Term
| What is the most common form of a transaction account? |
|
Definition
|
|
Term
| What two categories does Deposit accounts generally fall into? |
|
Definition
| Transaction accounts, and time deposits. |
|
|
Term
| The higher the interest offered the higher the ___________? |
|
Definition
| The higher the minimum balance required. |
|
|
Term
| What is a Transaction Account? |
|
Definition
| An account that allows transactions to occur at any time and in any number. |
|
|
Term
| What is a Demand Deposit? |
|
Definition
| a deposit that are payable on demand whenever the depositor chooses. |
|
|
Term
| What happens if your balance falls below the level on any day of the month? |
|
Definition
| Higher service charges apply. |
|
|
Term
|
Definition
| Automatic Transfer Service |
|
|
Term
|
Definition
| Deposits that are held for or mature at a specified time. |
|
|
Term
| What is Money Market deposit accounts? |
|
Definition
| they offer a higher rate of interest than savings accounts, but they usally require higher initial deposit to open an account. |
|
|
Term
| What is a Certificate of Deposit? |
|
Definition
| a certificate offered by a bank that guarntees payment of a specified interest rates until a date in the future. |
|
|
Term
|
Definition
| the price paid for the use of money. |
|
|
Term
| What is the basic formula for caculating interest? |
|
Definition
|
|
Term
| What does the letter in the basic formula for caculating interest represent? |
|
Definition
| P is principal, R is rate, T is time, and I is interest. |
|
|
Term
| What is compound Interest? |
|
Definition
| Adding interest to the principal and paying interest on the new total. |
|
|
Term
|
Definition
|
|
Term
| What is annual percentage rate? |
|
Definition
| the nominal rate on which interest is calculated per year. |
|
|
Term
|
Definition
|
|
Term
| What serves as the nation's central bank? |
|
Definition
| The Federal Reserve or Fed. |
|
|
Term
| WHat do you call it when banks make and receive deposits on eachother? |
|
Definition
|
|
Term
| Who determines even interest rates? |
|
Definition
|
|
Term
| How does the Federal reserve put more money into the economy? |
|
Definition
| By buying the U.S. government securites on open market. |
|
|
