| A | B |
|---|
| state or federal | In order to operate, a bank must receive a charter from EITHER of these government levels |
| checking account | an example of a demand deposit |
| Interest | Although illegal for many years, banks can now pay THIS on checking accounts |
| Money Market Fund | a type of savings account where the money is invested but you can write limited checks on it and withdraw funds at any time without penalty |
| mutual fund | pools the money of many investors primarily for the purchase of stocks and bonds |
| Demand deposit accounts | THESE permit depositors to make withdrawals at any time without penalty |
| Commercial banks | financial institution offers the widest variety of services |
| credit union | A financial institution that offers loans and deposit services to members only |
| securities | a finance company is a type of nonbank obtains funds by issuing THESE |
| EFTs | THESE can do direct deposits, ATM withdrawals, and debit-card payments |
| ATM's | a computer terminal that allows consumers to deposit, withdraw, and transfer funds |
| CD's | can be purchased for periods ranging from three months to five years. Withdrawing money early will likely result in a financial penalty, and interest on a on year will be bigger than on a 3 month |
| diversify | A good rule to follow when investing is to do THIS |
| Taxes | Interest earned on U.S. savings bonds is exempt from state and local income _______ |
| BILL, NOTE, BOND | Treasury instruments, ranked from lowest to highest interest rate |
| secured loan | loan backed by something of value owned by the borrower |
| financial institution | An organization that collects money from clients and uses it for investments to benefit both the client and the organization |
| nonbank | Financial institution whose primary purpose is to offer financial products and services other than deposits and loans |
| demand deposit | Money put into a financial institution by depositors which can be withdrawn at any time without penalty |
| savings bond | Non-negotiable securities sold by the U.S. Treasury |
| collateral | Property a borrower pledges to assure repayment of a loan |
| Treasury instruments | Securities issued by the U.S. government |
| liquidity | The ease of turning an investment into cash without significant loss |
| investment | The use of money to make more money |
| electronic funds transfer | Transferring money by computer. |
