ECN 305 Chapter 4

the way that we administer our liquid assets

• deposit insurance

• cash management

• share draft accomodations

• time deposits

money market deposit accounts (MMDAs) are

• checking accounts that pay interest

• mutual funds that pool the resources of small investors

• accounts offered by credit unions similar to interest-paying checking accounts

• federally insured savings account that compete with mutual funds

Systems that electronically transfer funds into and out of customers' accounts.

• asset management

• debit card

• automated teller machines

• electronic funds transfer systems

Demand deposit

• is the same as a mutual fund

• is the same as a savings account

• is the same as a checking account

• is the same as deposit insurance

You want this protection if you write a check for more money than you have in your account.

• checkbook protection

• ATM protection

• electronic funds transfer protection

• overdraft protection

This check is drawn by any bank on itself in exchange for the amount plus a fee

• traveler's check

• cashier's check

• certified check

• none of these

This check is good to take on vacation because it can be exchanged for local currencies and goods in most parts of the world.

• traveler's check

• cashier's check

• certified check

• none of these

This check is a personal check that is guaranteed by the bank on which it is drawn

• traveler's check

• cashier's check

• certified check

• none of these

This type of interest is paid only on the initial amount of the deposit

• compound interest

• simple interest

• nominal rate of interest

• effective rate of interest

the rate of return that is actually earned during the period the funds are held/borrowed

• compound interest

• simple interest

• nominal rate of interest

• effective rate of interest