Exam 12: Managing and Pricing Deposit Services

The volume of core deposits at U.S.banks has been growing in recent years relative to other categories of deposits.

The implicit interest rate on checkable deposits equals the difference between the cost of supplying deposit services to a customer and the amount of the service charge actually assessed to that customer.

Research suggests that a depository institution's location is most important to _____ -income consumers.

Offering institutions post lower yields on SNOWs than on MMDAs because:

Negotiable Order of Withdrawal (NOW)accounts-interest-bearing savings accounts that can be used essentially the same as checking accounts-were authorized by:

Some people feel that all individuals are entitled to some minimum level of financial services,no matter what their income level is.This issue is often called:

A(n)_________________________ is a short-maturity deposit which pays a competitive interest rate.Only six preauthorized drafts per month are allowed but only three withdrawals can be made by writing checks.

If you deposit $1,000 into a certificate of deposit that quotes you a 5.5% APY,how much will you have at the end of 1 year?

On October 28,2004,________________ became law,permitting depository institutions to electronically transfer check images instead of the checks themselves.