Institutions Have a Rule Requiring That Savings Account Holders Give

question 129

True/False

Institutions have a rule requiring that savings account holders give 30 to 60 days' notice for withdrawals.

---

Definitions:

Interest Rate

The financial cost, expressed as a percent of the principal, that borrowers incur from lenders to use assets.

Present Value

The existing value today of a sum of money to be received in the future or continuous cash inflows, calculated at a certain rate of return.

Loanable Funds

The money available for borrowing, which includes savings that are available for investment and loans.

Random Walk

A theory suggesting that stock market prices follow a random path, making it impossible to predict future price directions based on past information.