Question 1

What is the name of an investment company that raises funds from investors, pools the money, and invests in stocks or bonds?

Accepted Answer

A)  stockbrokerage firm 
B)  bond brokerage firm 
C)  mutual fund firm 
D)  securities fund firm 
E)  None of the above are correct. 
A)  stockbrokerage firm 
B)  bond brokerage firm 
C)  mutual fund firm 
D)  securities fund firm 
E)  None of the above are correct.

Question 2

For John and Sheila, money market deposit accounts may offer some advantages. Select the one or ones below that would be the most valuable to John and Sheila.

Accepted Answer

A)  They are insured. 
B)  They may have limited checking privileges. 
C)  They have relatively attractive rates of return. 
D)  They have variable market interest rates. 
E)  All of the above are advantages. 
A)  They are insured. 
B)  They may have limited checking privileges. 
C)  They have relatively attractive rates of return. 
D)  They have variable market interest rates. 
E)  All of the above are advantages.

Question 3

Of the following, which one is not an advantage of a CD as a cash management alternative?

Accepted Answer

A)  fixed interest rate, beneficial if interest rates drop 
B)  wide selection of maturities 
C)  is insured 
D)  liquidity 
E)  convenient to purchase 
A)  fixed interest rate, beneficial if interest rates drop 
B)  wide selection of maturities 
C)  is insured 
D)  liquidity 
E)  convenient to purchase

Question 4

When comparing returns on cash management investment alternatives, it is important to make sure that the rates you compare are all on the same tax basis.

Accepted Answer

A) True 
 B)False

Question 5

What is the importance of the APY?

Accepted Answer

Understanding the impact of compounding

Question 6

Barbara Stallins had her bank certify one of her personal checks as being good. Which type of check has been issued?

Accepted Answer

A)  traveler's check 
B)  certified check 
C)  cashier's check 
D)  money order 
E)  audited check 
A)  traveler's check 
B)  certified check 
C)  cashier's check 
D)  money order 
E)  audited check

Question 7

Liquid assets or funds are important to

Accepted Answer

A)  cover unplanned expenses. 
B)  prevent interrupting your long-term investments. 
C)  prevent overdrafts in checking accounts. 
D)  cover some planned expenses. 
E)  All of the above are correct. 
A)  cover unplanned expenses. 
B)  prevent interrupting your long-term investments. 
C)  prevent overdrafts in checking accounts. 
D)  cover some planned expenses. 
E)  All of the above are correct.

Question 8

Online banking makes cash management and budgeting more complicated.

Accepted Answer

A) True 
 B)False

Question 9

Once you have examined a financial institution's service and convenience you will want to ask three questions about their cash management alternatives. What are they?

Accepted Answer

‑What is the safety or risk in

Question 10

Why are liquid assets important in cash management?

Accepted Answer

Cash management begins and ends with liq

What is the name of an investment company that raises funds from investors, pools the money, and invests in stocks or bonds?

For John and Sheila, money market deposit accounts may offer some advantages. Select the one or ones below that would be the most valuable to John and Sheila.

Of the following, which one is not an advantage of a CD as a cash management alternative?

When comparing returns on cash management investment alternatives, it is important to make sure that the rates you compare are all on the same tax basis.

What is the importance of the APY?

Barbara Stallins had her bank certify one of her personal checks as being good. Which type of check has been issued?

Liquid assets or funds are important to

Online banking makes cash management and budgeting more complicated.

Once you have examined a financial institution's service and convenience you will want to ask three questions about their cash management alternatives. What are they?

Why are liquid assets important in cash management?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 5: Cash or Liquid Asset Management

What is the name of an investment company that raises funds from investors, pools the money, and invests in stocks or bonds?

For John and Sheila, money market deposit accounts may offer some advantages. Select the one or ones below that would be the most valuable to John and Sheila.

Of the following, which one is not an advantage of a CD as a cash management alternative?

When comparing returns on cash management investment alternatives, it is important to make sure that the rates you compare are all on the same tax basis.

What is the importance of the APY?

Barbara Stallins had her bank certify one of her personal checks as being good. Which type of check has been issued?

Liquid assets or funds are important to

Online banking makes cash management and budgeting more complicated.

Once you have examined a financial institution's service and convenience you will want to ask three questions about their cash management alternatives. What are they?

Why are liquid assets important in cash management?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters