test 2 | AHRM 2304 - Family Financial Management, Quizzes of Financial Management

Download test 2 | AHRM 2304 - Family Financial Management and more Quizzes Financial Management in PDF only on Docsity! TERM 1 why are some of us unbanked? DEFINITION 1 black listedbad customer serviceprevent bad creditif it's in your pocket you're more than likely to spend itstedents may be dependent and parents give them a cash allowancethey might not know how TERM 2 what is unbanked? DEFINITION 2 no checking account17 million americans are underbanked TERM 3 underbanked DEFINITION 3 supplement their bank account with alternative financial services51 million are under bankedthey have payday loans TERM 4 6 reasons why individuals may be unbanked/under DEFINITION 4 black listed (fail background test)young consumers (1/2 between 18-24 are un/underbanked)some try to avoid debt collectorsfed up with feesjobless (may have minimums you have to meet in certain places)bad customer service experience TERM 5 monetary asset management DEFINITION 5 cash management encompasses how you manage your moneygoal is to maximize your earnings (minimize fees, keep money safe)liquidity and safetychecking accounts(low cost interest earning current living expenses)savings accounts (interest earning reserve for unexpected expenses)money market accounts (pays higher interest rates than checking/saving accounts) TERM 6 types of financial institutions DEFINITION 6 commerical bankscredit unionssavings banks (papular in the 80's not many left)other financial institutions (mutual funds, stock brokerage firms, insurance companies) TERM 7 how safe is your money? DEFINITION 7 deposits in depository institutions are insured against loss of both the amount on deposit and accrued interest by various insurance funds TERM 8 federal deposit insurance corporation DEFINITION 8 insures accounts at banks and savings banks TERM 9 national credit union administration DEFINITION 9 insures accounts at credit unions TERM 10 cash management products DEFINITION 10 checking accounts demand deposits with sufficient funds, banks must immediately pay the amount of your debit card transaction, check, or atm withdrawal TERM 21 money market deposit accounts DEFINITION 21 offered by depository institutionsfederally insuredslightly higher interest than super now accounts, limited transactions TERM 22 money market mutual funds DEFINITION 22 offered by investment companiesnot federally insuredinterest bearing limited checks TERM 23 asset management accounts DEFINITION 23 known as all in one accountinsured by sipcinsures upward of 500,000primarily offered through depository brokerage firms; consolidate financial activitiesinterest bearing; check writing privileges TERM 24 start your savings program DEFINITION 24 pay yourself first (save money)emergency fund (3-6 months of living expenses saved in our emergency fund)regularly set aside funds for financial goalsuse direct deposits and automatic transfers(employers direct deposit paychecks)choose instruments best suited to your goals and time horizon(noone can make financial decision for you) TERM 25 lost or stolen card DEFINITION 25 notify bank within 2 days- limits loss to 50notify bank within 2-60 days- limits loss to 500- may lose everything TERM 26 errors DEFINITION 26 notify bank within 60 days TERM 27 electronic funds transfer systems make possible DEFINITION 27 atm cardsdbit cardsprepaid cardsstore value cardssmart cardcredit cards TERM 28 atm cards DEFINITION 28 attached to a checking or savings accountpin number TERM 29 debit cards DEFINITION 29 usually linked to checking accountfunds are immediately transferred TERM 30 prepaid cards DEFINITION 30 usually have fees associated with it TERM 31 store value cards DEFINITION 31 work for retailer/store they give you funds to shop there TERM 32 smart card DEFINITION 32 like hokie passport TERM 33 credit cards DEFINITION 33 interesthave to pay the money backeverything else uses money you already havethis is essentially credit that you have to pay back with interest TERM 34 is there an emotional side to money? DEFINITION 34 communicate powerstabilityfreedomhappinesssecurityanxiety TERM 35 what you should find out about your spouse when it comes to money DEFINITION 35 debtwhat they spend onfinancial literacyhow they want to invest TERM 46 installment credit DEFINITION 46 merchandise and services are paid in two or more regularly scheduled payment amountsinterest is included TERM 47 revolving credit DEFINITION 47 open account credit offered by banks and other financial institutionsusually offer higher credit lines and lower interest rates than credit cardsmoney accessed writing checks direct deposits or electronic transferalso known as open ended credit TERM 48 service credit DEFINITION 48 granted to consumers by dentists physicians and other service providersinterest is usually not chargedutility companies and medical services TERM 49 credit card act of 2009 DEFINITION 49 credit card accountability reponsibility and disclosure actprotects consumers against some of the worst abuses by credit card lendersprotects under 21 consumersrate increase protectiondebt pay off transparency TERM 50 laws on credit DEFINITION 50 limited liability on credit cardsmax liability $50 per cardas a gesture of good will most companies waive the 50 chargeif you notify the credicard companies within 2 days you are not legally responsible for any charges TERM 51 credit cards DEFINITION 51 bank credit cardsretail charge cardstravel and entertainment cardsprestige cardsaffinity cards TERM 52 hard pool DEFINITION 52 you are applying for credit or a loan TERM 53 soft pool DEFINITION 53 someone may be trying to extend credit to you TERM 54 consumer loans DEFINITION 54 depository institutions lend money to their banking customerssales finance companies lend money to buy cosnumer productsconsumer finance companies make small cash loans TERM 55 steps in opening an account DEFINITION 55 complete and submit applicationlender investigates creditworthinesslender obtain credit reportlender makes credit decision, may use credit scoring TERM 56 truth in lending act DEFINITION 56 requires lenders to disclose to credit applicants both the interest rate expressed and the finance charges TERM 57 unsecured loan DEFINITION 57 signature loanbased on signature, not like this anymoregranted solely based on the food credit character of the borrower TERM 58 secured loan DEFINITION 58 require a cosigner or collateral TERM 59 5 leading complaints DEFINITION 59 identity theftdebt collectionbanks and lendersimposter scamstelephone and mobile services