Term
| What are two category account? |
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Definition
| Transcation accounts and time deposits |
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Term
| What is an example of a demand deposit? |
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Definition
| A transaction account that allows transactions to occur at any time in any number |
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Term
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Definition
| By writing a check a depositer can withdraw money by giving written notice to the bank to pay a named person a specified amount |
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Term
| What is a basic checking account? |
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Definition
An account that offers a few simple services at minimum cost
Some are free
Some may be free if you maintain a minimum balance
Many have a basic fee and price extra service 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. |
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Term
| Why is it important for consumers to look closely at fees charged and services offered for their checking account? |
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Definition
| Its possible that a basic account might cost more money to operate than another type of account if there are many transactions raising the fees. |
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Term
| What other transactions are labeled as demand deposit transactions? |
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Definition
| Travelers checks, ATS(auto transfer service) because these are considered to be checkable depsoits because the funds are deposited in the checking accounts. |
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Term
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Definition
| Checks, ledger transfers, 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 then the money supply contracts because banks must keep more money in the banks. If reserve requirements are low then the money supply expands because the banks are free to loan out more money. |
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Term
| What are limitations to reserve requirements? |
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Definition
Reserve requirements dont change that often and is not a big factor in bank lending as general economi conditions.
Reserve requirements only apply to the M1 money supply
The Feds does not control other forms of commerce |
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Term
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Definition
| The rate the Fed charges the banks for loans. |
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Term
| What are banks required by states and federal government to provide? |
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Definition
| Documentation to customers so that questions about policies and procedures related to their accounts. |
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Term
| What are banks required by states and federal government to provide? |
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Definition
| Documentation to customers so that questions about policies and procedures related to their accounts. |
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Term
| What are banks required by states and federal government to provide? |
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Definition
| Documentation to customers so that questions about policies and procedures related to their accounts. |
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Term
| What are banks required by states and federal government to provide? |
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Definition
| Documentation to customers so that questions about policies and procedures related to their accounts. |
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Term
| What are banks required by states and federal government to provide? |
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Definition
| Documentation to customers so that questions about policies and procedures related to their accounts. |
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Term
| Reference to Governing Documents |
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Definition
| Account holders agrees to abide by the rules as set forth in the rest of the governing document. |
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Term
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Definition
| Banks keep a signature card on file with the signature of all parties to an account, whether it is held soley or jointly with other signatures |
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Term
| Opening and Closing Accounts |
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Definition
| Policies governing opening requirement may include a specified minimum opening deposit, the presence of the person opening the account with proper identification, and the right not to open an account for a person if the bank so chooses. |
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Term
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Definition
| This provison is similar to the check hold policy of the government documents , except that it goes further in explaining the effect of uncollected deposits on the account. |
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Term
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Definition
| This provison is similar to the check hold policy of the government documents , except that it goes further in explaining the effect of uncollected deposits on the account. |
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Term
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Definition
| This provison is similar to the check hold policy of the government documents , except that it goes further in explaining the effect of uncollected deposits on the account. |
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