Term Answer Description Compound interest This form of check is drawn on the account of a financial institution and is backed by the creditworthiness of the institution. It is often required by sellers in lieu of a personal check. A. Demand deposit B. This is the general name given to deposits held by investors who are willing to invest their funds for longer periods of time and interested in earning higher interest rates than are available on demand deposits Overdraft C. This is the term applied to the practice of routinely managing an individual's or family's cash and near-cash assets This refers to an insurance program that protects depositor funds against the failure of the insured depository institution Account reconciliation Cash management D. E. This is the name given to the earnings on an amount which is determined based on the interest rate applied only to the initial deposit. Deposit insurance Cashier's check F. These financial institutions are legally allowed to solicit and accept monetary deposits from individuals or entities G. In the case of this condition, banks return the check to the party to whom the check was written due to insufficient balance in the account. Time deposit H. This is the name applied to interest earned on the initial deposit amount plus the previously earned interest. Simple interest I. This is the process of comparing the balances in the bank's records with those in the account holder's ledger to identify possible errors in recording checks or deposits Depository institution . Funds held in this type of account (also called a checking account) must be honored, or paid, by the depository institution immediately upon demand by the account holder