Term
| What is 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
| What is 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
| What are Passbook Savings Accounts? |
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Definition
| PS accounts provided a ledger of activity that the teller updated when the customer made deposits or withdrawals. |
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Term
| What are Money Market Deposit Accounts (MMDAs)? |
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Definition
| MMDAs offer 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 Statement Savings Accounts? |
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Definition
| Provide a monthly or quarterly computerized statement detailing all account activity, including interest additions and fees charged. |
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Term
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Definition
Interest is the price paid for the use of money.
Interest is almost always expressed as a rate or percentage of the total amount of money in use, and it is calculated over time. |
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Term
| When can interest be paid? |
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Definition
1.Annually- paid once a year
2.Semi-Annually- every six months
3.Quarterly- every three months
Any other interval as defined in the account regulations. |
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Term
| What is compound interest? |
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Definition
| Compound Interest - is adding interest to the principal and paying interest on the new total, and it is the most powerful tool in savings. |
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Term
| When does compound interest start over w/ a new principal? |
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Definition
| Compound interest starts over with a new principal every time interest is paid. |
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Term
| What is Annual Percentage Rate (APR)? |
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Definition
| The nominal rate on which interest is calculated per year. |
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Term
| What is Annual Percentage Yield (APY)? |
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Definition
APY represents the effect of compounding.
In example APY of the simple interest is 5%, and of the compound interest, 5.3 %. |
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Term
| What accounts are the safest to place money? |
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Definition
| Savings Accounts are among the safest places to put money. |
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Term
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Definition
| Money includes checks, ledger transfers, and even credit. |
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Term
| How do reserve requirements impact the flow of money? |
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Definition
If reserve requirements are high the supply contract because there isn’t effect money to go out.
Is reserve requirements are low because they can give out more money. |
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Term
| What are the 2 ways that the fed can influence the flow of deposits? |
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Definition
The fed can put more into the economy by buying securities or by creating new money. This new money is called raw money.
The can fed can take out money if they feel it needs to slow the economy by selling treasures securities. The money they earn does not go in the bank account is just disappears. |
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Term
| How does the federal reserve influence the flow of deposits? |
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Definition
By buying and selling securities
Create and take away money
Discount rate |
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Term
| What are Deposit rate schedules? |
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Definition
| Lists interest rates in effect at the time for various types of accounts. |
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Term
| What is governing documents? |
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Definition
| Deposit account documents are sometimes collectible. |
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Term
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Definition
| Shows the charges that apply to each specific type of deposit account. |
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Term
| What are account policy statements? |
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Definition
| These deal with the bank statement sent by the bank. |
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