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Questions and Answers
What was the denomination of the fake bill dispensed in gumball machines in the 1970s?
What was the denomination of the fake bill dispensed in gumball machines in the 1970s?
What was the altered name of the country on the fake bill?
What was the altered name of the country on the fake bill?
What must you do to cash a check that has been issued to you?
What must you do to cash a check that has been issued to you?
What is a stale check?
What is a stale check?
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What is the meaning of 'change' in a financial transaction?
What is the meaning of 'change' in a financial transaction?
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Which of the following best describes a credit card?
Which of the following best describes a credit card?
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What is a 'bad cheque'?
What is a 'bad cheque'?
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Which term refers to payment in goods or services rather than cash?
Which term refers to payment in goods or services rather than cash?
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What term describes the time between the deposit of a check and its payment?
What term describes the time between the deposit of a check and its payment?
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Which of the following best defines money hoarding?
Which of the following best defines money hoarding?
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What does it mean to overdraw an account?
What does it mean to overdraw an account?
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What is an overdraft?
What is an overdraft?
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What does 'floating' refer to in financial terms?
What does 'floating' refer to in financial terms?
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Which of these scenarios exemplifies hoarding behavior?
Which of these scenarios exemplifies hoarding behavior?
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If someone is 'banking with' a certain institution, what does this imply?
If someone is 'banking with' a certain institution, what does this imply?
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When a bond pays interest in kind (PIK), what does this imply?
When a bond pays interest in kind (PIK), what does this imply?
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What is the main function of an Export Credit Agency (ECA)?
What is the main function of an Export Credit Agency (ECA)?
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What does 'frozen credit markets' mean for consumers?
What does 'frozen credit markets' mean for consumers?
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Who typically benefits from microcredit?
Who typically benefits from microcredit?
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What defines revolving credit?
What defines revolving credit?
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What is a secured loan?
What is a secured loan?
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What happens if a borrower defaults on a secured loan?
What happens if a borrower defaults on a secured loan?
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What are bridge loans typically used for?
What are bridge loans typically used for?
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Which option best describes trade credit insurance?
Which option best describes trade credit insurance?
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What does it mean for a debtor to default?
What does it mean for a debtor to default?
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Which term describes a situation where a debtor is unable to pay their debts?
Which term describes a situation where a debtor is unable to pay their debts?
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What is the purpose of the foreclosure process?
What is the purpose of the foreclosure process?
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What is typically contained in an IOU?
What is typically contained in an IOU?
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Which of the following describes accrued interest?
Which of the following describes accrued interest?
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What characterizes a variable-rate loan?
What characterizes a variable-rate loan?
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Which agency is typically associated with threatening behavior in payment collection?
Which agency is typically associated with threatening behavior in payment collection?
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What happens when a lender files a public default notice?
What happens when a lender files a public default notice?
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What is deferred interest?
What is deferred interest?
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What distinguishes a fixed interest rate loan?
What distinguishes a fixed interest rate loan?
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What is a characteristic of installment credit?
What is a characteristic of installment credit?
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What is the role of Freddie Mac?
What is the role of Freddie Mac?
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What does the term 'indebtedness' refer to?
What does the term 'indebtedness' refer to?
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Why is the secondary mortgage market important?
Why is the secondary mortgage market important?
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How often does deferred interest typically accrue?
How often does deferred interest typically accrue?
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Which type of loan does not have a fixed number of payments?
Which type of loan does not have a fixed number of payments?
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Study Notes
Counterfeit Money
- In the 1970s, a fake "TWE DOLLARS" bill was circulated in gumball machines.
- The counterfeit bill was designed to resemble a real twenty-dollar bill with a portrait of Andrew Jackson.
- The fake bill labeled the country as "The Untied States of Anemia."
Banking
- Payment in kind: Paying for goods or services with something other than cash.
- Endorsement: Signing the back of a check before cashing it.
- Bad/Bouncing check: A check returned unpaid due to insufficient funds in the account.
- Stale check: A check that is over six months old; banks are not obligated to pay it.
- Change: The balance of money received when the amount paid exceeds the amount due.
- Coin: A piece of metal used as currency.
- Credit card: A plastic card used for purchases with a pre-determined credit limit.
- Float: The time checks are in transit between deposit and payment.
- Hoard money: Accumulating money to hold rather than spend or invest.
- Lodge/Deposit money: Placing money into a bank account.
- Open an account: Begin a new bank account.
- Bank with: Use a particular bank for personal finances.
- Overdraft: Spending more money than is currently available in your account.
- Overdraw: Spending more money than is available in your account.
- Export/Import credit: Loans, guarantees, and insurance provided to support companies involved in exporting and importing goods.
- Frozen credit: Difficult or impossible to obtain loans due to a lack of available lending.
- Microcredit: Small loans extended to low-income individuals or those without established credit.
- Revolving credit: A credit line with a varying available balance, such as credit cards.
- Secured loan: A loan backed by an asset (collateral) which can be claimed by the lender if the borrower defaults.
- Unsecured loan: A loan not backed by an asset, often with higher interest rates.
- Service a debt: Make payments toward a debt.
- Debt collection: The process of recovering unpaid debts.
- Debtor: A person who owes money.
- Defaulter: A person who fails to pay back a loan.
- Foreclosure: A process allowing a lender to recover the amount owed on a defaulted loan by selling or taking possession of the property securing the loan.
- IOU ( I owe you): A written acknowledgment of a debt typically used among acquaintances.
- Accrued interest: Interest that has accumulated but not yet been paid.
- Increase/Reduce interest rate: Increasing/Decreasing the interest rate on a loan.
- Deferred/Outstanding interest: Unpaid interest accumulated on a loan.
- Fixed interest: A loan with an interest rate that does not change during the fixed period.
- Indebtedness: Existing debt.
- Installment: A fixed regular payment toward a debt.
- Lender: A person or institution that provides a loan.
- Loan: A sum of money borrowed with an agreement to repay with interest.
Home Loan/Real Estate Loan:
- Freddie Mac (Federal Home Loan Mortgage Corporation): A government-sponsored enterprise created in 1970 to expand the secondary mortgage market in the United States.
- The secondary mortgage market involves buying existing mortgages, pooling them, and selling them as mortgage-backed securities.
- Freddie Mac's activities increase money available for new home purchases.
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Description
Explore the intriguing world of counterfeit money from the 1970s, including the fake 'TWE DOLLARS' bill that circulated in gumball machines. Test your knowledge on various banking terms and concepts such as payment in kind, endorsements, and bounced checks.
