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5.02 Vocabulary

TermDefinition
Certificate of deposit An account at a depository institution that is used for a fixed period of time and allows restricted access to the funds deposited
Checking account An account that allows quick access to funds for transaction
Depository institution Businesses that provide financial services
Liquidity How quickly and easily an asset can be converted into cash
Money market deposit account A account at a depository institution that usually has minimum balance requirements and tiered interest rates
Savings account An account at a depository institution that is designed to hold money not spent on current consumption
Tiered interest rate The amount of interest earned depends on the account balance
Created by: brooke.burgess
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