Question 1

Negotiable order of withdrawal (NOW)accounts manage and administer the investments in a trust account or from an estate.

Accepted Answer

A) True 
 B)False

Question 2

Cash is the only kind of liquid asset.

Accepted Answer

A) True 
 B)False

Question 3

Debit cards are a form of electronic funds transfer system (EFTS).

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a rented drawer in a bank's vault?

Accepted Answer

A) Safe-deposit box 
B) ATM 
C) Debit card 
D) NOW account 
E) Trust service 
A) Safe-deposit box 
B) ATM 
C) Debit card 
D) NOW account 
E) Trust service

Question 5

A check you wrote to buy shoes last week has not yet been approved by the bank. It is said to be:

Accepted Answer

A) outstanding. 
B) credited. 
C) endorsed. 
D) certified. 
E) deposited. 
A) outstanding. 
B) credited. 
C) endorsed. 
D) certified. 
E) deposited.

Question 6

The _____ department of a bank provides investment and estate planning advice.

Accepted Answer

A) safe-deposit 
B) electronic funds transfer 
C) debit card 
D) NOW account 
E) trust services 
A) safe-deposit 
B) electronic funds transfer 
C) debit card 
D) NOW account 
E) trust services

Question 7

You can hold an account with a mutual fund that allows you to write a limited number of checks.

Accepted Answer

A) True 
 B)False

Question 8

In account reconciliation, one of the steps in calculating the adjusted bank balance is:

Accepted Answer

A) deducting total withdrawals still outstanding from the bank balance. 
B) deducting total deposits still outstanding from the bank balance. 
C) adding the total credit card outstanding balance to the bank balance. 
D) adding bank service charges to the bank balance. 
E) subtracting interest paid on the account's balance for the period. 
A) deducting total withdrawals still outstanding from the bank balance. 
B) deducting total deposits still outstanding from the bank balance. 
C) adding the total credit card outstanding balance to the bank balance. 
D) adding bank service charges to the bank balance. 
E) subtracting interest paid on the account's balance for the period.

Question 9

Cash management helps in personal financial planning.

Accepted Answer

A) True 
 B)False

Question 10

The Federal Deposit Insurance Corporation (FDIC)covers consumer accounts at credit unions.

Accepted Answer

A) True 
 B)False

Question 11

Alice lost her EFTS card and reported it missing the next day. She found that $800 had been withdrawn from her savings account. Alice's loss is equal to:

Accepted Answer

A) $0. 
B) $25. 
C) $50. 
D) $800. 
E) $800 plus a fee. 
A) $0. 
B) $25. 
C) $50. 
D) $800. 
E) $800 plus a fee.

Question 12

Visa and MasterCard issue debit cards linked to your checking account.

Accepted Answer

A) True 
 B)False

Question 13

Kate tends to issue checks quite often without having a sufficient balance in her account. She should look for an account with a(n)_____ facility.

Accepted Answer

A) ATM 
B) overdraft protection 
C) trust services 
D) mutual fund management 
E) balance tracking 
A) ATM 
B) overdraft protection 
C) trust services 
D) mutual fund management 
E) balance tracking

Question 14

Christina's bank allows her employer to directly deposit her paycheck into her personal bank account. This service provided by Christina's bank is called a(n):

Accepted Answer

A) ATM service. 
B) Federal Deposit Insurance Corporation (FDI
C) service. 
C) money market service. 
D) electronic funds transfer system (EFTS)service. 
E) overdraft service. 
A) ATM service. 
B) Federal Deposit Insurance Corporation (FDI
C) service. 
C) money market service. 
D) electronic funds transfer system (EFTS)service. 
E) overdraft service.

Question 15

A lump-sum deposit of $8,000 left in a bank for 12 years at 9%, compounded annually, will result in an ending balance of: (Select the closest answer.)

Accepted Answer

A) $11,600. 
B) $16,640. 
C) $22,504. 
D) $52,938. 
E) $96,000. 
A) $11,600. 
B) $16,640. 
C) $22,504. 
D) $52,938. 
E) $96,000.

Question 16

The least expensive method for banks to interact with their customers is through:

Accepted Answer

A) a vendor. 
B) phone calls. 
C) the Internet. 
D) an ATM machine. 
E) a full-service teller. 
A) a vendor. 
B) phone calls. 
C) the Internet. 
D) an ATM machine. 
E) a full-service teller.

