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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 |