Banking Basics Test |17 Questions| With Correct Answers.

Federal Reserve System {Ans: The central bank of the United States}Liquidity {Ans: the ease with which an asset can be converted into cash}Rule of 72 {Ans: A formula for computing how long it will take to double money invested at a given interest rate.}Checking account {Ans: Bank account that provides the greatest amount of liquidity}FDIC (Federal Deposit Insurance Corporation) {Ans: insures customer deposits, up to $250,000, in U.S. banks in the event of bank failure}Credit Unions {Ans: Are not backed by the FDIC (only by NCUA)}