Exam 4: Managing Your Cash and Savings

Brent had $450 in his checking account when his EFTS card and PIN were stolen almost a week ago. Because he has been ill, he didn't report the theft until today, five days after the theft occurred. The delay in notifying the bank means that he could lose:

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

Cash and near-cash resources are known as:

The percentage of _____ out of disposable income has decreased due to low interest rates.

The minimum amount that you must keep in an account every day is an important criterion when comparing the features and requirements of different checking accounts offered by a bank.

Laura has a $100,000 balance in her checking account at Best Bank, and she has purchased a certificate of deposit (CD)worth $50,000 issued by Best Bank. Laura is also thinking of investing $200,000 either in Best Bank or in Trust Bank. Which of the following is a suitable strategy for Laura if she wants her deposits to be completely insured?

Which of the following savings vehicles is free of state and local income taxes?

Jane is a college student who withdraws cash at least five times a week to meet her everyday expenses. Jane should have a checking account with good:

Low interest rates create economic distortions, especially when real, inflation-adjusted interest rates are positive.

Which of the following is an aspect of asset management accounts?

Factors that typically influence the choice of where to maintain a checking account are:

Banks must notify customers ______  days before lowering rates on deposit accounts or certificates of deposit.

Keeping valuables in a safe-deposit box may reduce your homeowner's insurance premium by eliminating the "riders" that are often needed to cover such items.

Liquid assets include your:

An investor receives the highest interest rate on his or her:

You are buying a large amount of merchandise through the mail from a dealer several hundred miles from you with whom you have never dealt before. The dealer will probably require that you pay him with:

Individuals prefer to invest their savings in stocks rather than traditional instruments like Treasury bonds because bonds have:

Which of the following statements regarding safe-deposit boxes offered by banks is true?

Low interest rates result in:

One can hold a credit card issued by a stock brokerage firm.