ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Funding by farmers contributions
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Providing liquidity and a safety net for low-income years
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Requiring banks to use the same method of calculating interest
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Reducing financial risks by encouraging farmers and ranchers to diversify their assets
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Detailed explanation-1: -The Truth in Savings Act (TISA) is a federal law designed to help promote competition between depository institutions and make it easier for consumers to compare interest rates, fees, and terms associated with savings institutions’ deposit accounts.
Detailed explanation-2: -For variable-rate accounts, an institution must disclose the following: • the fact that the interest rate and annual percentage yield may change, • how the interest rate is determined, • the frequency with which the interest rate may change, and • any limitation on the amount the interest rate may change.
Detailed explanation-3: -Disclosures at account opening (§ 230.4(a)(1)) A depository institution must provide account disclosures to a consumer before an account is opened or a service is provided, whichever is earlier. (An institution is deemed to have provided a service when a fee, required to be disclosed, is assessed.)
Detailed explanation-4: -Deposit accounts include: Savings accounts. Checking (demand deposit) accounts. Money market accounts.