Banks are regulated more strictly than other businesses.

User-owned, nonprofit, cooperative financial institutions are called savings and loan associations.

Services provided by check-cashing outlets are generally less expensive than those provided by banks and savings and loans.

Individuals cannot do business with Federal Reserve Banks.

The interest rate that the Fed charges member banks is called the simple interest rate.

You should avoid making checks payable to “cash” because that allows anyone to cash the check if it is stolen or lost.

A cashier’s check is a personal check for which a bank has guaranteed payment.

Banks make loans because most of their income is from the interest they charge borrowers.

A credit application is a form on which you provide information needed by a lender to make a decision about granting credit.

Credit allows you to have the item you want right away without waiting until you can save up enough money to buy it.

It is illegal for businesses that extend credit to pass along the costs of providing credit to their customers.

Installment loans always involve paying the same amount each month.

The annual percentage rate (APR) is the total dollar cost of credit stated on a yearly basis.

Under the Fair Credit Billing Act, you may withhold payment of any balance due on defective merchandise or services purchased with a credit card.

Debt repayment plans often benefit the debtor, but rarely benefit the creditor.

Which of the following is NOT a deposit institution?

One of the most important activities of the Federal Reserve System is to

The paying of checks among different banks in different locations is known as

Mario has a checking account at First National Bank. He writes a check on his account to Frieda to pay his monthly rent. Frieda deposits the check into her savings account at Americana Bank. In this case, the drawee is

This type of money order is issued by a number of organizations, such as supermarkets, pharmacies, and convenience stores.

A legal arrangement in which money or other property is turned over to a financial institution for safekeeping to be managed for someone is called a(n)

Marissa uses her credit card to charge a new tennis racket she is purchasing. Marissa is using

Which of the following is NOT generally a benefit of using credit?

The amount of a loan is called the

Which of the following federal laws requires lenders to tell you the cost of credit before you sign a credit agreement?

Often called a full-service bank, a(n) ____________________ bank offers a wide range of financial services, such as checking and savings accounts, loans, and safe-deposit boxes.

Interest that the Federal Reserve charges member banks on money borrowed is called the ____________________ rate.

A(n) ____________________ order is a written notice from the drawer telling the bank not to pay a certain check.

A(n) ____________________ is a form of payment that orders the issuing agency to pay the amount printed on the form to a specified payee.

____________________ is the amount that banks pay you for the use of your money.

The privilege of using someone else’s money for a period of time is called ____________________.

A credit ____________________ is a business or individual from whom you have received credit in the past and who is able and willing to provide information about your creditworthiness.

Loans that are repaid in partial payments are called ____________________ (or consumer) loans.

The ____________________ is the total dollar cost of credit.

A credit ____________________ is a professional who can suggest actions that can be taken to reduce spending and eliminate difficulties with credit.