bank will automatically move funds you have available in another linked account to the overdrawn account
3 page form that you receive after you apply for the mortgage
What is the definition of reconciling a checking account mean?
Paper document that looks a lot like a regular cheque
9 digit code used by financial institutions to identify other financial institutions
Account process that compares two sets of records to check the figures are correct
What is the definition of Tax anticipation loans?
Loan offered by a private third party financial services company to individual that can prove that they are a tax refund
Payable to the bearer on demand, and the amount payable is apparent on the face of the note
What is a Debit card?
It requires a pin or personal identification number to confirm the user of the card is authorized
Type of financial product that allows you to deposit your money and typically earn a modest amount of interest
What is a check?
Machine that dispenses money to you automatically
Legal document that functions like cash
What are community's for taxes
A sum of money demanded by a government to support the government itself as well as specific facilities or services
A person who pays a tax to national, state, county, or municipal
A group of people with common interests and concern for the common good
