2. Bank deposits and other liabilities Use the following categorization table to identify transaction and nontransaction accounts. Savings, or Passbook Accounts Money Market Deposit Accounts NOW Accounts Certificates of Deposit, CD Demand Deposits Transaction Account Nontransaction Account Why and when were NOW accounts created? n In the 1970s as a way to get around restrictive banking regulations In the early 2000s so that households could tap into the rising value of their houses In the 1980s as a way for bank customers to invest in the stock market O During World War II to deal with wartime shortages
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- A ____ is an interest-bearing checking account. Group of answer choices NOW account certificate of deposit Treasury bill regular checking account Series EE US savings bond1. Rank the following types of bank liabilities, first according to their level of liquidity risk, and then according to their interest rate risk. Then rank them according to their current cost to the bank. Explain why the rankings vary. DDAs Interest-checking accounts MMDAs Small-time deposits Jumbo CDs Federal funds purchased Eurodollar liabilities Federal Home Loan Bank advancesMatch up the following statements and answers. An answer may be used more than once. Whose liabilities are bank notes held by the general public? Choose... Whose assets are reserves with the central bank? Choose... For households a home mortgage is a Choose... for commercial banks a home mortgage is a Choose... for commercial banks a deposit held by the general public Choose... is a for a corporation a bank loan is a Choose... an example of a household's tangible assets is a Choose... if I borrow money using my house as collateral this is a v Choose... mortgage, an asset of a commercial bank the central bank liability house asset mortgage, a liability of a commercial bank commercial banks
- Which of the following is NOT Non-Authorized Deposit-Taking Institution? O a. Credit Unions O b. Finance Companies Oc. O d. Securitizers Money Market Corporations What is open banking? Time left 0:33 O a. Open Banking refers primarily to giving customers greater access to and control over their own banking data O b. Open Banking enables the customer to direct that they can be provided with parts of their banking data in a secure environment and in a prescribed way O c. Open Banking enables the customer to direct that they, or third parties chosen by them, be provided with pre determined parts of their banking data in a secure environment and in a prescribed way Od. A and B Oe. A and C I bought stock Y last year and make 10% of profit. This year I bought stock Y again. Even though I am making a loss but I will wait and see as my experience with this stock is positive. What kind of bias is this? O a. Anchoring bias O b. Availability bias O.C. Confirmation bias Od. Loss aversion biasAn account issued by banks yielding a market rate of interest with a minimum balance requirement and a limit on transactions is a Select one: a. certificate of deposit. b. money market deposit account.1. What are the different types of deposit accounts and loans offered to customers by any one commercial Bank? How will it benefit the account holders and borrowers?
- Depositing money into a commercial bank is investing in a a.secondary market. b.subprime market. c.predatory lending market. d.primary market.The following are examples of old services provided by banks except: O Carrying out currency exchanges. Safekeeping of valuables. Making consumer loans. Offering saving deposits.The interest rate that banks provide to the customers for the savings deposit account is more than current deposit account but less than: a. Overdraft account b. Savings deposit account c. Flexible account d. Fixed deposit account
- Even before you use a new credit card, what information is the institution that issued your card required by law to disclose? o The rate of interest and method used to compute finance charges o The rate of interest and estimated dollar amount of finance charges o The method used to compute finance charges and estimated dollar amount of finance charges The interest rate on cash advances is generally The most common method that banks and retail credit card issuers use to compute finance charges is the average daily balance (ADB) method. You expect to actively use your card. Which variation of the ADB method will be least expensive for you? O ADB excluding new purchases O ADB including new purchases It doesn't matter Consider the following case: On June 1, Crystal's credit card has a balance of $5,626.25. According to the terms of the card's lending agreement, an interest rate of 20% per year is assessed and the monthly finance charges are calculated using the Average Daily Balance (ADB)…Select the banking terms from drop down to match with the correct definition. Definitions Banking Terms a. A check that has been paid by the bank on behalf of the depositor. select a banking term Automated teller machine (ATM)Electronic funds transfer (EFT)MakerDepositorDebit memorandumPayeeBank statementPayerCredit memorandumDeposit slipCheckCanceled checkSignature cardEndorsement b. A disbursement system that uses wire, telephone, or computers to transfer cash balances from one location to another. select a banking term EndorsementBank statementDeposit slipDebit memorandumCheckDepositorElectronic funds transfer (EFT)PayeeSignature cardPayerCanceled checkCredit memorandumAutomated teller machine (ATM)Maker c. A document provided by the bank that requires the signature of all authorized signers of checks. select a banking term…What is the primary asset of any bank? Select an answer: checking and savings accounts investments accounts receivable real estate