3-4 Savings Accounts Flashcard Business U

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What is a Certificate of Deposit (CD)?

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A fixed-amount and fixed-term financial product offered by banks.

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What does the Discount Rate refer to?

Back

The interest rate at which eligible depository institutions can borrow short-term funds from the Federal Reserve Bank.

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What is the Federal Funds Rate?

Back

The interest rate at which banks lend reserves to each other overnight.

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What does Inflation refer to?

Back

The increase in the general level of prices in an economy

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What is Interest in financial terms?

Back

The cost (or income) of borrowing (from loaning) money

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What is a Money Market Account (MMA)?

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A deposit account with higher interest rates than traditional savings accounts.

Front

What is a Savings Account?

Back

An interest-bearing deposit account with limitations on monthly withdrawals.