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Details Title: Banking Notes Description: Chapter 4 banking questions Total Flash Cards: 20 Created: 04/27/2006 06:38:31	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term What is a traction account? Definition Is an account an account that allows transaction to occur at any time and in any number? Term What is Interest baring checking account Definition Is an widely account. They pay interest on the balance deposited in the account but usually only deposited balance is maintained at or above the required level. Term What other transaction as demand deposit transaction? Definition • Traveler Checks • ATS (automatic transfer service) Term What does a check do? Definition By writing a check a depositor can withdraw money by given a written notice to the bank. Term What does money include? Definition • Money include checks ledger transfers and even credit cared Term What are the two ways that the feds can influence the money supply Definition • 1 the feds can put more money in the economy by buying securities and or creating new money call raw money. • The fed can take money out of economy if they think it need to slow economy Term What are some limitations of reserve requirements? Definition • Reserve requirements do not change that often and are not as much a factor in bank lending as general economic conditions. • Reserve requirements only to apply • The fed does not control other for commences Term How do you calculate interes? Definition P*R*T=I P=Pricipal R=Rate T=Time I= Iterest Term What is Interest? Definition When you add interest to the pricipal and pay interest on pay iterest on the tota. This is the most powerful tool in savings Term What is the discount rate Definition • Is the rate the fed charge to banks Term What is APY Definition Annual Percentage Yeild Term What is APR Definition Annual Percentage Rate Term What are two categories of accounts? Definition Transaction account and time deposits. Term What is a basic check account? Definition It’s an account offer a few simple services for minimal cost. • Some are free • Some maybe free if a minimum Term Why is it important for consumer to look closely for fee and services charges to saving account Definition It is possible that basic may cost more money to operate than another type of account if there are many transaction raising the fees Term What is example of demand deposit? Definition A transaction is an example of demand deposit because is payable on demand whenever the person choose. Term What are some types of documents typically included? Definition • Account rules: explain characteristics of each type of account. • Deposit rate schedules: list interest rates in effect at the time for various types of accounts. • Fee schedules: show all charger that apply to each specific type of deposit account • Check hold policies: explains when funds will be available for use by the consumer Term Account Rules: Definition • Reference to Governing Documents: agree to abide by the rules as set forth in the rest of the governing documents. • Signature Policies: Signature card kept on file (all parties on the account) • Opening and Closing accounts: may include a specified minimum opening deposit, and the right not to open and account for a person if the bank chooses. • Deposit Collection: Not the job of the bank to collect deposits beyond using reasonable care in their processing. Term Account Rules: Definition • Minimum Balance/service charges: specifies exactly the terms of when failure to maintain minimum balance charges apply. • Withdrawal Policies: requirements for withdrawing funds from the bank are explained here • Check Policies: requirements for accurate dating of checks and timely deposit or presentation of the, • Account Statement Policies: policies that the bank statement sent by the bank Term Account Rules: Definition • Other Policies: account rules usually include various other policies including stop-payment. • Waivers: contain notices about various waivers, such a the customer agreeing to waiver protest of dishonored items or the banks willingness to waiver certain fees.