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Compound interest A. Funds held in this type of account (also called a checking account) must be honored, or paid, by the depository institution immediately
Compound interest | A. | Funds held in this type of account (also called a checking account) must be honored, or paid, by the depository institution immediately upon demand by the account holder. | |
Demand deposit | B. | This is a deposit held in a financial institution for which funds are deposited for periods longer than demand deposits. | |
Overdraft | C. | This is the technical name of the condition that results when an account holder bounces a check. | |
Account reconciliation | D. | This is the term applied to the normal, day-to-day administration of an individuals or familys cash and near-cash, or liquid assets. | |
Cash management | E. | This is the process of verifying accuracy by comparing the balance on the check register, or ledger with the balance on the banks statements. | |
Deposit insurance | F. | This is the name given to interest that is paid only on an investors initial investment and not on any previously earned interest. | |
Cashiers check | G. | This is the name applied to interest earned on the sum of the initial deposit and interest earned in prior periods. | |
Time deposit | H. | These financial institutions accept checking and savings deposits from individuals and business, and include commercial banks, savings banks, and credit unions. | |
Simple interest | I. | This form of check also often called a bankers check payable to a third party is drawn by the banks own funds in exchange for the amount specified in the check, plus, in most cases, a service fee. | |
Depository institution | J. | In this program, the insuring agency guarantees the safety of the account holders total deposits up to specified amount. |
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