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PF 5.02
| Term | Definition |
|---|---|
| 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 | Business that provide financial services |
| Liquidity | How quickly and easily an asset can be converted into cash |
| Money market account | An 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 |
| Savings 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 |