Exam 4: Managing Your Cash and Savings

One could expect to earn a higher rate of interest on a certificate of deposit that on a checking account.

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. -[Money market deposit accounts | Asset management accounts] are protected by the Securities Investor Protection Corporation.

Although there are no legal minimum balances for a NOW account,many institutions impose their own requirement,often between $500 and $1,000 before they pay any interest.

A regular savings account is a demand deposit.

If one wanted to make monthly deposits to accumulate funds for future expenditures,a money market account would be an appropriate savings vehicle.

You have $900 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 60 business days.

Asset management accounts are protected by the Federal Deposit Insurance Corporation.

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. -You are planning to deposit $5,000 in a bank.At the end of one year,you will have more money in this account if interest is compounded [semiannually | quarterly].

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. -Money market deposit accounts [are | are not] insured by an agency of the federal government.

Sandy wants to go on a trip in 10 years.If she invests $1,000 per year at the end of each year for 10 years at a 12% interest rate,she will accumulate ____ to spend on her trip (Use time value table or financial calculator. )

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 checkbook balance shows $706.50.The bank statement shows $772.77.The bank paid $2.50 interest.Checks 1501 ($85),1507 ($50.16),1511 ($20.50)are not shown on the statement.A service charge of $5 was levied by the bank.You made a $85 deposit yesterday that is not on the statement.What is the reconciled balance? (Show all work. )

Series EE Savings bonds are now called Patriot Bonds.

Specialization within the financial institutions industry continues to increase.