Question Answer
Annual Percentage Rate APR; annual rate of interest
Depositor person who deposits money in a bank or who has a bank account
FDIC Federal Deposit Insurance Corporation; a federally sponsored corporationwhich insures accounts in national banks and other qualified institutions up to$100,000
Interest amount of money paid to a customer for money on deposit with a financialinstitution, or the amount of money paid by a customer to a financial institutionfor borrowing money through a loan, credit card, etc.
Required Minimum Balance least amount required to be kept on deposit in a bank account
Credit Score numerical expression based on a statistical analysis of a person’s creditfiles; represents creditworthiness in a person, which is the likelihood he/she willpay debts in a timely manner; primarily based on credit report informationfrom credit bureaus
FICO Fair Isaac Credit Organization; credit score used by most lenders
Big Ticket Purchases retail goods which have a high selling price in comparison to other items
Fixed Rate Interest interest rate does not fluctuate during the fixed rate period of the loan
Adjustable Rate Interest interest rate may fluctuate up or down during the term of the loan
Installments buyer gains use of the commodity immediately and pays for it in periodicpayments
Lump Sum single sum of money which serves as complete payment
Collateral property acceptable as security for a loan or other obligation
Application Fee money paid to the bank or mortgage company to cover expenses of processinga loan application
Credit Check when a potential lender buys a copy of one’s credit history to determinewhether or not he/she is someone with the ability and character to repay a debt
Net Worth total assets minus liabilities or debt
Stocks ownership of a corporation indicated by shares which represent a piece of thecorporation’s assets and earnings
Bonds debt securities issued by a corporation or unit of government to raise money
Portfolio total holdings of the securities, commercial paper, etc. of a financial institutionor private investor
ARP 12%/12=1%
Quarterly Every 3 months
Semi Annual Every 6 months
Annual 1 time a year
Financial Literacy

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