Banking (common words/expressions) - vocabulary matching 1

📚 Key vocabulary
collateral — an asset pledged by a borrower as security for a loan, which the lender can seize if the loan is not repaid
interest rate — the percentage charged on a loan or paid on a deposit, typically expressed as an annual rate
liquidity — the ease with which an asset can be converted into cash without significantly affecting its value
credit rating — an assessment of a borrower's ability to repay debt, assigned by a credit agency
overdraft — a situation where a bank account balance falls below zero, allowing withdrawals beyond available funds
prime rate — the benchmark interest rate that commercial banks charge their most creditworthy customers
wire transfer — an electronic method of transferring funds directly from one bank account to another
certificate of deposit (CD) — a savings product that holds a fixed amount of money for a fixed period in exchange for a higher interest rate
compound interest — interest calculated on both the initial principal and the accumulated interest from previous periods
mortgage — a loan secured by real estate property, typically repaid over 15 to 30 years

READY TO PRACTICE? LET’S GO!

Match each definition with the letter of one of the following:
a - teller
b - cash a check
c - make a withdrawal
d - make a deposit
e - bounce a check
f - wire transfer
g - transaction
h - balance
i - branch
j - annual

1. an electronic method of transferring money between accounts or people → ✓

2. a bank employee who deals directly with customers and handles payments → ✓

3. the amount of money currently held in an account → ✓

4. to receive cash in exchange for a check → ✓

5. to write a check without sufficient funds, causing it to be rejected → ✓

6. an activity such as a payment, withdrawal, or deposit involving an account → ✓

7. to add money to an account → ✓

8. a local office of a larger bank → ✓

9. occurring once every year; yearly → ✓

10. to take money out of an account → ✓