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chapter17vo.
financial services
Question | Answer |
---|---|
a financial institution must accept demand deposits, make consumer and commercial loans, and buy and sell currency and government securities | bank |
a loan made to a business | commercial loan |
loan made to an individual for personal use | consumer loan |
offers financial products and services other than deposits and loans | nonbank |
a written order requiring the financial institution to pay previously deposited money to a third party on demand | check |
the payee's signature on the back of the check | endorsement |
loan that is not backed by collateral | unsecured loan |
a loan backed by something of value owned by the borrower | secured loan |
the rate at which large banks lend large sums to the best-qualified borrowers | prime rate |
time deposit account that allows customers to make deposits, earn interest, and make withdrawals at any time without financial penalties | savings account |
a time deposit that requires a specified minimum deposit for a fixed period at a fixed interest rate | certificate of deposit (CD) |
transferring money by computer rather than by check, has enables financial institutions to provide faster, improved services | electronic funds transfer (EFT) |
the electronic transfer of a paycheck directly from the employers bank account into the employees bank account | direct deposit |