Term
| What are some types of documents typically included? |
|
Definition
Account rules,
Deposit rate schedules,
Fee schedules,
Check hold policies |
|
|
Term
| What are two categories of accounts? |
|
Definition
| Transaction accounts and time deposits |
|
|
Term
| What is a transaction account? |
|
Definition
| allows transactions to occur at any time and in any number. These accounts are demand deposits. |
|
|
Term
| What is an example of a demand deposit? |
|
Definition
| an example of demand deposit, it is payable on demand when ever checking account |
|
|
Term
|
Definition
| a depositor can withdrawal money by giving written notice to the bank to pay a named person a specified amount from his or her account. |
|
|
Term
|
Definition
| a depositor can withdrawal money by giving written notice to the bank to pay a named person a specified amount from his or her account. |
|
|
Term
| What is a basic checking account? |
|
Definition
Some may be free if a minimum balance is maintained
An account that offers a fees simple services
Some are free
Some have basic fee and price extra services per item |
|
|
Term
| What is an interest bearing checking account? |
|
Definition
| A checking account that pays interest on the balance deposited balance maintained at or above a required level |
|
|
Term
| Why is it important for consumers to look closely at fees charged and serviced offered for their checking account? |
|
Definition
| It is possible that a basic account might cost more money to operate that other type of act if there are many transactions raising the fees |
|
|
Term
| What other transactions are categorized as demand deposit transactions? Why? |
|
Definition
| Travelers checks, ATS (Automatic transfer service). This is because there are considered to be checkable deposits because the funds are deposited as checking accounts |
|
|
Term
| How do you calculate interest? |
|
Definition
P*R*T=I
• T- Time
• Interest
• P- Principal
• R- Rate |
|
|
Term
|
Definition
| It is the price paid for the use of money. |
|
|
Term
| What is compound interest? |
|
Definition
| When you add interest to the principal and pay interest on new total. This is the most powerful tool in savings. |
|
|
Term
|
Definition
Annual Percentage Yeild
Annual Percentage Rate |
|
|
Term
| How do reserve requirements impact the flow of money? |
|
Definition
If reserve requirements are low the money supply expands because banks have more money to lead out.
If the reserve requirements are high the money supply contracts because banks must keep more money in the back |
|
|
Term
| What are some limitations of reserve requirements? |
|
Definition
Don’t change that often and are not as much a factor in bank lending as general economic conditions. BR
They only apply to the M1 money supply. Other parts of the money supply are operating entirely by means of market forces.BR
The fed does not control other forms of commerce |
|
|
Term
| What are the two ways the feds can influence the money supply and the flow of deposits. |
|
Definition
The fed reserve can put more money into the economy by buying securities or by creating new money this new money is called raw money. BR
The fed can effectively take money out of the economy if it feels it needs the slow the economy. They do this by selling treasuries securities. BR
The money they earn from the sales of these securities does not go into a bank account, it effectively disappears |
|
|
Term
|
Definition
| The rate the fed charges the bank for loans |
|
|
Term
|
Definition
| explain characteristics of each type of account. |
|
|
Term
|
Definition
| list interest rates in effect at the time for various types of accounts. |
|
|
Term
|
Definition
| show all charger that apply to each specific type of deposit account |
|
|
Term
|
Definition
| explains when funds will be available for use by the consumer |
|
|
Term
| Reference to Governing Documents: |
|
Definition
| agree to abide by the rules as set forth in the rest of the governing documents. |
|
|
Term
|
Definition
| Signature card kept on file (all parties on the account) |
|
|
Term
| Opening and Closing accounts: |
|
Definition
| may include a specified minimum opening deposit, and the right not to open and account for a person if the bank chooses. |
|
|
Term
|
Definition
| Not the job of the bank to collect deposits beyond using reasonable care in their processing. |
|
|
Term
|
Definition
| When an account has insufficient funds to meet its obligations, it is overdrawn. |
|
|
Term
| • Minimum Balance/service charges: |
|
Definition
| specifies exactly the terms of when failure to maintain minimum balance charges apply. |
|
|
Term
|
Definition
| requirements for withdrawing funds from the bank are explained here |
|
|
Term
|
Definition
| When an account has insufficient funds to meet its obligations, it is overdrawn. |
|
|
Term
| Minimum Balance/service charges: |
|
Definition
| specifies exactly the terms of when failure to maintain minimum balance charges apply. |
|
|
Term
|
Definition
| requirements for accurate dating of checks and timely deposit or presentation of the |
|
|
Term
| Account Statement Policies: |
|
Definition
| policies that the bank statement sent by the bank |
|
|
Term
|
Definition
| account rules usually include various other policies including stop-payment. |
|
|
Term
|
Definition
| contain notices about various waivers, such a the customer agreeing to waiver protest of dishonored items or the banks willingness to waiver certain fees. |
|
|
Term
|
Definition
Reference to Governing Documents:
Signature Policies:
Opening and Closing accounts:
Deposit Collection:
Overdraft Policies:
Other Policies:
Check Policies:
Account Statement Policies:
Minimum Balance/service charges: |
|
|
