Exam 4: Managing Your Cash and Savings

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 low interest rate economic environment is more likely to be accompanied by [lower unemployment | higher unemployment].

The stated interest rate on your account is 5%,interest compounded monthly.If you deposit $50 each month,how much will you have in your account in 5 years? (Use time value tables or financial calculator)

As of 2012,if your account balances at a bank are $115,000,you will have depositor's insurance for up to $250,000.

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)

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. -EE savings bonds are also called [War Bonds | Patriot Bonds].

Which of the following is not true of low interest rates?

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

As of 2012,the FDIC insures depositor's funds up to $250,000 at member banks.

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

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.)

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

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].

Low interest rates that have persisted since the financial crisis of 2008-09 have been a net benefit to

Which of the following is not a strategy to building your nest egg:

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

ATM transactions require the use of a PIN.

Savings and loan associations (S & Ls)channel the savings of depositors primarily into automotive loans.

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 most common type of joint checking account would require the [signature of either party | signatures of both parties] on all checks.

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. -EE savings bonds may be redeemed [any time after the first 12 months | only at the maturity date].

The minimum denomination of T-bills you can buy is