Lesson 9 Financial Services Quiz

Lending and borrowing that occurs directly between individuals without the participation of a traditional financial institution.

A legal process of debt collection in which a person's money and/or property is taken for payment of a debt.  Typically, a creditor will require a third party to turn over to the cerditor, a debtor's money, wages, and/or property.  Wage garnishment is the most common type of garnishment.

A business that provides consumer goods in exchange for installment payments.  This business rents items with the condition that the renter will own the item if the term of rent is finished. 

A company that offers small short-term loans secured by the borrower's vehicle; usually has very high interest rates.  The borrower generally keeps possession of the car, but turns the title over to the lender as collateral.  If the borrower is unable to repay the loan at maturity, the lender will ofthen renew the loan while adding more charges.

Cards that behave like credit cards but that are prepaid.  They are somewhat similar to debit cards in that in order to make purchases, there needs to be enough money in the account that is attached to the card.

A note for a certain amount of money issued by a bank or a company specializing in this type of transaction. 

Companies that cash checks, including payroll, personal, and government checks, for a fee.  Outlets cash checks for about 10% of the check with a minimum charge of $5.

Companies that offer small cash advances that are intended to cover a borrower's expenses until her next payday.