The Clearing House Automated Payment System Is Also Known as

question 31

Multiple Choice

The Clearing House Automated Payment System is also known as

• A) FedWire.
• B) CHIPS.
• C) CHAPS.
• D) EFT.

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Definitions:

Compounded Monthly

A method of calculating interest in which the interest is added to the principal amount on a monthly basis and each subsequent interest calculation is made on the increased principal.

Compounded Quarterly

A method where interest is added to an investment or loan balance three months, leading to an increase in the total amount over time due to the effect of compound interest.

Promissory Note

A legal document in which one party promises to pay a specified sum of money to another party under agreed-upon terms.

Discounted

The reduction of the nominal price of goods, services, or financial instruments.