Question 1

Credit union members are expected to have some common bond.

Accepted Answer

A) True 
 B)False

Question 2

The stated interest rate on your account is 3.5%,interest compounded monthly.If you deposit $100 each month,how much will you have in your account in 8 years? (Use time value tables or financial calculator)

Accepted Answer

A)  $ 9,600 
B)  $ 9,936 
C)  $11,060 
D)  $12,288 
E)  $12,350 
A)  $ 9,600 
B)  $ 9,936 
C)  $11,060 
D)  $12,288 
E)  $12,350

Question 3

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.
-In the wake of the recent financial crisis,the U.S.personal saving rate has [increased | decreased].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The nominal rate of interest will be lower than the effective rate of interest when an account compounds monthly.

Accepted Answer

A) True 
 B)False

Question 6

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.
-Today the differences between a commercial bank and an S&L are [minor | major].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 7

A(n)____ is not an interest-bearing account.

Accepted Answer

A)  money market mutual fund 
B)  money market deposit account 
C)  NOW account 
D)  asset management account 
E)  regular checking account 
A)  money market mutual fund 
B)  money market deposit account 
C)  NOW account 
D)  asset management account 
E)  regular checking account

Question 8

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 9

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 10

Stop-payment services are easier with electronic funds transfers than with traditional check payments.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  an ATM service. 
B)  a FDIC service. 
C)  a money market service. 
D)  an EFT service 
E)  an overdraft service. 
A)  an ATM service. 
B)  a FDIC service. 
C)  a money market service. 
D)  an EFT service 
E)  an overdraft service.

Question 12

Specialization within the financial institutions industry continues to increase.

Accepted Answer

A) True 
 B)False

Question 13

Lower borrowing costs encourage the substitution of debt for equity in corporate capital structures,which increases financial risk.

Accepted Answer

A) True 
 B)False

Question 14

Low interest rates encourage the substitution of capital for labor,thereby depressing employment.

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Joe Gustafson is a very busy person who likes to handle all his financial services needs with one account if possible.Which of the following types of accounts would best serve this need?

Accepted Answer

A)  checking account. 
B)  money market deposit account. 
C)  brokerage account. 
D)  asset management account. 
E)  all of the above. 
A)  checking account. 
B)  money market deposit account. 
C)  brokerage account. 
D)  asset management account. 
E)  all of the above.

Question 19

Most credit unions provide their members with deposit insurance.

Accepted Answer

A) True 
 B)False

Question 20

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.

Credit union members are expected to have some common bond.

The stated interest rate on your account is 3.5%,interest compounded monthly.If you deposit $100 each month,how much will you have in your account in 8 years? (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. -In the wake of the recent financial crisis,the U.S.personal saving rate has [increased | decreased].

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

The nominal rate of interest will be lower than the effective rate of interest when an account compounds monthly.

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. -Today the differences between a commercial bank and an S&L are [minor | major].

A(n)____ is not an interest-bearing account.

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

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

Stop-payment services are easier with electronic funds transfers than with traditional check payments.

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

Specialization within the financial institutions industry continues to increase.

Lower borrowing costs encourage the substitution of debt for equity in corporate capital structures,which increases financial risk.

Low interest rates encourage the substitution of capital for labor,thereby depressing employment.

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.

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

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

Joe Gustafson is a very busy person who likes to handle all his financial services needs with one account if possible.Which of the following types of accounts would best serve this need?

Most credit unions provide their members with deposit insurance.

The interest on your Series EE savings bonds

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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

Credit union members are expected to have some common bond.

The stated interest rate on your account is 3.5%,interest compounded monthly.If you deposit $100 each month,how much will you have in your account in 8 years? (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. -In the wake of the recent financial crisis,the U.S.personal saving rate has [increased | decreased].

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

The nominal rate of interest will be lower than the effective rate of interest when an account compounds monthly.

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. -Today the differences between a commercial bank and an S&L are [minor | major].

A(n)____ is not an interest-bearing account.

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

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

Stop-payment services are easier with electronic funds transfers than with traditional check payments.

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

Specialization within the financial institutions industry continues to increase.

Lower borrowing costs encourage the substitution of debt for equity in corporate capital structures,which increases financial risk.

Low interest rates encourage the substitution of capital for labor,thereby depressing employment.

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

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

Joe Gustafson is a very busy person who likes to handle all his financial services needs with one account if possible.Which of the following types of accounts would best serve this need?

Most credit unions provide their members with deposit insurance.

The interest on your Series EE savings bonds

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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