Exam 5: Managing Checking and Savings Accounts

Which type of bank agreement will result in the lowest fees?

Savers should select an institution that calculates interest

A grace period is the time period in days during which deposits or withdrawals can be made and still earn the same interest as other savings from a given day of the interest period.

Time deposits are savings that are expected to remain on deposit in a financial institution for an extended period.

The regulator of commercial banks and saving banks is the

Institutions usually have a rule requiring that time deposit account holders give 30 to 60 days notice for withdrawals,although this restriction is seldom enforced.

Most homeowner's and renter's insurance policies cover your liability for theft of debit cards but not credit cards.

A person who is a joint owner of an ____ account should understand that his/her share of the assets in the account are distributed to the heirs of the deceased according to the terms of his/her will.

One should accumulate enough savings to cover living expenses for six to nine months.

Time deposits specify a period that the savings must be left on deposit,such as six months or three years.

Which of these is a reason many people say they cannot save?

Funds on deposit in a savings account are considered demand deposits.

Monetary asset management includes setting money aside in a savings account for use later when spending or investing.

When you sign up for electronic banking services,the depository institution must inform you of your rights and responsibilities in a written disclosure statement.

Funds on deposit in a savings account are considered time deposits rather than demand deposits.

Periodically,you should conduct an account reconciliation in which you compare your records with your bank's records.

In general,the shorter the maturity time on a certificate of deposit,the higher the rate of interest that will be paid.

Money market mutual funds that buy only U.S.government securities are virtually risk-free.

Acceptance for a lifeline banking account is dependent on one's income and net worth.

Interest rates on longer-term CDs are usually higher than the comparable rates on shorter-term instruments.