
To evaluate: The comparison between basic savings account and a time deposit.

Explanation of Solution
A bank or financial institution holding an interest-bearing deposit account is called a savings account. Although these accounts usually pay a moderate interest rate, their protection and flexibility make them a good choice for saving cash that we all want to have accessible for short-term needs. Savings accounts have some restrictions on how much money we can borrow but generally have great flexibility to build an emergency fund.
A time deposit is a bank account that bears interest and has a pre-set maturity date. A perfect example of this is a certificate of deposit. To get the negotiated interest rate the money has to remain in the account for the specified period. Time deposits typically pay an interest rate much higher than a normal savings account. The longer the maturity period, the greater would be the interest rate. One can buy a time deposit like a CD from virtually any credit union, bank, or other finance firm. The interest rates paid would differ amongst other variables.
Introduction: Banking can be described as the business practice of taking and safeguarding money owned by other individuals and institutions, and then loaning it out to earn a profit. Nevertheless, the activities covered by the sector of the banking have expanded with the passage of time, and banks are now also providing numerous other services.
Chapter 6 Solutions
Economics Today and Tomorrow, Student Edition
Additional Business Textbook Solutions
Engineering Economy (17th Edition)
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Business Essentials (12th Edition) (What's New in Intro to Business)
Financial Accounting: Tools for Business Decision Making, 8th Edition
Horngren's Accounting (12th Edition)
Principles Of Taxation For Business And Investment Planning 2020 Edition
- Consider the following statements: a. Fewer people are employed in Freedonia now than at any time in the past 75 years. b. The unemployment rate in Freedonia is lower now than it has been in 75 years.Can both of these statements be true at the same time? A. Yes, these statements can be correct if more people are classified as "discouraged workers."B. No, these statements cannot be true since unemployment must increase as employment decreases.C. Yes, if the number of unemployed decreases more than the number of employed.D. Yes, both of these statements can be correct if labor productivity increases.arrow_forwardAsap please and quality answerarrow_forwardEverything is in the attached picture. 13arrow_forward
- Everything is in the attached picture. 22arrow_forwardEverything is in attached picture. 23arrow_forward1) Use the supply and demand schedules to graph the supply and demand functions. Find and show on the graph the equilibrium price and quantity, label it (A). P Q demanded P Q supplied 0 75 0 0 5 65 5 0 10 55 10 0 15 45 15 10 20 35 20 20 25 25 25 30 30 15 30 40 35 40 5 0 35 40 50 60 2) Find graphically and numerically the consumers and producers' surplus 3) The government introduced a tax of 10$, Label the price buyers pay and suppliers receive. Label the new equilibrium for buyers (B) and Sellers (S). How the surpluses have changed? Give the numerical answer and show on the graph. 4) Calculate using midpoint method the elasticity of demand curve from point (A) to (B) and elasticity of the supply curve from point (A) to (C).arrow_forward
- Four heirs (A, B, C, and D) must divide fairly an estate consisting of three items — a house, a cabin and a boat — using the method of sealed bids. The players' bids (in dollars) are: In the initial allocation, player D Group of answer choices gets no items and gets $62,500 from the estate. gets the house and pays the estate $122,500. gets the cabin and gets $7,500 from the estate. gets the boat and and gets $55,500 from the estate. none of thesearrow_forwardJack and Jill are getting a divorce. Except for the house, they own very little of value so they agree to divide the house fairly using the method of sealed bids. Jack bids 140,000 and Jill bids 160,000. After all is said and done, the final outcome is Group of answer choices Jill gets the house and pays Jack $80,000. Jill gets the house and pays Jack $75,000. Jill gets the house and pays Jack $70,000. Jill gets the house and pays Jack $65,000. none of thesearrow_forwardThe problem statement never defines whether the loan had compound or simple interest. The readings indicate that the diference in those will be learned later, and the formula used fro this answer was not in the chapter. Should it be assumbed that a simple interest caluclaton should be used?arrow_forward
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education





