Exam 4: Managing Your Cash and Savings

Funds invested in a _____ should not be withdrawn for a stated period in order to avoid an interest penalty.

Higher interest rates on certificates of deposit are associated with:

Which of the following would be an appropriate savings vehicle if you plan to use your savings within a year and expect interest rates to fall over the next few months?

Mike has $450 in his checking account when his ATM card and PIN are stolen.If Mike notifies his bank within two business days after he discovers the card missing,his loss is limited to _____.

One can hold a credit card issued by a stock brokerage firm.

Which of the following is a rented drawer in a bank's vault?

When a savings bank is a mutual association,it is owned by the:

Laura has a $100,000 balance in her checking account at Best Bank,and she has purchased a certificate of deposit (CD)worth $50,000 issued by Best Bank.Laura is also thinking of investing $200,000 either in Best Bank or in Trust Bank.Which of the following is a suitable strategy for Laura if she wants her deposits to be completely insured?

Nondepository institutions are referred to as banks.

The _____ department of a bank provides investment and estate planning advice.

Keeping valuables in a safe-deposit box may reduce your homeowner's insurance premiums by eliminating the "riders" that are often needed to cover such items.

Maggie wants to open a checking account that will be the least expensive,given her normal financial transactions.She typically writes 15 checks a month and uses an ATM 35 times a month.Her monthly minimum checking balances falls to about $350 on an average.Which of the following accounts would be least expensive for Maggie? (Show all your work.) Account A: No monthly fee is charged if a minimum balance of at least $300 is maintained. A $5.00 fee is charged in any month the minimum balance falls below $300. An ATM fee of $0.10 per transaction is charged on all transactions. Account B: No monthly fee is charged if a minimum balance of at least $500 is maintained. A $3.00 fee plus $0.10/check is charged in any month the minimum balance falls below $500. There is no ATM fee on transactions.

The interest earned on an individual's _____ is free of state and local income taxes.

Cash management helps in personal financial planning.

Debit cards are a form of electronic funds transfer system (EFTS).

Negotiable order of withdrawal (NOW)accounts manage and administer the investments in a trust account or from an estate.

Individuals prefer to invest their savings in stocks rather than traditional instruments like Treasury bonds because of ____________. ​

John Anderson deposited $10,000 in a certificate of deposit (CD)for 3 years at 5%.At maturity,it will be worth: (Use time value tables or a financial calculator.Select the closest answer.)

A lump-sum deposit of $8,000 left in a bank for 12 years at 9%,compounded annually,will result in an ending balance of: (Select the closest answer.)

Money market mutual funds: