| A | B |
|---|
| transaction account | an account that allows transactions to occur without restrictions on the frequency or the volume of transactions |
| demand deposit | payable on demand whenever the depositor chooses |
| individual account | owned by one person |
| joint account | 2 or more owners |
| Check 21 | created a new category of negotiable instrument |
| time deposits | deposits that are held for or mature at a specified time |
| passbook savings accounts | provided a ledger of activity that the teller updated when the customer makes deposits or withdrawals |
| statement savings accounts | provide a monthly or quarterly computerized statement detailing all account activity |
| Money Market deposit accounts | offer a higher rate of interest than savings accounts, but they usually require a higher initial deposit to open an account |
| Certificates of deposit | certificates issued by banks that guarantee the payment of a fixed interest rate until the maturity date |
| maturity | which is a specified date in the future |
| callable cd | one that can be called in at the discretion of the issuing institution |
| interest | price paid for the use of money |
| compound interest | adding interest to the principal and paying interest on the new total is called "" |
| Annual Percentage rate | nominal rate on which interest |
| annual percentage yield | represents the effect of compounding |
| interbank transactions | the transactions that occur when banks make or recieve deposits from eachother or from the Fed are called"" |
