Accounting: Bank on It Advanced Text Questions And Answers well Detailed

Put money in the bank - ANSWERSDeposit Take money out the bank - ANSWERSWithdrawal How much money you have in the bank - ANSWERSBalance Money charged for services - ANSWERSFees Withdrawing more money than you have in your account - ANSWERSOverdraft A legal agreement in which a person borrows money to buy property (such as a house) and pays back the money over a period of years with interest - ANSWERSMortgage The amount charged by a lender to a borrower for the use of money - ANSWERSInterest Rate Interest earned only on money deposited into a savings account, called the principle - ANSWERSSimple Interest Interest earned on both the principle and any interest earned on the principle - ANSWERSCompounding Interest Is the percentage of increase in the value of your savings from earned interest - ANSWERSRate of Return A government agency that insures bank accounts - ANSWERSFDIC (Federal Deposit Insurance Corporation) Is an electronic telecommunications device that enables a customer of a financial institution to perform financial transactions without the need of another person - ANSWERSATM (Automated Teller Machine) A secret numeric password (4-6 numbers) shared between a user and a system that can be used to identify the user of a system. - ANSWERSPIN (Personal Identification Number) A financial institution that accepts deposits and channels those deposits into lending activities such as loans. - ANSWERSBank A cooperative association owned by its members that makes small loans to its members at low interest rates and offers other banking services such as savings and checking accounts - ANSWERSCredit Union Obtains the majority of its funds from the savings of its customers and uses these deposits to originate home mortgages - ANSWERSThrift (or savings and loan)