Question 1

A cash advance 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 2

A cashier's cheque 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 3

What is a drawback of a money market fund?

Accepted Answer

A) Low rate of return 
B) Minimum deposit 
C) Service charges 
D) High minimum balance required 
E) Not guaranteed 
A) Low rate of return 
B) Minimum deposit 
C) Service charges 
D) High minimum balance required 
E) Not guaranteed

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which of these is not a characteristic of the compound interest bond?

Accepted Answer

A) various purchase options 
B) denominations of $100 up to $10,000 
C) interest paid on November 1 of each year 
D) can be purchased by cash 
E) cashable at any time for their face value 
A) various purchase options 
B) denominations of $100 up to $10,000 
C) interest paid on November 1 of each year 
D) can be purchased by cash 
E) cashable at any time for their face value

Question 6

Short term financial servies for short term needs include which one of the following?

Accepted Answer

A) Cheque cashing 
B) Cash loans for autos 
C) RRSP's 
D) Insurance 
E) Budget counselling 
A) Cheque cashing 
B) Cash loans for autos 
C) RRSP's 
D) Insurance 
E) Budget counselling

Question 7

A restrictive endorsement will usually include the words "for deposit only."

Accepted Answer

A) True 
 B)False

Question 8

The rate of return on a savings account is also referred to as

Accepted Answer

A) liquidity. 
B) compounding. 
C) asset management. 
D) insolvency. 
E) yield. 
A) liquidity. 
B) compounding. 
C) asset management. 
D) insolvency. 
E) yield.

Question 9

Comparison of earnings for different savings plans can best be accomplished using the

Accepted Answer

A) discounted present value. 
B) compounded rate of return. 
C) net present value. 
D) effective annual rate. 
E) after-tax rate of return. 
A) discounted present value. 
B) compounded rate of return. 
C) net present value. 
D) effective annual rate. 
E) after-tax rate of return.

Question 10

A "free" chequing account with a minimum balance of $500 has no opportunity cost.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) Time savings 
B) No paper trail 
C) Email notices of due dates 
D) Phishing 
E) Convenience 
A) Time savings 
B) No paper trail 
C) Email notices of due dates 
D) Phishing 
E) Convenience

Question 12

A $100 savings account that earns $5 interest in a year has a yield of ____________ percent.

Accepted Answer

A) 6 
B) 5 
C) 4.75 
D) 3.75 
E) 6.5 
A) 6 
B) 5 
C) 4.75 
D) 3.75 
E) 6.5

Question 13

Briana Legett expects interest rates to decline over the next few months.To maximize her earnings she should use a(n):

Accepted Answer

A) regular savings account. 
B) interest-bearing checking account. 
C) five-year certificate of deposit. 
D) six-month certificate of deposit. 
E) money market fund 
A) regular savings account. 
B) interest-bearing checking account. 
C) five-year certificate of deposit. 
D) six-month certificate of deposit. 
E) money market fund

Question 14

The yield on a savings account is also referred to as

Accepted Answer

A) liquidity. 
B) compounding. 
C) asset management. 
D) insolvency. 
E) rate of return. 
A) liquidity. 
B) compounding. 
C) asset management. 
D) insolvency. 
E) rate of return.

Question 15

A "free" chequing account with a minimum balance of $500 has an opportunity cost of lost interest.

Accepted Answer

A) True 
 B)False

Question 16

What is a drawback of a Guaranteed Investment Certificate?

Accepted Answer

A) Low rate of return 
B) Minimum deposit 
C) Service charges 
D) High minimum balance required 
E) Not guaranteed 
A) Low rate of return 
B) Minimum deposit 
C) Service charges 
D) High minimum balance required 
E) Not guaranteed

Question 17

Robert expects interest rates to rise over the next few months.To maximize his earnings he should use a:

Accepted Answer

A) regular savings account. 
B) five year GIC. 
C) five-year certificate of deposit. 
D) six-month certificate of deposit. 
E) money market fund 
A) regular savings account. 
B) five year GIC. 
C) five-year certificate of deposit. 
D) six-month certificate of deposit. 
E) money market fund

Question 18

The convenience of using a financial institution with 24-hour banking frequently requires a trade-off with

Accepted Answer

A) safety. 
B) personal service. 
C) growth of savings. 
D) liquidity. 
E) a lower rate of return. 
A) safety. 
B) personal service. 
C) growth of savings. 
D) liquidity. 
E) a lower rate of return.

Question 19

Foreign currency exchange 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 20

The business hours and location of a financial institution refer to the ____________ factor of selecting a financial institution.

Accepted Answer

A) safety 
B) cost 
C) compounding 
D) liquidity 
E) convenience 
A) safety 
B) cost 
C) compounding 
D) liquidity 
E) convenience

A cash advance is what type of short term financial service?

A cashier's cheque is what type of short term financial service?

What is a drawback of a money market fund?

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

Which of these is not a characteristic of the compound interest bond?

Short term financial servies for short term needs include which one of the following?

A restrictive endorsement will usually include the words "for deposit only."

The rate of return on a savings account is also referred to as

Comparison of earnings for different savings plans can best be accomplished using the

A "free" chequing account with a minimum balance of $500 has no opportunity cost.

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

A $100 savings account that earns $5 interest in a year has a yield of ____________ percent.

Briana Legett expects interest rates to decline over the next few months.To maximize her earnings she should use a(n):

The yield on a savings account is also referred to as

A "free" chequing account with a minimum balance of $500 has an opportunity cost of lost interest.

What is a drawback of a Guaranteed Investment Certificate?

Robert expects interest rates to rise over the next few months.To maximize his earnings he should use a:

The convenience of using a financial institution with 24-hour banking frequently requires a trade-off with

Foreign currency exchange is what type of short term financial service?

The business hours and location of a financial institution refer to the ____________ factor of selecting a financial institution.

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

A cash advance is what type of short term financial service?

A cashier's cheque is what type of short term financial service?

What is a drawback of a money market fund?

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

Which of these is not a characteristic of the compound interest bond?

Short term financial servies for short term needs include which one of the following?

A restrictive endorsement will usually include the words "for deposit only."

The rate of return on a savings account is also referred to as

Comparison of earnings for different savings plans can best be accomplished using the

A "free" chequing account with a minimum balance of $500 has no opportunity cost.

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

A $100 savings account that earns $5 interest in a year has a yield of ____________ percent.

Briana Legett expects interest rates to decline over the next few months.To maximize her earnings she should use a(n):

The yield on a savings account is also referred to as

A "free" chequing account with a minimum balance of $500 has an opportunity cost of lost interest.

What is a drawback of a Guaranteed Investment Certificate?

Robert expects interest rates to rise over the next few months.To maximize his earnings he should use a:

The convenience of using a financial institution with 24-hour banking frequently requires a trade-off with

Foreign currency exchange is what type of short term financial service?

The business hours and location of a financial institution refer to the ____________ factor of selecting a financial institution.

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