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.

An asset management account combines several financial services for a single fee.

To avoid high fees for loans,a person should avoid borrowing from a:

Determine the rate of return (yield)on a savings account in which you deposited $300.00 and earned $6.00 in interest after one year.

The Expedited Funds Availability Act requires that funds be available to depositors:

Which of the following is a way to reduce ATM surcharges?

When preparing a bank reconciliation,interest earned on your checking account is added to the bank statement balance.

Checking accounts are frequently referred to as ____________ deposits.

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?

The storage of funds for future use is a purpose of ____________ services.

Purchasing a new CD upon maturity of the current CD is commonly referred to as:

Based on the following information,what amount would be subtracted from the bank balance side of the checking account reconciliation? Service charge $12;Outstanding checks $145;Interest $3.50;Deposit in transit $80

Brad Kellogg maintains a monthly balance in his checking account of approximately $150,writes about 25 checks a month,and makes three deposits each month.How would Brad decide which one of the following checking accounts he should use?

A ____________ endorsement would be used if a person is presenting a check in order to obtain cash.

The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution.Suzanne has $200,000 in an individual account and $424,000 in a joint account with her husband,Ted.How much of Suzanne's money is not covered by FDIC insurance?

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?

Which CD starts with a higher rate,has a long time to maturity,and can be retired by the bank after a set time period?

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

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?

A pawnshop with a monthly interest rate of 2.75 percent would have an annual interest rate of ____ percent.Ignore compounding.