Foolproof Module 5 notes Questions and Answers 100- Correct
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Foolproof
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Foolproof
Foolproof Module 5 notes Questions and Answers 100- Correct
You need to know who might protect you if you get ripped off.
Who regulates and watches all this checking account and financial transaction stuff?
The Federal Reserve Bank (aka "The Fed")
You probably won't ever deal with the Federal...
Foolproof Module 5 notes Questions and
Answers 100% Correct
You need to know who might protect you if you get ripped off.
Who regulates and watches all this checking account and financial transaction stuff? -
answer The Federal Reserve Bank (aka "The Fed")
You probably won't ever deal with the Federal Reserve directly.
- The Fed isn't actually a bank you can walk into and deposit your paycheck. It is the
central bank of the United States, created and overseen by Congress. It provides our
country with a safer, more flexible and more stable monetary and financial system.
The "Fed" mainly sets interests rates — the price everyone pays to borrow money.
The Office of the Comptroller of the Currency (OCC)
-You won't have to deal with these people.
The OCC regulates and supervises all our banks, credit unions and other financial
institutions.
The Federal Deposit Insurance Corporation (FDIC)
- The FDIC is actually really important for you. The FDIC protects your money when you
put it in a financial institution.
For instance, if a financial institution goes broke, the FDIC generally makes sure you get
your money back (as long as it isn't over $250,000).
National Credit Union Administration (NCUA)
The NCUA does all that regulatory stuff for credit unions, instead of banks.
The Consumer Financial Protection Bureau (CFPB)
- You can connect directly with the CFPB if you think you've been treated unfairly when
it comes to money stuff.
They oversee financial products and services that are offered to consumers.
They make sure the banks stick to the rules and treat consumers fairly.
Pretty straightforward, right?
Consumer Financial Protection Bureau (CFPB) - answer This is an organization of
national bank examiners, charged with maintaining the data and soundness of the
banks they supervise.
Federal Deposit Insurance Corporation (FDIC) - answer This agency preserves and
promotes public confidence in the U.S. financial system by insuring deposits in banks
and thrift institutions for at least $250,000.
, Federal Reserve Bank (The Fed) - answer This is the United States central bank. It
helps maintain high U.S. employment and stable prices for consumers.
The Office of the Comptroller of the Currency (OCC) - answerThis agency writes and
enforces rules for financial institutions, examines both bank and non-bank financial
institutions, monitors and reports on markets, as well as collects and tracks consumer
complaints.
- answerBig tip. It doesn't do much good to file a complaint, if you haven't kept really
detailed records. So, keep records of everything.
The Big Difference In Credit Cards And Debit/Atm Cards: - answerWith a debit card,
you draw out your own money.
You spend your own money.
You don't get a bill when you spend your own money.
Hey, it's your money!
With a credit card, you always borrow money.
You always create debt when you use a credit card.
You always get a bill when you charge something on a credit card.
Hey, it's the credit card company's money you're spending.
Every time you use a credit card - even to buy a hamburger - you are borrowing money.
- answerYou get an interest-free loan if and only if you pay off the entire amount of your
bill before the end of the grace period.
the grace period - answerHow many days you have to pay your credit card bill in full
before you're charged a lot of interest.
- answerDon't delay paying your credit card bill.
Pay your credit card bill the day it comes.
Pay your credit card bill the day it comes, whether you're paying all the bill or part of the
bill.
- answerDon't ever charge more than you can pay off each month.
Don't get in this trouble again.
- answerYour credit limit is the maximum amount you could owe your credit card
company. 00:30 01:15
For instance, your credit card company says your credit limit is a $1,000. 00:39
This means you could charge up to $1,000 on your card. 00:44 01:15
credit limit examples - answerYour credit limit is $1,000. 00:53
If you borrow $400 today, you could borrow an additional $600 tomorrow. 00:55
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