Exam 5: Financial Services: Savings Plans and Payment Accounts

A person borrows $200 from a payday loan company, and pays $10 interest for two weeks. This would result in an annual interest rate of approximately ___ percent. Ignore compounding.

Which one of the following financial service providers should be avoided because the loans they offer are considered expensive and high-risk?

A personal check with guaranteed payment is called a:

Which is a CD that offers a higher rate for every six months you are invested?

A higher rate of return would result from a savings account that had which of the following compounding frequencies?

The money market fund offered by investment companies is a relatively liquid financial service.

A limit on the amount you must keep on deposit in order to earn interest or avoid a service charge is an example of a(n):

A trust has the purpose of:

Josh earned $120 on $1500 invested in a high yield money market account. He is taxed at 28% of his earnings. What is the effective yield on his investment?

What is the term used to refer to the rate financial institutions are charged to borrow funds from Federal Reserve Banks?

The most frequent users of payday loans are workers who have become trapped by debts or poor financial decisions.

In the bank reconciliation process, service fees should be:

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

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

All-in-one accounts may be used by financial institutions to simplify the maze of financial services and to attract customers.

Higher returns on savings will usually result in less liquidity.

Evan Nolan is a college graduate who has just landed a great job. He feels it is time for him to start saving a portion of his earnings. What factors would you recommend he consider when evaluating and comparing different savings plans?

A $200 savings account that earns $13 interest in a year has a yield of _______ percent.

What is the rate that the Federal Reserve charges banks for loans called?

David Wynn gets a personal loan from his credit union for $1,000. David will make monthly payments $85.15 over the next year to repay the loan. What type of financial service is David using?