Depository Institutions
This type of bank is the most common and offers a wide array of banking products
What is Commercial Banks?
You should pay yourself first before other expenses into this account
What is a savings account?
giving up one thing for another
What is trade-off?
the cost of credit expressed as a yearly interest rate
what is an APR?
The items monetary value a person owns
what are assets?
Does not offer personal customer service
What is an internet bank?
This is a good account to use for your Emergency fund
What is a Savings Account?
an APR that may change depending on other factors
value of a next best alternative when forgoing the best
What is opportunity cost?
When opening a HYSA, look for these criteria
What are fees, FDIC insured, APY and min or max deposit
This type of bank serves for large businesses
What is a corporate bank?
open this type of account if you have a specific savings goal in the future
What is a certificate of deposit?
money today is worth more than money tomorrow
what is the time value of money?
the cost of using someone else's money
what is interest?
Banks cannot invest your money when it's in this account
What is HYSA?
only found in certain area
What is a community bank?
you have a large cash balance and want to earn interest while maintaining easy access to your money through checks, transfers and ATM withdrawals.
What is a Money market account?
a group or individual directly affected by an organization
What is stakeholders?
the initial amount invested or paid
What is Principal amount?
Banks can invest your money when held in this account
What is a money market account?
What is a credit union?
Felipe is getting married in a year and a half and wants to have some money in an interest bearing account to save for the honeymoon. He may need to pay deposits for lodging and by planes tickets before the wedding. Give two types of accounts he might consider.
What is HYSA or MMA?
the formula for calculating APY
What is
(1+ r/n)^n -1
give the APY on an initial deposit of 600 at a rate of 5.5%, compounded quarterly.
What is 5.61% ?
this organization insures credit unions
What is NCUA (National Credit Union Administration?