Question 1

Asset management accounts combine many cash management services into one account.

Accepted Answer

A) True 
 B)False  True

Question 2

____ is not a liquid asset.

Accepted Answer

A)  Bond mutual funds 
B)  An interest-paying checking account 
C)  A passbook savings account 
D)  A checking account 
E)  A money market mutual fund 
A)  Bond mutual funds 
B)  An interest-paying checking account 
C)  A passbook savings account 
D)  A checking account 
E)  A money market mutual fund A

Question 3

The rate of return on a Series EE savings bond will be constant over the life of the bond.

Accepted Answer

A) True 
 B)False  False

Question 4

Money Market Mutual Funds invest in long-term treasury securities and other types of bonds.

Accepted Answer

A) True 
 B)False

Question 5

Asset management accounts are offered by most banks and are typically FDIC insured.

Accepted Answer

A) True 
 B)False

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Your bank does not levy a service charge on your checking account as long as a $1,000 minimum balance is maintained.Your bank [can | cannot] advertise this as free checking.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 7

There are some limitations on check writing for both MMDAs and MMMFs.

Accepted Answer

A) True 
 B)False

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Financial institutions [must pay at least a federally mandated minimum interest rate | may pay any interest rate they want] on their various accounts.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 9

ATM transactions require the use of a PIN.

Accepted Answer

A) True 
 B)False

Question 10

Money held in checking accounts is liquid.

Accepted Answer

A) True 
 B)False

Question 11

A major reason for overdrafts is the inability of a check writer to keep an accurate check ledger.

Accepted Answer

A) True 
 B)False

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Maggie wants to open a checking account that will be the least expensive given her normal financial transactions.She typically writes 15 checks a month and uses an ATM 35 times a month.Her minimum checking balances falls to about $350 in an average month.Which of the following accounts would be least expensive for Maggie? (Show all your work. )
Account A:
   Account B:

Accepted Answer

Account A
Cost of Account A =

Question 13

EFTS allow you to make payments that occur on a regular basis.

Accepted Answer

A) True 
 B)False

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-EE savings bonds may be redeemed [any time after the first 12 months | only at the maturity date].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 15

Banks and other financial institutions insure the contents of safe-deposit boxes.

Accepted Answer

A) True 
 B)False

Question 16

The key to a successful savings program is to save regularly.

Accepted Answer

A) True 
 B)False

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-[Anyone | Only those with an account at the bank] could get a check certified.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 18

Money Market Mutual Funds

Accepted Answer

A)  allow check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered by banks,S & Ls,and credit unions. 
E)  all of these. 
A)  allow check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered by banks,S & Ls,and credit unions. 
E)  all of these.

Question 19

One can typically get the best exchange rate when traveling in foreign countries by getting cash through your bank's ATM network.

Accepted Answer

A) True 
 B)False

Question 20

S&Ls represent the largest segment of the financial institutions industry.

Accepted Answer

A) True 
 B)False

Asset management accounts combine many cash management services into one account.

____ is not a liquid asset.

The rate of return on a Series EE savings bond will be constant over the life of the bond.

Money Market Mutual Funds invest in long-term treasury securities and other types of bonds.

Asset management accounts are offered by most banks and are typically FDIC insured.

There are some limitations on check writing for both MMDAs and MMMFs.

ATM transactions require the use of a PIN.

Money held in checking accounts is liquid.

A major reason for overdrafts is the inability of a check writer to keep an accurate check ledger.

EFTS allow you to make payments that occur on a regular basis.

Banks and other financial institutions insure the contents of safe-deposit boxes.

The key to a successful savings program is to save regularly.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -[Anyone | Only those with an account at the bank] could get a check certified.

Money Market Mutual Funds

One can typically get the best exchange rate when traveling in foreign countries by getting cash through your bank's ATM network.

S&Ls represent the largest segment of the financial institutions industry.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 4: Managing Your Cash and Savings

Asset management accounts combine many cash management services into one account.

____ is not a liquid asset.

The rate of return on a Series EE savings bond will be constant over the life of the bond.

Money Market Mutual Funds invest in long-term treasury securities and other types of bonds.

Asset management accounts are offered by most banks and are typically FDIC insured.

There are some limitations on check writing for both MMDAs and MMMFs.

ATM transactions require the use of a PIN.

Money held in checking accounts is liquid.

A major reason for overdrafts is the inability of a check writer to keep an accurate check ledger.

EFTS allow you to make payments that occur on a regular basis.

Banks and other financial institutions insure the contents of safe-deposit boxes.

The key to a successful savings program is to save regularly.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -[Anyone | Only those with an account at the bank] could get a check certified.

Money Market Mutual Funds

One can typically get the best exchange rate when traveling in foreign countries by getting cash through your bank's ATM network.

S&Ls represent the largest segment of the financial institutions industry.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters