Question 1

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 2

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 3

The purpose of a "special" endorsement is to

Accepted Answer

A)  cash a cheque. 
B)  deposit a cheque. 
C)  transfer a cheque to another person. 
D)  withdraw cash from your account. 
E)  reduce the charge for service fees. 
A)  cash a cheque. 
B)  deposit a cheque. 
C)  transfer a cheque to another person. 
D)  withdraw cash from your account. 
E)  reduce the charge for service fees.

Question 4

Store credit cards usually charge a higher interest rate than a bank credit card.

Accepted Answer

A) True 
 B)False

Question 5

The funds deposited in a chequing account can be restricted for use by

Accepted Answer

A)  a holding period. 
B)  outstanding cheques. 
C)  interest earned. 
D)  service charges. 
E)  electronic banking. 
A)  a holding period. 
B)  outstanding cheques. 
C)  interest earned. 
D)  service charges. 
E)  electronic banking.

Question 6

What are the main types of financial institutions used by consumers?

Accepted Answer

Deposit-type institutions include charte

Question 7

Store credit cards usually charge a lower interest rate than a bank credit card.

Accepted Answer

A) True 
 B)False

Question 8

An advantage of Canada Savings Bonds is

Accepted Answer

A)  interest earned is exempt from federal income taxes. 
B)  interest earned is deferred for federal tax purposes. 
C)  a guaranteed rate of return. 
D)  they can be converted to other types of investments. 
E)  they are sold twice a year. 
A)  interest earned is exempt from federal income taxes. 
B)  interest earned is deferred for federal tax purposes. 
C)  a guaranteed rate of return. 
D)  they can be converted to other types of investments. 
E)  they are sold twice a year.

Question 9

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 10

Based on the following information, what amount would be SUBTRACTED from the BANK BALANCE side of a chequing account reconciliation? Service charge $6, Outstanding cheques $260, Interest $3. 00, Deposit in transit $65

Accepted Answer

A)  $260 
B)  $65 
C)  $71 
D)  $68 
E)  $266 
A)  $260 
B)  $65 
C)  $71 
D)  $68 
E)  $266

Question 11

If you think interest rates will increase, you should consider investing your money in a longer-term GIC.

Accepted Answer

A) True 
 B)False

Question 12

Savings compounded ____________ would have the highest effective yield

Accepted Answer

A)  monthly 
B)  annually 
C)  semi-annually 
D)  daily 
E)  weekly 
A)  monthly 
B)  annually 
C)  semi-annually 
D)  daily 
E)  weekly

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The increase in purchasing power of an investment is not reflected in its real rate of return.

Accepted Answer

A) True 
 B)False

Question 15

All financial institutions are able to process customer deposit and withdrawal transactions.

Accepted Answer

A) True 
 B)False

Question 16

To avoid high fees for loans, a person should not borrow from a

Accepted Answer

A)  credit union. 
B)  savings and loan association. 
C)  pawnshop. 
D)  commercial bank. 
E)  mutual savings bank. 
A)  credit union. 
B)  savings and loan association. 
C)  pawnshop. 
D)  commercial bank. 
E)  mutual savings bank.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The "prime" rate is ___________________________.

Accepted Answer

A)  The lending rate banks charge their most creditworthy clients 
B)  The yield on 91-day treasury bills 
C)  The yield on 30-year government bonds 
D)  The yield on 1-year government bonds 
E)  The yield on corporate bonds 
A)  The lending rate banks charge their most creditworthy clients 
B)  The yield on 91-day treasury bills 
C)  The yield on 30-year government bonds 
D)  The yield on 1-year government bonds 
E)  The yield on corporate bonds

Question 19

A financial institution organized for the main purpose of providing loans to purchase homes is a

Accepted Answer

A)  mortgage and loan company. 
B)  mutual savings bank. 
C)  consumer finance company. 
D)  credit union 
E)  commercial bank. 
A)  mortgage and loan company. 
B)  mutual savings bank. 
C)  consumer finance company. 
D)  credit union 
E)  commercial bank.

Question 20

List the 4 chequing account selection features discussed in the text.

Accepted Answer

Restrictions, fees a

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

The yield on a savings account is also referred to as

The purpose of a "special" endorsement is to

Store credit cards usually charge a higher interest rate than a bank credit card.

The funds deposited in a chequing account can be restricted for use by

What are the main types of financial institutions used by consumers?

Store credit cards usually charge a lower interest rate than a bank credit card.

An advantage of Canada Savings Bonds is

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

Based on the following information, what amount would be SUBTRACTED from the BANK BALANCE side of a chequing account reconciliation? Service charge $6, Outstanding cheques $260, Interest $3. 00, Deposit in transit $65

If you think interest rates will increase, you should consider investing your money in a longer-term GIC.

Savings compounded ____________ would have the highest effective yield

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

The increase in purchasing power of an investment is not reflected in its real rate of return.

All financial institutions are able to process customer deposit and withdrawal transactions.

To avoid high fees for loans, a person should not borrow from a

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

The "prime" rate is ___________________________.

A financial institution organized for the main purpose of providing loans to purchase homes is a

List the 4 chequing account selection features discussed in the text.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Introduction to Consumer Credit

Choosing a Source 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: The Banking Services of Financial Institutions

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

The yield on a savings account is also referred to as

The purpose of a "special" endorsement is to

Store credit cards usually charge a higher interest rate than a bank credit card.

The funds deposited in a chequing account can be restricted for use by

What are the main types of financial institutions used by consumers?

Store credit cards usually charge a lower interest rate than a bank credit card.

An advantage of Canada Savings Bonds is

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

Based on the following information, what amount would be SUBTRACTED from the BANK BALANCE side of a chequing account reconciliation? Service charge $6, Outstanding cheques $260, Interest $3. 00, Deposit in transit $65

If you think interest rates will increase, you should consider investing your money in a longer-term GIC.

Savings compounded ____________ would have the highest effective yield

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

The increase in purchasing power of an investment is not reflected in its real rate of return.

All financial institutions are able to process customer deposit and withdrawal transactions.

To avoid high fees for loans, a person should not borrow from a

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

The "prime" rate is ___________________________.

A financial institution organized for the main purpose of providing loans to purchase homes is a

List the 4 chequing account selection features discussed in the text.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Introduction to Consumer Credit

Choosing a Source 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