Exam 4: Managing Your Cash and Savings

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. -[Both the depositor and writer | Only the writer] of a "bad" check will likely be charged a fee by their/his banks/bank.

Liquid assets are held in order to

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. -Liquid assets would include your savings account and your [money market deposit account | stock mutual fund].

When an S & L is a mutual association,it means that it is owned by the

Historically,the primary purpose of savings and loan associations was to

Savings banks are mainly found in the northeastern U.S.

Maximizing the use of "float" is one advantage of using on-line banking services.

An Asset Management Account provides a

Compared to other depository financial institutions,credit unions

Convenience and improved record keeping are two advantages sited for on-line bill payment.

A ____ is an interest-bearing checking account.

The minimum denomination of T-bills you can buy is

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. -Interest earned on your [US EE savings bonds | municipal bond holdings] would be free of federal income taxes.

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] can purchase cashiers' checks.

You put $1,000 into a 12-month certificate of deposit.After seven months,you really need the money.The bank will let you have it before 12 months,but you will pay a penalty.

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. -[Both Treasury bills and Series EE savings bonds | Only Treasury bills] are bought at a discount.

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 would expect to find an asset management account at a [commercial bank | brokerage firm].

Which of the following accounts has special tax advantages under certain conditions when used to fund qualified college education expenses?

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. -Joe and Mary have a tenants in common savings account.When Joe dies,his portion of the account [will | will not] automatically go to Mary.

Passbook accounts are better than checking accounts if you want to accumulate money for future expenditures.