10-31-2007, 07:02 PM
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Greenhorn
Join Date: Jul 2006
Posts: 13
Rep Power: 0  |
match the #s with letters?
1 Funds cannot be removed from this savings account until the end of a certain period of time <br />2 A type of loan used to buy real estate <br />3 The amount borrowed in a loan <br />4 The largest source of income for banks <br />5 Provide the most services and play the largest role in the economy of all types of lending institutions <br />6 Requires customers to use a PIN <br />7 Institutions that give installment loans to consumers <br />8 A feature of modern banking that allows you to transfer, deposit and withdraw money 24 hours a day<br />9 Type of bank which originally introduced NOW accounts <br />10 A banking system that only keeps a portion of the funds on hand and loans out the remainder <br /><br />A. Fractional Reserve Banking<br />B. Principal<br />C. Automated Teller Machine<br />D. Debit Card<br />E. Commercial Banks<br />F. Savings Banks<br />G. Federal Reserve System<br />H. Credit Cards<br />I. Default<br />J. Stored Value Cards<br />K. Mortgage<br />L. Money Market Mutual Funds<br />M. Finance Companies<br />N. Interest<br />O. Certificate of Deposit<br />I think 3 is B and 6 is D<br />
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10-31-2007, 07:02 PM
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#2 |
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Greenhorn
Join Date: Aug 2006
Age: 24
Posts: 10
Rep Power: 0 |
match the #s with letters?
I'm sure your textbook has all the answers. :)
However, I'll tell you this: your guesses are right so far...and I'll give you one of the harder ones. A is #10. Fractional reserve simply means that they keep (e.g. reserve) a percentage (fraction) of the money you deposit, then loan out the remainder. They make the assumption that customers won't ask for more than a small amount of their money at any one time, and earn money from the interest paid by loaning out the rest. In fact, that's why they pay you interest - as a fee for loaning out your money. :) Most banks today have moved away from a fractional reserve into a sort of floating reserve, though... |
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