The volume of core deposits at U.S. banks has been growing in recent years relative to other categories of deposits.

The U.S. Treasury keeps most of its operating funds in TT&L deposits, according to the textbook.

Deposits owned by commercial banks and held with other banks are called correspondent deposits.

The implicit interest rate on checkable deposits equals the difference between the cost of supplying deposit services to a customer and the amount of the service charge actually assessed that customer.

Legally imposed interest-rate ceilings on deposits were first set in place in the United States after passage of the Bank Holding Company Act.

Gradual phase-out of legal interest-rate ceilings on deposits offered by U.S. banks was first authorized by the Glass-Steagall Act.

The contention that there are certain banking services (such as small loans or savings and checking accounts) that every citizen should have access to is usually called socialized banking.

Domestic deposits generate legal reserves.

Excess legal reserves are the source out of which new bank loans are created.

Demand deposits are among the most volatile and least predictable of a bank's sources of funds with the shortest potential maturity..

IRA and Keogh deposits have great appeal for bankers principally because they can be sold bearing relatively low (often below-market) interest rates.

In general, the longer the maturity of a deposit, the lower the yield a financial institution must offer to its depositors because of the greater interest-rate risk the bank faces with longer-term deposits.

The availability of a large block of core deposits decreases the duration of a bank's liabilities.

Interest-bearing checking accounts, on average, tend to generate lower net returns than regular (noninterest-bearing) checking accounts.

Personal checking accounts tend to be more profitable than commercial checking accounts.

NOW accouts can be held by businesses and individuals and are interest bearing checking accounts.

A MMDA is a short term deposit where the bank can offer a competitive interest rate and which allows up to 6 preauthorized drafts per month.

A Roth IRA allows an individual to accumulate investment earnings tax free and also pay no tax on their investment earnings when withdrawn provided the taxpayer follows the rules on this new account.

Competition tends to raise deposit interest costs.

Competition lowers the expected return to a bank from putting its deposits to work

A bank has full control of its deposit prices in the long run.

Nonprice competition for deposits has tended to distort the allocation of scarce resources in the banking sector.

Deposits are usually priced separately from loans and other bank services.

According to recent Federal Reserve data no-fee savings accounts are on the decline.

According to recent survey information provided by the staff of the Federal Reserve Board the average level of fees on most types of checking and NOW accounts appear to have risen.

The Truth in Savings Act requires a bank to disclose to its deposit customer the frequency with which interest is compounded on all interest-bearing accounts.

Under the Truth in Savings Act customers must be informed of the impact of any early deposit withdrawals on the annual percentage yield they expect to receive from an interest-bearing deposit.

The number one factor households consider in selecting a bank to hold their checking account is, according to recent studies cited in this chapter, low fees and low minimum balance.

The number one factor households consider in choosing a bank to hold their savings deposits, according to recent studies cited in this chapter, is location.

Conditionally free deposits for customers mean that as long as the customers do not go above a certain level of deposits there are no monthly fees or per transaction charges.

When a bank temporarily offers higher than average interest rates or lower than average customer fees in order to attract new business they are practicing conditional pricing.

Web-centered banks with little or no physical facilities are known as ________ banks

The total dollar value of checks paid in the United States has grown modestly in recent years.

There are still a number of existing problems with online bill-paying services which has

      limited the growth.

The depository institutions which tend to have the highest deposit yields are credit unions.

Urban markets are more responsive to deposit interest rates and fees than rural markets.

Research indicates that at least half of all households and small businesses hold their primary checking account at a depository institution situated within 3 miles of their location.

Interest payments on regular checking accounts were prohibited in the United States under terms of the:

Money-market deposit accounts (MMDAs), offering flexible interest rates, accessible for payments purposes, and designed to compete with share accounts offered by money market mutual funds, were authorized by the:

The stable and predictable base of deposited funds that are not highly sensitive to movements in market interest rates but tend to remain with the bank are called:

Noegotiable Orders of Withdrawal (NOW) accounts, interest-bearing savings accounts that can  be used essentially the same as checking accounts, were authorized by:

A deposit which offers flexible money market interest rates but is accessible for spending by writing a limited number of checks or executing preauthorized drafts is known as a:

The types of deposits that will be created by the banking system depend predominantly upon:

The most profitable deposit for a bank is a:

Some people feel that individuals are entitled to some minimum level of financial services no matter what their income level.  This issue is often called:

The formula Operating Expense per unit of deposit service + Estimated overhead expense + Planned profit from each deposit service unit sold reflects what deposit pricing method listed below

Using deposit fee schedules that vary deposit prices according to the number of transactions, the average balance in the deposit account, and the maturity of the deposit represents what deposit pricing method listed below?

The deposit pricing method that favors large-denomination deposits because services are free if the deposit account balance stays above some minimum figure is called:

The deposit pricing method that favors large-denomination deposits because services are free if the deposit account balance stays above some minimum figure is called:

The federal law that requires U.S. depository institutions to make greater disclosure of the fees, interest rates, and other terms attached to the deposits they sell to the public is called the:

Depository institutions selling deposits to the public in the United States must quote the rate of return pledged to the owner of the deposit which reflects the customer's average daily balance kept in the deposit. This quoted rate of return is known as the:

According to recent studies cited in this book, in selecting a bank to hold their checking accounts household customers rank first which of the following factors?

According to recent studies cited in this chapter, in choosing a bank to hold their savings deposits household customers rank first which of the following factors?

Business (commercial) transaction accounts are generally more profitable than personal checking accounts, according to the textbook.  Which of the following explain the reasons for this statement:

Which of these Acts is attempting to address the low savings rate of workers in the U.S. by including an automatic enrollment (“default option”) in employees’ retirement accounts

Under the Truth in Savings Act, a bank must inform its customers of the terms being quoted on their deposits.  Which of the following is not one of the terms listed

Prior to Depository Institution Deregulation and Control Act (DIDMCA), banks used              . This tended to distort the allocation of scarce resources.

The deposit pricing method that focuses on the added cost of bringing in new funds is called:

The deposit pricing method that charges a fixed charge per check or per period or both is called:

The deposit pricing method absent of any monthly account maintenance fee or per-transaction fee is called:

The dominant holder of bank deposits in the U.S. is

What has made IRA and Keogh accounts more attractive to depositors recently

A time deposit that allows the depositor to withdraw some of his or her funds without a withdrawal penalty is called a:

A time deposit that allows for a periodic upward adjustment to the promised rate is called a:

  An account at a bank that carries a fixed maturity date with a fixed interest rate and which often carries a penalty for early withdrawal of money is called:

A traditional savings account where evidenced by the entries recorded in a booklet kept by the customer is called:

A savings account evidenced only by computer entry for which the customer gets a monthly printout is called:

Customers who wish to set aside money in anticipation of future expenditures or financial emergencies put their money in

Conditional deposit pricing may involve all of the following factors except:

A financial institution that charges customers based on the number of services they use and gives lower deposit fees or waives some fees for a customer that purchases two or more services is practicing:

According to recent studies cited in this chapter, in choosing a bank to supply their deposits and other services business firms rank first which of the following factors?