Page 81 - Book4E

opportunities to low-income individuals who could not get loans at other banks.
Loan: A sum of money that is borrowed and which is expected to be paid back to the lender with interest.
Money market account: A savings account that typically pays higher interest than a traditional account. It requires a higher minimum balance to open an account, and monthly transactions are restricted.
Money order: A printed order purchased from a third party such as
a convenience store or post-office which can be used for payment just like a personal check.
Mutual Funds: A professionally managed investment program funded by shareholders that trades in diversified holdings such as stocks, bonds, businesses, and other financial opportunities.
Mutual savings bank: An organization established to provide a safe place for working people to save their money and earn interest rather than to save with the intent of purchasing a home. These banks offer a wide variety of loans including automobiles, home equity, home improvement, educational, and credit cards.
Overdraft protection: If you don’t have enough funds in your account when a check you have written is presented, your financial institution will honor the check and charge you interest until you have deposited enough to cover the amount of the check.
Pay-by-phone service: Some institutions have a service that allows you to call in and pay your bills over the phone. You tell the institution how much to send to each of your creditors.
Payday loan: A small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. Typical loans are for a few hundred dollars and are due in two weeks, with interest rates of up to 400%. The lender also usually charges a service fee for the transaction.
Glossary 71