Savings and Banking Comp.
What is the minimum balance for a money market account?
$1,000
How do banks make money?
Yielding out loans
Money in a checking account is called a demand deposit.
True
The process in which interest is earned on both the principal and any previously earned interest.
Compounding
The type of card in order to use ATM banking
Debit Card
How would one add money to their checking account?
Depositing a deposit ticket
A savings and loan is a financial institution that is owned by its members.
False
A savings account in which the interest rate varies as market rates change.
Money market account
What is a store-valued card?
Rechargeable money that can go on a card
What is the most common restriction for a checking account?
Keeping a minimum balance
Overdraft protection is an automatic loan made to an account if the balance will not cover the checks written.
True
A savings alternative in which money is left on deposit for a stated amount of time to earn a specific rate of return.
Certificate of deposit
The three main categories of financial services:
Savings, Payment Services, and Borrowing
Define check clearing
A system that ensures that the money was deposited is available for withdrawal.
Interest you earn on a certification of deposit is exempt from state and local taxes.
False
The signature of payee on the back of a check.
Endorsement
What is the most commonly used payment service?
Checking Account
If it's only you on the account, which type of account would you open?
Individual
You can write checks from a money-market account
False
A for-profit institution that offers a full range of financial services.
Commercial bank