| A | B |
|---|
| online banking | the use of a computer to manage finanaces through an Internet connection |
| electronic funds transfer (EFT) | the automatic transfer of funds to and from a person's bank accounts electronically |
| debit card | a card that allows the immediate withdrawal of funds from a checking account without writing a check |
| smart card | an advanced form of debit card with an embedded computer chip to track certain purchasing information |
| cash card | a prepaid type of debit card |
| endorse | signing one's name on the back of the check along the left end within the area indicated |
| canceled check | a check that has been processed/paid by the bank |
| traveler's check | a convenient type of check used by travelers that can be replaced if lost or stolen |
| cashier's check | a check drawn on a bank's own funds and signed by a bank officer |
| certified check | a personal check with a bank's guarantee taht the check will be paid |
| money order | an order for a specific amount of money payable to a specific payee |
| simple interest | interest ispaid only on the money initially deposited in the account |
| compound interest | interest paid on an initial deposit as well as on interest already earned |
| certificate of deposit | money deposited for a set period of time that earns a set rate of interest |
| inflation | a general increase in prices |
| Consumer Price Index (CPI) | a measure of the average change in prices for consumer goods and services over time |
| securities | investments that represent either ownership or indebtedness, such as stocks, bonds, mutual funds, and money market funds |
| stock | a share in the ownership of a corporation |
| bond | a certificate of debt or obligation issued by a corporation or a government |
| mutual fund | a company that collects money from many investors and invests it in securities |
| money market fund | a type of mutual fund that deals only in high-interest, short-term investments, such as government securities and certificates of deposit |
| 401(k) plan | retirement savings plan offered through an employer |
| individual retirement account (IRA) | a type of retirement savings plan for employed people; can be tax-deferred or pre-taxed |
| Keogh plan | a tax-deferred retirement plan for self-employed people or employees fo unincorporated companies that do not have their own pension plans |
