Banking/Depository Institutions

Risk of loss- a term that is used to determine which party should be responsible for damage occurring to products after a service transaction has been completed

Interest- The amount of money that is either gained or lost when accessing services offered by a depository institution

Federal Reserve Bank- part of the central banking system in the United States

Depository Institutions- Business which offers multiple services in banking and finance.

Credit Union- these are non profit cooperative institutions owned by their members

Interest rate- the percentage used annually t calculate the total interest either gained or lost from an account supplied by depository institution

FDIC- a federal government agency which insures federal charted banks and savings and loans against loss.

Savings and loans association- primary focus is providing loans and mortgages to customers

NCUA- provides insurance protection for credit unions just like FDIC for banks

Mortgage- loan for a home

Saving account- designed so that money typically is deposited to earn interest

Stock- Ownership, represented by shares in a corporation

Loan- money is borrowed and paid back to the bank with interest