Question 1

The increase in purchasing power of an investment is not reflected in its real rate of return.

Accepted Answer

A) True 
 B)False

Question 2

Time deposits consist of

Accepted Answer

A) savings accounts. 
B) loans and charge accounts. 
C) chequing accounts. 
D) government securities. 
E) profits earned by a financial institution. 
A) savings accounts. 
B) loans and charge accounts. 
C) chequing accounts. 
D) government securities. 
E) profits earned by a financial institution.

Question 3

Which of the flowing is not a concern of online banking?

Accepted Answer

A) Time savings 
B) Costly fees for ATM's 
C) Difficulty depositing cash 
D) Phishing 
E) Overspending 
A) Time savings 
B) Costly fees for ATM's 
C) Difficulty depositing cash 
D) Phishing 
E) Overspending

Question 4

Activity accounts are designed for people who write many cheques each month.

Accepted Answer

A) True 
 B)False

Question 5

When interest rates are rising, a person would be best served by

Accepted Answer

A) short term loans 
B) long-term savings instruments. 
C) short-term savings instruments. 
D) variable-rate loans. 
E) short-term loans and long-term savings instruments. 
A) short term loans 
B) long-term savings instruments. 
C) short-term savings instruments. 
D) variable-rate loans. 
E) short-term loans and long-term savings instruments.

Question 6

Savings compounded ____________ would have the lowest effective yield

Accepted Answer

A) monthly 
B) annually 
C) semi-annually 
D) daily 
E) weekly 
A) monthly 
B) annually 
C) semi-annually 
D) daily 
E) weekly

Question 7

A regular savings account usually offers a higher rate of return to savers than other savings plans.

Accepted Answer

A) True 
 B)False

Question 8

A saver will usually earn the highest rate with which of the following types of savings plans?

Accepted Answer

A) Guaranteed Investment Certificates 
B) club account 
C) passbook account 
D) share account 
E) NOW account 
A) Guaranteed Investment Certificates 
B) club account 
C) passbook account 
D) share account 
E) NOW account

Question 9

A financial institution organized for the main purpose of providing loans to purchase homes is a

Accepted Answer

A) mortgage and loan company. 
B) mutual savings bank. 
C) consumer finance company. 
D) credit union 
E) commercial bank. 
A) mortgage and loan company. 
B) mutual savings bank. 
C) consumer finance company. 
D) credit union 
E) commercial bank.

Question 10

An advantage credit unions may have over other financial institutions is

Accepted Answer

A) interest-bearing chequing accounts. 
B) flexible-rate loans 
C) low-cost personal loans. 
D) credit cards. 
E) variable-rate savings plans. 
A) interest-bearing chequing accounts. 
B) flexible-rate loans 
C) low-cost personal loans. 
D) credit cards. 
E) variable-rate savings plans.

Question 11

A money market account is what type of short term financial service?

Accepted Answer

A) Savings 
B) Chequing 
C) Credit Card 
D) Cash availability 
E) Investment 
A) Savings 
B) Chequing 
C) Credit Card 
D) Cash availability 
E) Investment

Question 12

A trust is a safe place for people to make large deposits for maximum security

Accepted Answer

A) True 
 B)False

Question 13

Mortgage and loan companies specialize principally in home mortgages and long-term loans.

Accepted Answer

A) True 
 B)False

Question 14

If the annual rate is 2% and inflation is 3%, then the approximate real rate of return is:

Accepted Answer

A) 5.00% 
B) 3.00% 
C) 1.00% 
D) - 1.0% 
E) 0% 
A) 5.00% 
B) 3.00% 
C) 1.00% 
D) - 1.0% 
E) 0%

Question 15

An all-purpose account that provides several services is a(n):

Accepted Answer

A) NOW account. 
B) asset management account. 
C) EFT account. 
D) mutual fund. 
E) money market account. 
A) NOW account. 
B) asset management account. 
C) EFT account. 
D) mutual fund. 
E) money market account.

Question 16

Brokerage services are what type of long term financial service?

Accepted Answer

A) Savings 
B) Chequing 
C) Credit Card 
D) Cash availability 
E) Investment 
A) Savings 
B) Chequing 
C) Credit Card 
D) Cash availability 
E) Investment

Question 17

Direct deposit and automatic monthly payments are features of

Accepted Answer

A) savings accounts. 
B) chequing accounts. 
C) electronic banking. 
D) investments. 
E) reserve funds. 
A) savings accounts. 
B) chequing accounts. 
C) electronic banking. 
D) investments. 
E) reserve funds.

Question 18

Credit unions frequently offer lower loan rates than other financial institutions.

Accepted Answer

A) True 
 B)False

Question 19

If the annual rate is 8%, and the interest is compounded quarterly, what is the effective annual rate?

Accepted Answer

A) 8.00% 
B) 10.25% 
C) 10.38% 
D) 7.85% 
E) 8.24% 
A) 8.00% 
B) 10.25% 
C) 10.38% 
D) 7.85% 
E) 8.24%

Question 20

If the annual rate is 8%, and the interest is compounded monthly, what is the effective annual rate?

Accepted Answer

A) 8.00% 
B) 10.25% 
C) 10.38% 
D) 7.85% 
E) 8.30% 
A) 8.00% 
B) 10.25% 
C) 10.38% 
D) 7.85% 
E) 8.30%

The increase in purchasing power of an investment is not reflected in its real rate of return.

Time deposits consist of

Which of the flowing is not a concern of online banking?

Activity accounts are designed for people who write many cheques each month.

When interest rates are rising, a person would be best served by

Savings compounded ____________ would have the lowest effective yield

A regular savings account usually offers a higher rate of return to savers than other savings plans.

A saver will usually earn the highest rate with which of the following types of savings plans?

A financial institution organized for the main purpose of providing loans to purchase homes is a

An advantage credit unions may have over other financial institutions is

A money market account is what type of short term financial service?

A trust is a safe place for people to make large deposits for maximum security

Mortgage and loan companies specialize principally in home mortgages and long-term loans.

If the annual rate is 2% and inflation is 3%, then the approximate real rate of return is:

An all-purpose account that provides several services is a(n):

Brokerage services are what type of long term financial service?

Direct deposit and automatic monthly payments are features of

Credit unions frequently offer lower loan rates than other financial institutions.

If the annual rate is 8%, and the interest is compounded quarterly, what is the effective annual rate?

If the annual rate is 8%, and the interest is compounded monthly, what is the effective annual rate?

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 4: Banking Services of Financial Institutions

The increase in purchasing power of an investment is not reflected in its real rate of return.

Time deposits consist of

Which of the flowing is not a concern of online banking?

Activity accounts are designed for people who write many cheques each month.

When interest rates are rising, a person would be best served by

Savings compounded ____________ would have the lowest effective yield

A regular savings account usually offers a higher rate of return to savers than other savings plans.

A saver will usually earn the highest rate with which of the following types of savings plans?

A financial institution organized for the main purpose of providing loans to purchase homes is a

An advantage credit unions may have over other financial institutions is

A money market account is what type of short term financial service?

A trust is a safe place for people to make large deposits for maximum security

Mortgage and loan companies specialize principally in home mortgages and long-term loans.

If the annual rate is 2% and inflation is 3%, then the approximate real rate of return is:

An all-purpose account that provides several services is a(n):

Brokerage services are what type of long term financial service?

Direct deposit and automatic monthly payments are features of

Credit unions frequently offer lower loan rates than other financial institutions.

If the annual rate is 8%, and the interest is compounded quarterly, what is the effective annual rate?

If the annual rate is 8%, and the interest is compounded monthly, what is the effective annual rate?

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters