Question 1

From the bank's perspective,ATM transactions are more costly than on-line banking transactions.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The maximum amount of interest a bank can now pay on a passbook savings account is 3 1/2%.

Accepted Answer

A) True 
 B)False

Question 4

A bank could advertise as "free" a checking account that requires a minimum balance of $3,000 to avoid monthly service charges.

Accepted Answer

A) True 
 B)False

Question 5

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.
-Credit unions are more likely to be paying [much | slightly] higher interest rates on their accounts than a commercial bank.

Accepted Answer

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

Question 6

The market value of liquid assets fluctuates over the short-run.

Accepted Answer

A) True 
 B)False

Question 7

You should invest in long-term CDs when you expect interest rate to fall.

Accepted Answer

A) True 
 B)False

Question 8

If you write a check for an amount greater than your account balance,the result will be

Accepted Answer

A)  an endorsement. 
B)  a reconciliation. 
C)  an overdraft. 
D)  a share draft. 
E)  a stop payment. 
A)  an endorsement. 
B)  a reconciliation. 
C)  an overdraft. 
D)  a share draft. 
E)  a stop payment.

Question 9

John Anderson deposited $10,000 in a CD for 3 years at 5%.It should now be worth (Use time value tables or financial calculator)

Accepted Answer

A)  $10,500. 
B)  $10,725. 
C)  $11,400. 
D)  $11,580. 
E)  $12,400. 
A)  $10,500. 
B)  $10,725. 
C)  $11,400. 
D)  $11,580. 
E)  $12,400.

Question 10

Mary Young has a checking account in her name and a joint savings account with her husband at her bank.The maximum amount of deposit insurance she has is $100,000.

Accepted Answer

A) True 
 B)False

Question 11

Janie Long has checking and savings accounts in a federally insured financial institution.The maximum amount of her insurance coverage is

Accepted Answer

A)  $ 50,000 per account. 
B)  $250,000. 
C)  $100,000 per account. 
D)  $200,000. 
E)  $200,000 per account. 
A)  $ 50,000 per account. 
B)  $250,000. 
C)  $100,000 per account. 
D)  $200,000. 
E)  $200,000 per account.

Question 12

A check you wrote to buy shoes last week has not yet been processed by the bank.It is said to be

Accepted Answer

A)  outstanding. 
B)  in transit. 
C)  endorsed. 
D)  certified. 
E)  subtracted. 
A)  outstanding. 
B)  in transit. 
C)  endorsed. 
D)  certified. 
E)  subtracted.

Question 13

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.
-An asset management account is likely to require a minimum investment of at least [$1,000 | $5,000].

Accepted Answer

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

Question 14

Which of the following would be best suited to using an Internet bank?

Accepted Answer

A)  Nancy Johnson,a young businesswoman who uses bank financing regularly for her business 
B)  Milan Sosa,an older gentleman who enjoys visiting his local banker 
C)  Molly Peterson,a woman who uses multiple bank services including a safe-deposit box 
D)  Fred Longoria,a man who uses checking and savings but never goes to his bank 
E)  All of the above would be good candidates because the cost of Internet banking is lower than other types of banks. 
A)  Nancy Johnson,a young businesswoman who uses bank financing regularly for her business 
B)  Milan Sosa,an older gentleman who enjoys visiting his local banker 
C)  Molly Peterson,a woman who uses multiple bank services including a safe-deposit box 
D)  Fred Longoria,a man who uses checking and savings but never goes to his bank 
E)  All of the above would be good candidates because the cost of Internet banking is lower than other types of banks.

Question 15

A deposit of $6,000 saved in a CD for 10 years at 3% will be worth (select the closest answer)

Accepted Answer

A)  $7,340. 
B)  $7,800. 
C)  $8,040. 
D)  $8,678. 
E)  $9,005. 
A)  $7,340. 
B)  $7,800. 
C)  $8,040. 
D)  $8,678. 
E)  $9,005.

