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5.02

Vocab

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 transactions.
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.
Saving Tools Accounts offered by depository institutions whose main purpose is to help people manage their money.
Tiered Interest Rate The amount of interest earned depends on the account balance.
Created by: MarkEfird
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