Because They Have Lower Overhead,web-Based Financial Institutions Tend to Pay

question 67

True/False

Because they have lower overhead,web-based financial institutions tend to pay higher interest rates on deposits than institutions with physical branches.

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Definitions:

Mortgage

An agreement in which a bank or lender provides funds to a borrower at a certain interest rate, securing the loan by temporarily taking ownership of the borrower's property. This ownership is transferred back to the borrower once the loan is fully repaid.

Drawee

The party, typically a bank, on whom a check or draft is drawn and is responsible for paying the amount specified.

Checking Account

A bank account that allows for the deposit and withdrawal of funds, typically using checks, debit cards, and electronic transfers, intended for daily transactions.

Cashier's Check

A check issued by a bank or financial institution, guaranteed by the bank itself, used for making large payments where the payee requires assurance of payment.