Banking Term: Annual Percentage Yield (APY)
Find important banking term that is useful in upcoming banking exam.
Definition: It is the percentage rate that reflects the total amount of interest, which is paid on deposit account on the basis of interest rate and frequency of compounding for 365 days in a year.
Multiple Choice Questions
The interest rate charged per period multiplied by the number of periods per year is called………………..?
- effective annual rate
- annual percentage rate
- periodic interest rate
- compound interest rate
- daily interest rate