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What is a market interest rate?
The market interest rate is the rate of interest on cash deposits or loan which is determined by the market. Factors such as demand and supply of cash in the market
To earn a higher interest rate what trade off will you likely have to make?
A money market account is an account that earns a higher rate of interest when you carry a larger balance, resulting from large deposits.
Why interest rate has no affect on the aggregate demand?
The interest rate does affect aggregate demand. As the interest rate falls, aggregate demand increases and vice-versa.
Why are demand deposits considered as money?
demand deposits can be withdrawn from the bank whenever it require. they are widely accepted as a means of payment, along with the currency. thus, it is considered as money
What is the relationship between demand for money and interest rates?
as interest rates increase, demand for money increases.
Do all deposits gain interest?
Not all deposits gain interest. Deposits to a savings account in a bank usually earn interest. Security deposits sometimes earn interest depending on where you reside. Deposits into investments will earn interest and the rate depends on the state of the economy and the financial markets.
What are noninterest-bearing deposits?
Noninterest-bearing deposits are funds held in a bank account that do not earn any interest for the depositor. These deposits typically include funds in checking accounts and some types of demand deposit accounts. Unlike interest-bearing deposits, noninterest-bearing deposits do not generate any additional income for the depositor.
Do Colorado security deposits have to earn interest?
yes, but it depends.
How much is the interest in Dollar Time deposit?
Usually Time deposits earn an interest of around 2-4% per annum
What is a market interest rate?
The market interest rate is the rate of interest on cash deposits or loan which is determined by the market. Factors such as demand and supply of cash in the market
Banks earn a profit on the difference between?
Banks earn a profit on the difference between the interest they earn through the loans disbursed to customers and the interest they pay to their deposit customers. For Ex: If a bank earns a 10% interest on loans and gives a 7% interest on deposits, the profit they are earning here is 3%
Are demand deposits and checkable deposits the same?
no
Are most deposits fixed rate or variable rate?
Deposits offer only a fixed rate of interest. Though this rate of interest gets changed once in a while, a deposit which was opened before this interest rate change does not get altered. It will continue to earn the same rate of interest as was promised when the deposit was opened.
Who are demand deposits a liability for?
demand liabilities is deposited for
To earn a higher interest rate what trade off will you likely have to make?
A money market account is an account that earns a higher rate of interest when you carry a larger balance, resulting from large deposits.
How does compound interest differ from simple interest?
With compound interest, you earn interest on the interest. Basically the interest payments are reinvested into the account whereas with simple interest, you only earn interest on the original balance. The interest payments are kept separate of the balance that you invested i.e.: with a bond, the interest payments don't go into a balance, you just get a check for them or rather your broker receives the check on your behalf and deposits it into your money market account which is separate from the bond that you purchased.
What is demand and time Liability?
'Demand Liabilities' include all liabilities which are payable on demand and they include current deposits, demand liabilities portion of savings bank deposits, margins held against letters of credit/guarantees, balances in overdue fixed deposits, cash certificates and cumulative/recurring deposits, outstanding Telegraphic Transfers (TTs), Mail Transfer (MTs), Demand Drafts (DDs), unclaimed deposits, credit balances in the Cash Credit account and deposits held as security for advances which are payable on demand. Money at Call and Short Notice from outside the Banking System should be shown against liability to others.Time Liabilities are those which are payable otherwise than on demand and they include fixed deposits, cash certificates, cumulative and recurring deposits, time liabilities portion of savings bank deposits, staff security deposits, margin held against letters of credit if not payable on demand, deposits held as securities for advances which are not payable on demand and Gold Deposits.
