personal finance chapter 5 vocabulary review. a bank card that lets the owner make purchases from an...
Post on 20-Dec-2015
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Money electronically added to an account; no currency or paper checks are involved
Automatic deposit
Interest that is earned on both principal and interest previously earned on savings
Compound interest
Money deducted from an account and electronically transferred to another person
Automatic withdrawal
A demand deposit that allows the account holder easy access to the money and allows checks to be written on the account
Checking account
A check that is returned by the bank for non-sufficient funds; also called a bad check
Bounced check
A written order to a bank to pay the stated amount to the person or business named on the check from a certain account
check
A deposit of money set aside for a fixed amount of tie at a fixed interest rate
Certificate of deposit (CD)
A demand deposit that has some restrictions as to how quickly or easily you can get your money
Savings account
A math formula that calculates how long it will take for money earning a set rate of interest to double
Rule of 72
A signature or instructions written on the back of a check authorizing a bank to cash or deposit the check
endorsement
The interest rate that banks charge to their most creditworthy business customers, such as corporations
Prime rate
Actions taken by the federal reserve to influence money and credit conditions in the economy in an effort to affect employment levels and prices
Monetary policy