Question 1

Whenever you write a check or make a deposit,an entry should be made on your

Accepted Answer

A)  deposit slip. 
B)  checkbook ledger. 
C)  check. 
D)  ATM account. 
E)  personal check. 
A)  deposit slip. 
B)  checkbook ledger. 
C)  check. 
D)  ATM account. 
E)  personal check.

Question 2

When reporting errors or unauthorized transactions,it is best to notify your bank

Accepted Answer

A)  by telephone 
B)  by letter,keeping a copy for your files. 
C)  by telephone and follow up with a letter and keep a copy for your files 
D)  none of the above 
A)  by telephone 
B)  by letter,keeping a copy for your files. 
C)  by telephone and follow up with a letter and keep a copy for your files 
D)  none of the above

Question 3

Since deregulation,some banks have begun ____,a nontraditional service for a bank.

Accepted Answer

A)  providing checking accounts 
B)  offering passbook savings 
C)  making consumer loans 
D)  selling stocks and bonds 
E)  providing check-cashing privileges 
A)  providing checking accounts 
B)  offering passbook savings 
C)  making consumer loans 
D)  selling stocks and bonds 
E)  providing check-cashing privileges

Question 4

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 pays 3% interest,compounded quarterly.At the end of one year,your $5,000 will have earned [$150 | over $150] interest.

Accepted Answer

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

Question 5

One can avoid early withdrawal penalties on CDs by purchasing them through brokerage firms.

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.
-A bank customer would expect to be able to write checks on his regular checking account and on his [certificate of deposit | money market fund].

Accepted Answer

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

Question 7

The liquid asset that is most easily used for household transactions is a

Accepted Answer

A)  checking account. 
B)  money market deposit account. 
C)  money market mutual fund. 
D)  U.S.Treasury bill. 
E)  passbook savings account. 
A)  checking account. 
B)  money market deposit account. 
C)  money market mutual fund. 
D)  U.S.Treasury bill. 
E)  passbook savings account.

Question 8

The more frequently a bank compounds interest,____ will be.

Accepted Answer

A)  the higher the stated interest rate 
B)  the lower the stated interest rate 
C)  the higher the APY 
D)  the lower the APY 
E)  a and c 
A)  the higher the stated interest rate 
B)  the lower the stated interest rate 
C)  the higher the APY 
D)  the lower the APY 
E)  a and c

Question 9

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.
-[More than | Fewer than] half the banking institutions in the U.S.are federally insured.

Accepted Answer

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

Question 10

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.
-Sammi and Jason have $4,000 to deposit in a money market fund earning 5%.If they add $2,000 to that account annually,how much will they have accumulated in 15 years? (Show all work. )

Accepted Answer

$51,472 or $51,473
Future valu

Question 11

A passbook savings account may be a useful tool in managing everyday household transactions.

Accepted Answer

A) True 
 B)False

Question 12

The interest on your Series EE savings bonds

Accepted Answer

A)  will be taxable every year as it accrues. 
B)  will be tax deferred until redemption. 
C)  will be subject to both federal and state income taxes upon redemption. 
D)  is tax free of both federal and state income taxes upon redemption. 
E)  None of these. 
A)  will be taxable every year as it accrues. 
B)  will be tax deferred until redemption. 
C)  will be subject to both federal and state income taxes upon redemption. 
D)  is tax free of both federal and state income taxes upon redemption. 
E)  None of these.

Question 13

A liquid financial asset can be quickly converted into cash,but there is often a large loss of value as a result of the quick conversion to cash.

Accepted Answer

A) True 
 B)False

Question 14

Money market deposit accounts are insured by the FDIC if purchased at an insured bank.

Accepted Answer

A) True 
 B)False

Question 15

Money Market Deposit Accounts

Accepted Answer

A)  allow unlimited check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered only by credit unions. 
E)  all of these. 
A)  allow unlimited check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered only by credit unions. 
E)  all of these.

Question 16

Credit unions are mainly found in the northeastern U.S.

Accepted Answer

A) True 
 B)False

Question 17

Within how many business days must a bank make proceeds of deposited checks available?

Accepted Answer

A)  3 days for all checks 
B)  3 days for local and 7 days for non-local checks 
C)  2 days for local and 5 days for non-local checks 
D)  5 days for all checks 
E)  7 days for all checks 
A)  3 days for all checks 
B)  3 days for local and 7 days for non-local checks 
C)  2 days for local and 5 days for non-local checks 
D)  5 days for all checks 
E)  7 days for all checks

Question 18

A cashier's check is written on the bank's account rather than on a customer's account.

Accepted Answer

A) True 
 B)False

Question 19

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.
-During the past decade,bank service charges have tended to [decrease | increase].

Accepted Answer

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

Question 20

The annual percentage yield (APY)formula considers compounding when determining an interest rate.

Accepted Answer

A) True 
 B)False

Whenever you write a check or make a deposit,an entry should be made on your

When reporting errors or unauthorized transactions,it is best to notify your bank

Since deregulation,some banks have begun ____,a nontraditional service for a bank.

One can avoid early withdrawal penalties on CDs by purchasing them through brokerage firms.

The liquid asset that is most easily used for household transactions is a

The more frequently a bank compounds interest,____ will be.

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. -[More than | Fewer than] half the banking institutions in the U.S.are federally insured.

A passbook savings account may be a useful tool in managing everyday household transactions.

The interest on your Series EE savings bonds

A liquid financial asset can be quickly converted into cash,but there is often a large loss of value as a result of the quick conversion to cash.

Money market deposit accounts are insured by the FDIC if purchased at an insured bank.

Money Market Deposit Accounts

Credit unions are mainly found in the northeastern U.S.

Within how many business days must a bank make proceeds of deposited checks available?

A cashier's check is written on the bank's account rather than on a customer's 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. -During the past decade,bank service charges have tended to [decrease | increase].

The annual percentage yield (APY)formula considers compounding when determining an interest rate.

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

Whenever you write a check or make a deposit,an entry should be made on your

When reporting errors or unauthorized transactions,it is best to notify your bank

Since deregulation,some banks have begun ____,a nontraditional service for a bank.

One can avoid early withdrawal penalties on CDs by purchasing them through brokerage firms.

The liquid asset that is most easily used for household transactions is a

The more frequently a bank compounds interest,____ will be.

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. -[More than | Fewer than] half the banking institutions in the U.S.are federally insured.

A passbook savings account may be a useful tool in managing everyday household transactions.

The interest on your Series EE savings bonds

A liquid financial asset can be quickly converted into cash,but there is often a large loss of value as a result of the quick conversion to cash.

Money market deposit accounts are insured by the FDIC if purchased at an insured bank.

Money Market Deposit Accounts

Credit unions are mainly found in the northeastern U.S.

Within how many business days must a bank make proceeds of deposited checks available?

A cashier's check is written on the bank's account rather than on a customer's 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. -During the past decade,bank service charges have tended to [decrease | increase].

The annual percentage yield (APY)formula considers compounding when determining an interest rate.

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