Money & Banking Vocabulary

What is the term for the outstanding balance on a loan, excluding interest and fees?

• Principal

• Amortization

• Collateral

• Equity

What is the term for a number, roughly between 300 and 800, that measures an individual’s credit worthiness?

• Credit Score

• Interest Rate

• Loan Term

• Debt Ratio

What is the term for the percentage of total debt payments divided by the gross income, where a higher ratio means higher the risk and possibly a higher interest rate?

• Debt-to-Income Ratio

• Net Worth Ratio

• Liquidity Ratio

• Credit Utilization Ratio

What is the term for the cost of using money?

• Interest

• Dividend

• Principal

• Commission

What is the term for a demand deposit account subject to withdrawal of funds electronically or by check?

• Checking Account

• Savings Account

• Certificate of Deposit

• Money Market Account

What is the term for a form of electronic banking offered by banks to allow account holders to access certain account information using a smart phone?

• Mobile Banking

• Tele Banking

• ATM Banking

• Net Banking

What is the term for a signature on the back of the check that transfers ownership of the check?

• Endorsement

• Counter-signature

• Authorization

• Certification

What is the term for a card issued by the bank that allows the account owner to immediately access their funds electronically?

• Debit Card

• Credit Card

• Gift Card

• Prepaid Card

What is the term for the government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System?

• Federal Deposit Insurance Corporation (FDIC)

• Federal Reserve Bank (FRB)

• Securities and Exchange Commission (SEC)

• National Credit Union Administration (NCUA)

The outstanding balance on a loan, excluding interest and fees.

• Principle

• Interest

• Amortization

• Collateral