BUSN 108 Chapter Notes -Savings Account, Commercial Bank, United States Treasury Security
Document Summary
Chapter 4 - savings plan and payment accounts. Savings provides safe storage of funds for future use. Commonly referred to as time deposits, money in savings accounts and certificates of deposit are examples of savings plans. Payment services allow you to transfer money to pay expenses and for other business activities. Checking accounts and other payment methods are generally called demand deposits. Borrowing is used by most people at some time during their lives. Credit alternatives range from short-term accounts, such as credit cards and cash loans, to long-term borrowing, such as a home mortgage. A trust is a legal agreement that provides for the management and control of assets by one party for the benefit of another. This type of arrangement is usually created through a commercial bank or a lawyer. Parents who want to set aside certain funds for their children"s education may use a trust. *bank account coverage: the fdic only protects ,000 for each bank account.
