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20 Cards in this Set
- Front
- Back
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Most banks offer essentially the same types of accounts
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True
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A transaction account allows transactions to occur at any time and in any number.
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True
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Basic checking accounts pay interest on the balance deposited in the account.
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False
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Banks ma require up to a seven-day notice form a depositer who wants to withdraw money from a time deposit.
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True
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You cannot get your money from a certificate of deposit before the maturity date.
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False
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Principal is the price paid for using money.
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False
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Compound interest uses the same principal amount every time it is calculated.
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False
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Money doesn't just mean currency, but also checks, ledger transfers, and even credit.
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True
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In the United states, the government plays the greatest role in determining how money is moving
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False
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Banks are free to change governing documents, but they must give customers written notice of changes.
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True
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The most common form of a transaction account is a
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checking account
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To which category of the money supply do transaction accounts belong?
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M1
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Which of the following is NOT a time deposit?
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checking account
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Which of the following accounts are you LEAST likely to encounter at a modern bank?
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passbook savings account
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Which of the following accounts is the MOST liquid?
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checking account
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Adding interest to the principal and paying interest on the new total is called paying
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compound interest
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For the purposes of computing interest compounded daily, a year is generally considered to be
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360 days
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Which of the following statements about reserve requirements is true?
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reserve requirements do not change very often
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Which of the following governing documents list interest rates in effect at the time for various types of accounts?
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deposit rate schedules
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A check that is dated six months or more before it is presented for payment or deposit is called a(n)
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stale check
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