Term
| What is a traction account? |
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Definition
| Is an account an account that allows transaction to occur at any time and in any number? |
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Term
| What is Interest baring checking account |
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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. |
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Term
| What other transaction as demand deposit transaction? |
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Definition
• Traveler Checks
• ATS (automatic transfer service) |
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Term
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Definition
| By writing a check a depositor can withdraw money by given a written notice to the bank. |
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Term
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Definition
| • Money include checks ledger transfers and even credit cared |
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Term
| What are the two ways that the feds can influence the money supply |
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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 |
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Term
| What are some limitations of reserve requirements? |
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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 |
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Term
| How do you calculate interes? |
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Definition
P*R*T=I
P=Pricipal
R=Rate
T=Time
I= Iterest |
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Term
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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 |
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Term
| What is the discount rate |
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Definition
| • Is the rate the fed charge to banks |
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Term
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Definition
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Term
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Definition
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Term
| What are two categories of accounts? |
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Definition
| Transaction account and time deposits. |
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Term
| What is a basic check account? |
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Definition
It’s an account offer a few simple services for minimal cost.
• Some are free
• Some maybe free if a minimum |
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Term
| Why is it important for consumer to look closely for fee and services charges to saving account |
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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 |
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Term
| What is example of demand deposit? |
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Definition
| A transaction is an example of demand deposit because is payable on demand whenever the person choose. |
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Term
| What are some types of documents typically included? |
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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 |
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Term
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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. |
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Term
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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 |
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Term
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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. |
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