According to the Truth-in-Savings Act, the interest rate that banks are required to report when you deposit money in an account is known as
A)capital-gains yield.
B)annual percentage yield.
C)current yield.
D)total return.

Question

Quizplus · Accepted Answer

The correct term for the interest rate that banks are required to report is the annual percentage yield (APY). The APY is the total amount of interest earned in a year, including compound interest, and gives a more accurate picture of the true return on an investment than simply reporting the interest rate. The other answer choices are not related to this concept.

According to the Truth-In-Savings Act, the Interest Rate That Banks