Exam 21: Flexible Savings Account Options

By 2000, consumers held more in mutual fund assets than in corporate stocks.

Share accounts are offered by money-market mutual funds.

Total pension fund reserves ranked low among all household assets, just exceeding $7 trillion by the year 2009.

Automatic transfers and share drafts compete with NOWs.

Common stock is the principal financial asset held by U.S. consumers.

Depositors must receive 30 days notice of any changes that adversely affect the terms of their deposit accounts under the ____.

"For an annual fee, a professional money manager creates and manages a portfolio of assets for the consumer" best describes a:

The character of the borrower is the single most important issue in the decision to grant or deny a consumer loan.

U.S. households borrowed nearly $667 billion in 2009 and by the end of the year owed more than $14 trillion to various lending institutions.

Eligibility for filing under the new bankruptcy code is subject to a means test, which calls for determining the applicant's monthly average income and comparing that figure to the median income level in:

In order to secure a loan, a rule of thumb used by many loan officers holds that the consumer's debt should not exceed _____ of the family's monthly or annual gross income.

The Financial Institutions Reform, Recovery and Enforcement Act requires public disclosure of a bank's performance rating in meeting the credit needs of its local community.

U.S. household debt-to-income ratios rose to over 80 percent in the mid-1990s.

Depositors must receive credit for local checks they deposit after two business days.

Consumer loans usually carry less risk than most other kinds of loans.

According to federal law, filing for bankruptcy under Chapter 13 normally completely discharges all of a household's unsecured debts.

Wage earners and salaried individuals may set up an IRA account to set aside a portion of their wages for retirement.

In each situation listed below, identify whether a consumer lender would evaluate an individual's request to borrow money as positive and or negative, and explain why. a. The borrower lives near the lender's home office and has a telephone. b. The borrower holds approximately $8,000 in shares in mutual funds and corporate bonds. c. The borrower has a $50,000 term life insurance policy through her place of work. d. The borrower has no health insurance plan because her employer does not offer one.

Convenience users of credit cards are the most profitable type of customer for a credit card issuing firm.

Prior to notification of loss or theft the credit card holder is responsible for a maximum of _____ in authorized charges.