Exam 4: Managing Your Cash and Savings

If you invest $1,200 per year at the end of each year for 40 years at an 8% rate of return,you will have accumulated (Use time value table or financial calculator. )

You can stop payment when you purchase an item with your debit card.

Deregulation of financial institutions in the 1980s has made it easier to distinguish between the services of a commercial bank and a savings and loan association.

Christina works at a company that offers direct deposit of her paycheck.This service is called

There are numerous advantages and disadvantages of on-line bill payment systems.Which of the following is a potential advantage?

Commercial banks are insured by the

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. -"For deposit only" would indicate a [blank | restricted] endorsement.

If Lois has $2,000 in checking,$50,000 in a money market account,and $75,000 in certificates of deposit (all individual accounts)at her local bank,her accounts would be insured through FDIC for $100,000.

Funds in a ____ must remain on deposit for a stated time period in order to avoid an interest penalty.

You are going on an overseas trip and you want to have checks that are easily converted into local currency.You should purchase

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 [credit union account | treasury bill holdings] would be free of state 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. -The FDIC insures each [depositor | account] up to a stated maximum dollar amount at any given financial institution.

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 | would not] expect to receive a cash flow of interest from your Series EE bonds.

Which of the following are important safeguards when using on-line banking?

Harry just received $2,000 for graduation.He plans on investing this money for five years at 8% compounded annually.If he accomplishes this,Harry will have in an ending balance of (Use time value tables or financial calculator)

Most credit unions provide their members with deposit insurance.

If you invest $100 at 8% for one year,compounded semiannually,at the end of the year your balance will be (Use time value tables or financial calculator)

Certificates of deposit can be purchased only at banks,savings and loan associations,and credit unions.

Another term for the interest paid by credit unions on deposits is dividends.

The rate of return on liquid assets is relatively high compared to other types of investments.