A Comparison of a Interest Bearing Checking Account and a Savings

question 271

Multiple Choice

A comparison of a interest bearing checking account and a savings account reveals that:

• A)while a NOW account pays interest, a savings account does not.
• B)a NOW account must be held to maturity, while funds in a savings account are available on demand.
• C)deposits in checking accounts are technically demand deposits, but deposits in savings accounts are time deposits.
• D)interest earned on NOW accounts is tax deductible, while interest earned on passbook savings accounts is taxable income.

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Definitions:

Avoidant

Characterized by a pattern of social inhibition, feelings of inadequacy, and a hypersensitivity to negative evaluation.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Anxious Cluster

Refers to a group of personality disorders characterized by high levels of anxiety and fearfulness, including avoidant, dependent, and obsessive-compulsive personality disorders.

Eccentric

Characterized by or exhibiting unconventional and slightly strange behaviors or attitudes.