The rate of return on a savings account that regulated depository institutions must report to their customers is called the:
A) Annual percentage rate (APR)
B) Prevailing market rate (PMR)
C) Effective annual rate (EAR)
D) Annual percentage yield (APY)
E) None of the above

Question

Quizplus · Accepted Answer

The Annual Percentage Yield (APY) is the rate of return on a savings account that regulated depository institutions must report to their customers. It takes into account the effect of compounding interest, providing a more accurate reflection of the true earnings from an investment compared to the simple interest rate.

The Rate of Return on a Savings Account That Regulated