Term
| What are two categories of accounts? |
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Definition
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Transaction accounts and Time deposits
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Term
| What is an example of a demand deposit? |
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Definition
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Term
| What is a basic checking account? |
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Definition
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An account that offers a few simple services for minimal cost.
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Term
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Definition
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Deposits that are held for or mature at a specific time.
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Term
| What are saving accounts? |
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Definition
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Saving accounts are the time deposits with which most people are familiar.
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Term
| What does passbook saving accounts do? |
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Definition
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Help building the banking industry
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Term
| What is a passbook savings account? |
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Definition
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A ledger of activity that the teller updated when the customer made deposits or withdrawals.
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Term
| What does savings & passbook accounts allow you to do? |
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Definition
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Make deposits in person, By mail, Electronically, Direct deposit
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Term
| What are money market deposit accounts (MMDA’s)? |
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Definition
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A higher rate of interest than savings accounts, but they usually require a higher initial deposit to open an account.
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Term
| What are Certificate of Deposit (CD)? |
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Definition
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Certificate offered by a bank that guarantees payment of a specified interest rate until designated date in the future.
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Term
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Definition
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The price paid for the use of money
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Term
| What is interest also known as? |
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Definition
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Expressed as a rate or percentage of the total amount of money in use, and is calculated overtime.
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Term
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Definition
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The beginning amount of money being used to calculate interest.
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Term
| What is the basic formula to calculate interest? |
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Definition
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P(principle) x R(rate) x T (time) B
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Term
| How do you find interest? |
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Definition
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Multiply the principle by the rate, expressed as a percentage, by the time, usually expressed in yrs or part of yrs.
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Term
| What is the formula for calculating |
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Definition
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Term
| What does each letter stand for? |
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Definition
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F- Future value, P- principle, R- Rate, and N- is the number of intervals.
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Term
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Definition
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Money includes checks, ledgers transfers, and even credit.
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Term
| How does reserve requirements impact the flow of money? |
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Definition
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If reserve requirements are high than the money supply contracts (comes back in itself) have less money to lend out.
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Term
| What is a limitation of reserve requirements? |
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Definition
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The federal reserve can effectively take money out of the economy.
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Term
| What are one of the ways the fed can influence the money supple and the flow of deposits? |
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Definition
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The fed can out more money in the economy by buying securities, or by creating new money.
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Term
| What is the discount rate? |
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Definition
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The rate the fed charges banks for loans
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Term
| What does Account rules do? |
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Definition
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explain characteristics of each type of account.
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Term
| What is deposite rate schedules? |
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Definition
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list interest rates in effect at the time for various types of accounts.
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