Exam 4: Managing Your Cash and Savings

You had $800 in your checking account when your EFTS card and PIN were stolen. You didn't report the theft for two months after your periodic statement was mailed. How much could you lose?

Credit unions are:

Convenience is a reason for the growth in popularity of:

The interest earned on an individual's _____ is free of state and local income taxes.

Which of the following statements regarding low interest rates is true?

A(n)_____ is traditionally a non-interest-paying demand deposit account.

The Federal Deposit Insurance Corporation (FDIC)insures each _____  up to a stated maximum dollar amount at any given financial institution.

John Anderson deposited $10,000 in a certificate of deposit (CD)for 3 years at 5%. At maturity, it will be worth: (Use time value tables or a financial calculator. Select the closest answer.)

When a savings bank is a mutual association, it is owned by the:

Which of the following are protected by the Federal Deposit Insurance Corporation (FDIC)?

The minimum denomination of T-bills is:

The financial crisis of 2008-2009 followed by low interest rates has been beneficial to:

Extremely low interest rates favor investors and boost the incentive to save.

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 You can prevent the amount on the check from being withdrawn from your account by an unauthorized person by:

Interest rates are the lowest on:

Low interest rates that have persisted since the financial crisis of 2008-2009 have been beneficial to:

People who do not have checking accounts often use:

A safe-deposit box in a bank can be opened only when the:

Maggie wants to open a checking account that will be the least expensive, given her normal financial transactions. She typically writes 15 checks a month and uses an ATM 35 times a month. Her monthly minimum checking balance falls to about $350 on an average. Which of the following accounts would be least expensive for Maggie? (Show all your work.) Account A: No monthly fee is charged if a minimum balance of at least $300 is maintained. A $5.00 fee is charged in any month the minimum balance falls below $300. An ATM fee of $0.10 per transaction is charged on all transactions. Account B: No monthly fee is charged if a minimum balance of at least $500 is maintained. A $3.00 fee plus $0.10\check is charged in any month the minimum balance falls below $500. There is no ATM fee on transactions. See 4-4: Maintaining a Checking Account.

Harry received a scholarship of $2,000. He plans to invest this money for 5 years at 8%, compounded annually. If he accomplishes this, Harry will have an ending balance of: (Use time value tables or a financial calculator. Select the closest answer.)