Question 17

You are going on an overseas trip, and you want to carry checks. You should purchase:

Accepted Answer

A) cashier's checks. 
B) certified checks. 
C) conditional checks. 
D) traveler's checks. 
E) guaranteed checks. 
A) cashier's checks. 
B) certified checks. 
C) conditional checks. 
D) traveler's checks. 
E) guaranteed checks.

Question 18

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding for a given nominal interest rate.

Accepted Answer

A) True 
 B)False

Question 19

It costs financial institutions more if their customers perform:

Accepted Answer

A) ATM transactions. 
B) Internet transactions. 
C) teller transactions. 
D) check transactions. 
E) electronic bill pay. 
A) ATM transactions. 
B) Internet transactions. 
C) teller transactions. 
D) check transactions. 
E) electronic bill pay.

Question 20

Funds invested in a _____ should not be withdrawn for a stated period in order to avoid an interest penalty.

Accepted Answer

A) savings account 
B) U.S. Treasury bill 
C) checking account 
D) negotiable order of withdrawal (NOW)account 
E) certificate of deposit 
A) savings account 
B) U.S. Treasury bill 
C) checking account 
D) negotiable order of withdrawal (NOW)account 
E) certificate of deposit

Negotiable order of withdrawal (NOW)accounts manage and administer the investments in a trust account or from an estate.

Cash is the only kind of liquid asset.

Debit cards are a form of electronic funds transfer system (EFTS).

Which of the following is a rented drawer in a bank's vault?

A check you wrote to buy shoes last week has not yet been approved by the bank. It is said to be:

The _____ department of a bank provides investment and estate planning advice.

You can hold an account with a mutual fund that allows you to write a limited number of checks.

In account reconciliation, one of the steps in calculating the adjusted bank balance is:

Cash management helps in personal financial planning.

The Federal Deposit Insurance Corporation (FDIC)covers consumer accounts at credit unions.

Alice lost her EFTS card and reported it missing the next day. She found that $800 had been withdrawn from her savings account. Alice's loss is equal to:

Visa and MasterCard issue debit cards linked to your checking account.

Kate tends to issue checks quite often without having a sufficient balance in her account. She should look for an account with a(n)_____ facility.

Christina's bank allows her employer to directly deposit her paycheck into her personal bank account. This service provided by Christina's bank is called a(n):

A lump-sum deposit of $8,000 left in a bank for 12 years at 9%, compounded annually, will result in an ending balance of: (Select the closest answer.)

The least expensive method for banks to interact with their customers is through:

You are going on an overseas trip, and you want to carry checks. You should purchase:

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding for a given nominal interest rate.

It costs financial institutions more if their customers perform:

Funds invested in a _____ should not be withdrawn for a stated period in order to avoid an interest penalty.

Understanding the Financial 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, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 4: Managing Your Cash and Savings

Negotiable order of withdrawal (NOW)accounts manage and administer the investments in a trust account or from an estate.

Cash is the only kind of liquid asset.

Debit cards are a form of electronic funds transfer system (EFTS).

Which of the following is a rented drawer in a bank's vault?

A check you wrote to buy shoes last week has not yet been approved by the bank. It is said to be:

The _____ department of a bank provides investment and estate planning advice.

You can hold an account with a mutual fund that allows you to write a limited number of checks.

In account reconciliation, one of the steps in calculating the adjusted bank balance is:

Cash management helps in personal financial planning.

The Federal Deposit Insurance Corporation (FDIC)covers consumer accounts at credit unions.

Alice lost her EFTS card and reported it missing the next day. She found that $800 had been withdrawn from her savings account. Alice's loss is equal to:

Visa and MasterCard issue debit cards linked to your checking account.

Kate tends to issue checks quite often without having a sufficient balance in her account. She should look for an account with a(n)_____ facility.

Christina's bank allows her employer to directly deposit her paycheck into her personal bank account. This service provided by Christina's bank is called a(n):

A lump-sum deposit of $8,000 left in a bank for 12 years at 9%, compounded annually, will result in an ending balance of: (Select the closest answer.)

The least expensive method for banks to interact with their customers is through:

You are going on an overseas trip, and you want to carry checks. You should purchase:

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding for a given nominal interest rate.

It costs financial institutions more if their customers perform:

Funds invested in a _____ should not be withdrawn for a stated period in order to avoid an interest penalty.

Understanding the Financial 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, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters