Question 1

Banks must notify customers ____________ days before lowering rates on deposit accounts or certificates of deposit. ​

Accepted Answer

A) 30 
B) 60 
C) 15 
D) 45 
A) 30 
B) 60 
C) 15 
D) 45

Question 2

Low interest rates that have persisted since the financial crisis of 2008-2009 have been beneficial to:

Accepted Answer

A) students. 
B) retirees. 
C) banks. 
D) savers. 
E) share investors. 
A) students. 
B) retirees. 
C) banks. 
D) savers. 
E) share investors.

Question 3

Harry received a scholarship of $2,000.He plans to invest this money for five years at 8%,compounded annually.If he accomplishes this,Harry will have an ending balance of: (Use time value tables or a financial calculator.Select the closest answer.)

Accepted Answer

A) $2,160. 
B) $2,520. 
C) $2,608. 
D) $2,938. 
E) $3162. 
A) $2,160. 
B) $2,520. 
C) $2,608. 
D) $2,938. 
E) $3162.

Question 4

Cash and near-cash resources are known as _____.

Accepted Answer

A) liquid assets 
B) long-lived assets 
C) noncurrent assets 
D) fixed assets 
E) noncash assets 
A) liquid assets 
B) long-lived assets 
C) noncurrent assets 
D) fixed assets 
E) noncash assets

Question 5

When doing an account reconciliation,interest earned on your account should be:

Accepted Answer

A) deducted from your checkbook ledger. 
B) added to your checkbook ledger. 
C) ignored because the bank has already recorded it. 
D) listed as outstanding. 
E) compared to your interest calculations. 
A) deducted from your checkbook ledger. 
B) added to your checkbook ledger. 
C) ignored because the bank has already recorded it. 
D) listed as outstanding. 
E) compared to your interest calculations.

Question 6

Daily balance requirements are an important criteria while comparing different checking accounts offered by a bank.

Accepted Answer

A) True 
 B)False

Question 7

The more frequently a bank compounds interest,_____ for a given nominal rate will be.

Accepted Answer

A) the higher the stated interest rate 
B) the lower the inflation rate 
C) the higher the effective rate 
D) the lower the yield rate 
E) the higher the normal rate 
A) the higher the stated interest rate 
B) the lower the inflation rate 
C) the higher the effective rate 
D) the lower the yield rate 
E) the higher the normal rate

Question 8

Interest earned for a period should be added to the ending balance shown in your checkbook while reconciling your account.

Accepted Answer

A) True 
 B)False

Question 9

The percentage of ____________ out of disposable income has decreased due to low interest rates and has impacted the investment choices of individuals. ​

Accepted Answer

A) savings 
B) expenditure 
C) taxable income 
D) insurance 
A) savings 
B) expenditure 
C) taxable income 
D) insurance

Question 10

A ____________ account is called a demand deposit account. ​

Accepted Answer

A) checking 
B) savings 
C) term deposit 
D) time deposit 
A) checking 
B) savings 
C) term deposit 
D) time deposit

Question 11

Which of the following is an interest-bearing checking account?

Accepted Answer

A) Certificate of deposit 
B) Treasury bill 
C) Negotiable order of withdrawal (NOW)account 
D) Series EE U.S.savings bond 
E) Regular checking account 
A) Certificate of deposit 
B) Treasury bill 
C) Negotiable order of withdrawal (NOW)account 
D) Series EE U.S.savings bond 
E) Regular checking account

Question 12

Which of the following savings vehicles is free of state and local income taxes?

Accepted Answer

A) Certificates of deposit 
B) Money market mutual funds 
C) Time deposits 
D) Money market deposit accounts 
E) I savings bonds 
A) Certificates of deposit 
B) Money market mutual funds 
C) Time deposits 
D) Money market deposit accounts 
E) I savings bonds

Question 13

Low interest rates result in:

Accepted Answer

A) facilitating a greater supply of money for borrowers. 
B) reducing the cost of financing the federal budget deficit. 
C) encouraging a higher savings rate. 
D) bringing more investment avenues. 
E) improving the standard of living. 
A) facilitating a greater supply of money for borrowers. 
B) reducing the cost of financing the federal budget deficit. 
C) encouraging a higher savings rate. 
D) bringing more investment avenues. 
E) improving the standard of living.

Question 14

A check you wrote to buy shoes last week has not yet been approved by the bank.It is said to be:

Accepted Answer

A) outstanding. 
B) credited. 
C) endorsed. 
D) certified. 
E) subtracted. 
A) outstanding. 
B) credited. 
C) endorsed. 
D) certified. 
E) subtracted.

Question 15

Extremely low interest rates favor investors and boost the incentive to save.

Accepted Answer

A) True 
 B)False

Question 16

You are buying a large amount of merchandise through the mail from a dealer several hundred miles from you with whom you have never dealt before.The dealer will probably require that you pay him with ____________. ​

Accepted Answer

A) a certified check 
B) a credit card 
C) overdraft protection 
D) cash 
A) a certified check 
B) a credit card 
C) overdraft protection 
D) cash

Question 17

Whenever you write a check or make a deposit,an entry should be made in your:

Accepted Answer

A) deposit slip. 
B) checkbook ledger. 
C) overdraft booklet. 
D) balance sheet. 
E) personal check. 
A) deposit slip. 
B) checkbook ledger. 
C) overdraft booklet. 
D) balance sheet. 
E) personal check.

Question 18

Factors that typically influence the choice of where to maintain a checking account are:

Accepted Answer

A) convenience,inflation,tax rates,and cost. 
B) convenience,inflation,and services. 
C) cost,inflation,tax rates,and services. 
D) convenience,services,and cost. 
E) convenience,services,GDP,and cost. 
A) convenience,inflation,tax rates,and cost. 
B) convenience,inflation,and services. 
C) cost,inflation,tax rates,and services. 
D) convenience,services,and cost. 
E) convenience,services,GDP,and cost.

Question 19

Compared to other depository financial institutions,credit unions:

Accepted Answer

A) are more beneficial to all kinds of consumers. 
B) pay lower interest on savings to their members. 
C) have a greater number of account holders. 
D) have a greater number of branches. 
E) charge lower rates on loans to their members. 
A) are more beneficial to all kinds of consumers. 
B) pay lower interest on savings to their members. 
C) have a greater number of account holders. 
D) have a greater number of branches. 
E) charge lower rates on loans to their members.

Question 20

Share draft accounts are offered by:

Accepted Answer

A) commercial banks. 
B) savings and loan associations. 
C) mutual savings banks. 
D) credit unions. 
E) insurance companies. 
A) commercial banks. 
B) savings and loan associations. 
C) mutual savings banks. 
D) credit unions. 
E) insurance companies.

Banks must notify customers ____________ days before lowering rates on deposit accounts or certificates of deposit.

Low interest rates that have persisted since the financial crisis of 2008-2009 have been beneficial to:

Harry received a scholarship of $2,000.He plans to invest this money for five years at 8%,compounded annually.If he accomplishes this,Harry will have an ending balance of: (Use time value tables or a financial calculator.Select the closest answer.)

Cash and near-cash resources are known as _____.

When doing an account reconciliation,interest earned on your account should be:

Daily balance requirements are an important criteria while comparing different checking accounts offered by a bank.

The more frequently a bank compounds interest,_____ for a given nominal rate will be.

Interest earned for a period should be added to the ending balance shown in your checkbook while reconciling your account.

The percentage of ____________ out of disposable income has decreased due to low interest rates and has impacted the investment choices of individuals.

A ____________ account is called a demand deposit account.

Which of the following is an interest-bearing checking account?

Which of the following savings vehicles is free of state and local income taxes?

Low interest rates result in:

A check you wrote to buy shoes last week has not yet been approved by the bank.It is said to be:

Extremely low interest rates favor investors and boost the incentive to save.

You are buying a large amount of merchandise through the mail from a dealer several hundred miles from you with whom you have never dealt before.The dealer will probably require that you pay him with ____________.

Whenever you write a check or make a deposit,an entry should be made in your:

Factors that typically influence the choice of where to maintain a checking account are:

Compared to other depository financial institutions,credit unions:

Share draft accounts are offered by:

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 4: Managing Your Cash and Savings

Banks must notify customers ____________ days before lowering rates on deposit accounts or certificates of deposit. ​

Low interest rates that have persisted since the financial crisis of 2008-2009 have been beneficial to:

Harry received a scholarship of $2,000.He plans to invest this money for five years at 8%,compounded annually.If he accomplishes this,Harry will have an ending balance of: (Use time value tables or a financial calculator.Select the closest answer.)

Cash and near-cash resources are known as _____.

When doing an account reconciliation,interest earned on your account should be:

Daily balance requirements are an important criteria while comparing different checking accounts offered by a bank.

The more frequently a bank compounds interest,_____ for a given nominal rate will be.

Interest earned for a period should be added to the ending balance shown in your checkbook while reconciling your account.

The percentage of ____________ out of disposable income has decreased due to low interest rates and has impacted the investment choices of individuals. ​

A ____________ account is called a demand deposit account. ​

Which of the following is an interest-bearing checking account?

Which of the following savings vehicles is free of state and local income taxes?

Low interest rates result in:

A check you wrote to buy shoes last week has not yet been approved by the bank.It is said to be:

Extremely low interest rates favor investors and boost the incentive to save.

You are buying a large amount of merchandise through the mail from a dealer several hundred miles from you with whom you have never dealt before.The dealer will probably require that you pay him with ____________. ​

Whenever you write a check or make a deposit,an entry should be made in your:

Factors that typically influence the choice of where to maintain a checking account are:

Compared to other depository financial institutions,credit unions:

Share draft accounts are offered by:

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Banks must notify customers ____________ days before lowering rates on deposit accounts or certificates of deposit.

The percentage of ____________ out of disposable income has decreased due to low interest rates and has impacted the investment choices of individuals.

A ____________ account is called a demand deposit account.

You are buying a large amount of merchandise through the mail from a dealer several hundred miles from you with whom you have never dealt before.The dealer will probably require that you pay him with ____________.