Question 1

Share draft accounts are commonly offered by

Accepted Answer

A)  commercial banks. 
B)  savings and loan associations. 
C)  mutual savings banks. 
D)  credit unions. 
E)  insurance companies. 
A)  commercial banks. 
B)  savings and loan associations. 
C)  mutual savings banks. 
D)  credit unions. 
E)  insurance companies.

Question 2

Credit unions typically pay higher rates of return on savings than banks and savings and loan associations.

Accepted Answer

A) True 
 B)False

Question 3

Compound interest means that a savings account earns interest on the interest previously earned.

Accepted Answer

A) True 
 B)False

Question 4

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.

Accepted Answer

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

Question 5

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.

Accepted Answer

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

Question 6

The main business of an S&L is to provide home mortgage and home improvement loans.

Accepted Answer

A) True 
 B)False

Question 7

The most important rule for establishing a savings plan is to

Accepted Answer

A)  set realistic goals. 
B)  take advantage of compounding. 
C)  pay yourself first. 
D)  keep it simple. 
E)  try some gimmicks. 
A)  set realistic goals. 
B)  take advantage of compounding. 
C)  pay yourself first. 
D)  keep it simple. 
E)  try some gimmicks.

Question 8

You have $450 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 8 business days.

Accepted Answer

A)  $ 0 
B)  $ 25 
C)  $ 50 
D)  $450 
E)  $500 
A)  $ 0 
B)  $ 25 
C)  $ 50 
D)  $450 
E)  $500

Question 9

When doing a DDA reconciliation,interest earned on your account should be

Accepted Answer

A)  deducted from your checkbook ledger. 
B)  added to your checkbook ledger. 
C)  ignored because the bank has already recorded it. 
D)  listed as outstanding. 
E)  compared to your interest calculations. 
A)  deducted from your checkbook ledger. 
B)  added to your checkbook ledger. 
C)  ignored because the bank has already recorded it. 
D)  listed as outstanding. 
E)  compared to your interest calculations.

Question 10

The rate of return on a Series EE savings bond will be constant over the life of the bond.

Accepted Answer

A) True 
 B)False

Question 11

If interest on a savings account is compounded semiannually,the effective rate of interest will be

Accepted Answer

A)  higher than the nominal rate. 
B)  lower than the nominal rate. 
C)  the same as the simple rate. 
D)  equal to the nominal rate. 
E)  lower than the simple rate. 
A)  higher than the nominal rate. 
B)  lower than the nominal rate. 
C)  the same as the simple rate. 
D)  equal to the nominal rate. 
E)  lower than the simple rate.

Question 12

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.
-Many people choose a bank solely on [services | convenience].

Accepted Answer

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

Question 13

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 14

An Asset Management Account provides a

Accepted Answer

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

Question 15

Money Market Mutual Funds

Accepted Answer

A)  allow check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered by banks, S & Ls, and credit unions. 
E)  all of these. 
A)  allow check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered by banks, S & Ls, and credit unions. 
E)  all of these.

Question 16

Low interest rates are helpful in

Accepted Answer

A)  facilitating a greater supply of money for borrowers. 
B)  reducing the service cost on our national debt. 
C)  encouraging a higher savings rate 
D)  a and b 
E)  None of the above 
A)  facilitating a greater supply of money for borrowers. 
B)  reducing the service cost on our national debt. 
C)  encouraging a higher savings rate 
D)  a and b 
E)  None of the above

Question 17

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.
-Financial institutions [must pay at least a federally mandated minimum interest rate | may pay any interest rate they want] on their various accounts.

Accepted Answer

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

Question 18

With low interest rates,savers have begun investing in stock where higher yields can be found.

Accepted Answer

A) True 
 B)False

Question 19

In the wake of the recent financial crisis,the U.S.personal saving rate decreased.

Accepted Answer

A) True 
 B)False

Question 20

Sandy wants to go on a trip in 10 years.If she invests $1,000 per year at the end of each year for 10 years at a 12% interest rate,she will accumulate ____ to spend on her trip (Use time value table or financial calculator.)

Accepted Answer

A)  $10,610. 
B)  $12,130. 
C)  $15,105. 
D)  $16,710. 
E)  $17,549. 
A)  $10,610. 
B)  $12,130. 
C)  $15,105. 
D)  $16,710. 
E)  $17,549.

Share draft accounts are commonly offered by

Credit unions typically pay higher rates of return on savings than banks and savings and loan associations.

Compound interest means that a savings account earns interest on the interest previously earned.

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.

The main business of an S&L is to provide home mortgage and home improvement loans.

The most important rule for establishing a savings plan is to

You have $450 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 8 business days.

When doing a DDA reconciliation,interest earned on your account should be

The rate of return on a Series EE savings bond will be constant over the life of the bond.

If interest on a savings account is compounded semiannually,the effective rate of interest will be

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. -Many people choose a bank solely on [services | convenience].

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

An Asset Management Account provides a

Money Market Mutual Funds

Low interest rates are helpful in

With low interest rates,savers have begun investing in stock where higher yields can be found.

In the wake of the recent financial crisis,the U.S.personal saving rate decreased.

Sandy wants to go on a trip in 10 years.If she invests $1,000 per year at the end of each year for 10 years at a 12% interest rate,she will accumulate ____ to spend on her trip (Use time value table or financial calculator.)

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

Share draft accounts are commonly offered by

Credit unions typically pay higher rates of return on savings than banks and savings and loan associations.

Compound interest means that a savings account earns interest on the interest previously earned.

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.

The main business of an S&L is to provide home mortgage and home improvement loans.

The most important rule for establishing a savings plan is to

You have $450 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 8 business days.

When doing a DDA reconciliation,interest earned on your account should be

The rate of return on a Series EE savings bond will be constant over the life of the bond.

If interest on a savings account is compounded semiannually,the effective rate of interest will be

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. -Many people choose a bank solely on [services | convenience].

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

An Asset Management Account provides a

Money Market Mutual Funds

Low interest rates are helpful in

With low interest rates,savers have begun investing in stock where higher yields can be found.

In the wake of the recent financial crisis,the U.S.personal saving rate decreased.

Sandy wants to go on a trip in 10 years.If she invests $1,000 per year at the end of each year for 10 years at a 12% interest rate,she will accumulate ____ to spend on her trip (Use time value table or financial calculator.)

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