Term
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Definition
| Time deposits are deposits that are held for or mature are a specified time. Time deposits include savings accounts which are less liquid than checkable deposits. |
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Term
| What are statement savings accounts? |
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Definition
| They provide a monthly or quarterly computerized statement detailing all account activity. |
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Term
| What is a passbook savings account? |
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Definition
| Provided a ledger of activity that the teller up dated when the customer made deposits or withdrawals. |
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Term
| What is a saving account? |
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Definition
| An account when a deposit put money into collect interest. Provide a monthly or quarterly computerized statement detailing all account activity, |
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Term
| What is a Share-Draft account |
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Definition
| Functions like a checking account, and a share- certificate is equivalent to certificate of deposit. |
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Term
| Where is the safest place to keep your money? Why? |
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Definition
| Savings accounts because, you can get your money at any time, so liquidity is high but the low rate of interest makes other time deposits more attractive. |
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Term
| What are Money market accounts? |
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Definition
| 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 is Certificate of Deposit? And what is the date called? |
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Definition
| A certificate offered by a bank that guarantees payment of a specified interest rate until a designated date in the future. This day is called the maturity date. |
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Term
| What is a share certificate equivalent to? |
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Definition
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Term
| What are two categories of Accounts? |
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Definition
| Transaction accounts and Time deposits. |
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Term
| What is a transaction account? |
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Definition
| An account that allows transactions to occur at any time and in any number. |
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Term
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Definition
| By writing a check a depositor can withdraw money by giving written notice to the bank to pay a named person a specified amount from your account |
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Term
| What is a basic checking account? |
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Definition
An account that offers a few simple services for minimal cost.
• Some are free
• Some maybe free if a minimum balance is maintained.
• Some have a basic fee and price extra services per item. |
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Term
| What is an interest bearing checking account? |
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Definition
| A checking account that pays interest on the balance deposited in the account. But usually only if the deposited balance is maintained at or above a required level. |
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Term
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Definition
| The price paid for the use of money. |
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Term
| How do you calculate interest? |
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Definition
| P * R * T = I (Principal * Rate * Time = Income) |
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Term
| What is compound interest? |
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Definition
| Adding interest to the principal and paying interest on the new total. |
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Term
| What is compound interest? |
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Definition
| Adding interest to the principal and paying interest on the new total. |
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Term
| How do you calculate compound interest? |
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Definition
| F=P(1+R)^n ( Future value = Principal (1+ Rate)^Number of intervals. |
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Term
| What does APR and APY stand for? |
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Definition
| APR means Annual percentage rate, the nominal rate on which interest is calculated per year. APY means Annual percentage yield and represents the effect of compounding. |
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Term
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Definition
| Money includes checks, ledger transfers and even credit. |
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Term
| What are the 2 ways the Feds can influence the money supply and the flow of deposits? |
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Definition
| 1) The Feds can put more money in the economy by buying securities or creating new money. This new money is called raw money. 2) The Feds can effectively take money out of the economy if they feel it needs to slow the economy. They do this by selling treasury securities. The money they earn from the sell of these securities does not go into a bank account, it effectively disappears. |
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Term
| What are fee schedules? What are check hold policies? |
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Definition
Shows the charges that apply to each specific type of deposit account.
Explains when deposited funds will be available for use by the consumer. |
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Term
| What are disclosure statements? What are account policy statements? |
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Definition
| They provide full information about bank policies, such as electronic funds transfer policies, lending policies, interest crediting and compliance with banking.These deal with the bank statement sent by the bank. |
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