Question 16

A check you issued last week has been stolen.You can prevent it from being withdrawn from your account by an unauthorized person by

Accepted Answer

A)  writing a new check. 
B)  depositing the correct amount of money. 
C)  requesting a stop payment. 
D)  tearing up the check. 
E)  properly endorsing the check. 
A)  writing a new check. 
B)  depositing the correct amount of money. 
C)  requesting a stop payment. 
D)  tearing up the check. 
E)  properly endorsing the check.

Question 17

The Annual Percentage Yield is the same as the

Accepted Answer

A)  compound rate. 
B)  real rate. 
C)  simple rate. 
D)  effective rate. 
E)  nominal rate. 
A)  compound rate. 
B)  real rate. 
C)  simple rate. 
D)  effective rate. 
E)  nominal rate.

Question 18

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.
-Gordon and Susan have a regular savings plan and have accumulated $8,000.How much will this be worth in 10 years if they can earn 2% on the money.They are not planning to add to this savings account.(Show all work. )

Accepted Answer

$9,752
Future value

Question 19

As of 2009,if your account balances at a bank are $115,000,you will have depositor's insurance for up to $250,000.

Accepted Answer

A) True 
 B)False

Question 20

Credit union members are expected to have some common bond.

Accepted Answer

A) True 
 B)False

From the bank's perspective,ATM transactions are more costly than on-line banking transactions.

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

The maximum amount of interest a bank can now pay on a passbook savings account is 3 1/2%.

A bank could advertise as "free" a checking account that requires a minimum balance of $3,000 to avoid monthly service charges.

The market value of liquid assets fluctuates over the short-run.

You should invest in long-term CDs when you expect interest rate to fall.

If you write a check for an amount greater than your account balance,the result will be

John Anderson deposited $10,000 in a CD for 3 years at 5%.It should now be worth (Use time value tables or financial calculator)

Mary Young has a checking account in her name and a joint savings account with her husband at her bank.The maximum amount of deposit insurance she has is $100,000.

Janie Long has checking and savings accounts in a federally insured financial institution.The maximum amount of her insurance coverage is

A check you wrote to buy shoes last week has not yet been processed by the bank.It is said to be

Which of the following would be best suited to using an Internet bank?

A deposit of $6,000 saved in a CD for 10 years at 3% will be worth (select the closest answer)

A check you issued last week has been stolen.You can prevent it from being withdrawn from your account by an unauthorized person by

The Annual Percentage Yield is the same as the

As of 2009,if your account balances at a bank are $115,000,you will have depositor's insurance for up to $250,000.

Credit union members are expected to have some common bond.

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

From the bank's perspective,ATM transactions are more costly than on-line banking transactions.

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

The maximum amount of interest a bank can now pay on a passbook savings account is 3 1/2%.

A bank could advertise as "free" a checking account that requires a minimum balance of $3,000 to avoid monthly service charges.

The market value of liquid assets fluctuates over the short-run.

You should invest in long-term CDs when you expect interest rate to fall.

If you write a check for an amount greater than your account balance,the result will be

John Anderson deposited $10,000 in a CD for 3 years at 5%.It should now be worth (Use time value tables or financial calculator)

Mary Young has a checking account in her name and a joint savings account with her husband at her bank.The maximum amount of deposit insurance she has is $100,000.

Janie Long has checking and savings accounts in a federally insured financial institution.The maximum amount of her insurance coverage is

A check you wrote to buy shoes last week has not yet been processed by the bank.It is said to be

Which of the following would be best suited to using an Internet bank?

A deposit of $6,000 saved in a CD for 10 years at 3% will be worth (select the closest answer)

A check you issued last week has been stolen.You can prevent it from being withdrawn from your account by an unauthorized person by

The Annual Percentage Yield is the same as the

As of 2009,if your account balances at a bank are $115,000,you will have depositor's insurance for up to $250,000.

Credit union members are expected to have some common bond.

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