Chequing Accounts Are Sometimes Called Savings Accounts

question 43

True/False

Chequing accounts are sometimes called savings accounts.

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Definitions:

Real Rate

This is the interest rate adjusted for inflation, representing the real cost of borrowing and the real yield to lenders or investors.

Interest

The cost of borrowing money, typically expressed as an annual percentage rate, or the return on investment for savings.

Inflation

The frequency at which the overall cost of goods and services elevates, depreciating the purchasing power.

Cost-Of-Living Adjustment

An increase in income or benefits to compensate for a rise in the prices of goods and services, maintaining the purchasing power.