Question 1

A bank could advertise as "free" a checking account that requires a minimum balance of $3,000 to avoid monthly service charges.

Accepted Answer

A) True 
 B)False

Question 2

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Having some type of overdraft protection with your bank will end up costing [more | less] than having a check bounce.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 3

If interest on a savings account is compounded semiannually,the effective rate of interest will be

Accepted Answer

A)  higher than the nominal rate. 
B)  lower than the nominal rate. 
C)  the same as the simple rate. 
D)  equal to the nominal rate. 
E)  lower than the simple rate. 
A)  higher than the nominal rate. 
B)  lower than the nominal rate. 
C)  the same as the simple rate. 
D)  equal to the nominal rate. 
E)  lower than the simple rate.

Question 4

A money market mutual fund is one way to participate indirectly in the purchase of money market securities.

Accepted Answer

A) True 
 B)False

Question 5

When reporting errors or unauthorized transactions,it is best to notify your bank

Accepted Answer

A)  by telephone 
B)  by letter,keeping a copy for your files. 
C)  by telephone and follow up with a letter and keep a copy for your files 
D)  none of the above 
A)  by telephone 
B)  by letter,keeping a copy for your files. 
C)  by telephone and follow up with a letter and keep a copy for your files 
D)  none of the above

Question 6

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Liquid assets would include your savings account and your [money market deposit account | stock mutual fund].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 7

The rate of return on a Series EE savings bond will be constant over the life of the bond.

Accepted Answer

A) True 
 B)False

Question 8

An Asset Management Account provides a

Accepted Answer

A)  checking account. 
B)  money market deposit account. 
C)  brokerage account. 
D)  line of credit. 
E)  all of the above. 
A)  checking account. 
B)  money market deposit account. 
C)  brokerage account. 
D)  line of credit. 
E)  all of the above.

Question 9

Asset management accounts are offered by most banks and are typically FDIC insured.

Accepted Answer

A) True 
 B)False

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Errors discovered during the reconciliation process are most likely to have been made by the [depositor | bank].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 11

Low interest rates encourage the substitution of capital for labor,thereby depressing employment.

Accepted Answer

A) True 
 B)False

Question 12

Historically,the primary purpose of savings and loan associations was to

Accepted Answer

A)  provide passbook accounts paying interest above that of commercial banks. 
B)  compete directly with commercial banks. 
C)  provide NOW accounts. 
D)  provide demand deposits. 
E)  channel savings into mortgages. 
A)  provide passbook accounts paying interest above that of commercial banks. 
B)  compete directly with commercial banks. 
C)  provide NOW accounts. 
D)  provide demand deposits. 
E)  channel savings into mortgages.

Question 13

The stated interest rate on your account is 3.5%,interest compounded monthly.If you deposit $100 each month,how much will you have in your account in 8 years? (Use time value tables or financial calculator)

Accepted Answer

A)  $ 9,600 
B)  $ 9,936 
C)  $11,060 
D)  $12,288 
E)  $12,350 
A)  $ 9,600 
B)  $ 9,936 
C)  $11,060 
D)  $12,288 
E)  $12,350

Question 14

Which of the following are important safeguards when using on-line banking?

Accepted Answer

A)  guarantees to protect you against losses 
B)  FDIC insurance 
C)  128-bit encryption 
D)  firewall to protect data 
E)  all of the above 
A)  guarantees to protect you against losses 
B)  FDIC insurance 
C)  128-bit encryption 
D)  firewall to protect data 
E)  all of the above

Question 15

The more frequently a bank compounds interest,____ will be.

Accepted Answer

A)  the higher the stated interest rate 
B)  the lower the stated interest rate 
C)  the higher the APY 
D)  the lower the APY 
E)  a and c 
A)  the higher the stated interest rate 
B)  the lower the stated interest rate 
C)  the higher the APY 
D)  the lower the APY 
E)  a and c

Question 16

Money Market Mutual Funds

Accepted Answer

A)  allow check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered by banks,S & Ls,and credit unions. 
E)  all of these. 
A)  allow check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered by banks,S & Ls,and credit unions. 
E)  all of these.

Question 17

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Your bank does not levy a service charge on your checking account as long as a $1,000 minimum balance is maintained.Your bank [can | cannot] advertise this as free checking.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 18

Another term for the interest paid by credit unions on deposits is dividends.

Accepted Answer

A) True 
 B)False

Question 19

Debit and ATM card transactions are linked to your checking account.

Accepted Answer

A) True 
 B)False

Question 20

Treasury bills are sold at a discount of their maturity value.

Accepted Answer

A) True 
 B)False

A bank could advertise as "free" a checking account that requires a minimum balance of $3,000 to avoid monthly service charges.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Having some type of overdraft protection with your bank will end up costing [more | less] than having a check bounce.

If interest on a savings account is compounded semiannually,the effective rate of interest will be

A money market mutual fund is one way to participate indirectly in the purchase of money market securities.

When reporting errors or unauthorized transactions,it is best to notify your bank

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Liquid assets would include your savings account and your [money market deposit account | stock mutual fund].

The rate of return on a Series EE savings bond will be constant over the life of the bond.

An Asset Management Account provides a

Asset management accounts are offered by most banks and are typically FDIC insured.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Errors discovered during the reconciliation process are most likely to have been made by the [depositor | bank].

Low interest rates encourage the substitution of capital for labor,thereby depressing employment.

Historically,the primary purpose of savings and loan associations was to

The stated interest rate on your account is 3.5%,interest compounded monthly.If you deposit $100 each month,how much will you have in your account in 8 years? (Use time value tables or financial calculator)

Which of the following are important safeguards when using on-line banking?

The more frequently a bank compounds interest,____ will be.

Money Market Mutual Funds

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Your bank does not levy a service charge on your checking account as long as a $1,000 minimum balance is maintained.Your bank [can | cannot] advertise this as free checking.

Another term for the interest paid by credit unions on deposits is dividends.

Debit and ATM card transactions are linked to your checking account.

Treasury bills are sold at a discount of their maturity value.

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

Planning for Retirement

Preserving Your Estate

Filters

Exam 4: Managing Your Cash and Savings

A bank could advertise as "free" a checking account that requires a minimum balance of $3,000 to avoid monthly service charges.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Having some type of overdraft protection with your bank will end up costing [more | less] than having a check bounce.

If interest on a savings account is compounded semiannually,the effective rate of interest will be

A money market mutual fund is one way to participate indirectly in the purchase of money market securities.

When reporting errors or unauthorized transactions,it is best to notify your bank

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Liquid assets would include your savings account and your [money market deposit account | stock mutual fund].

The rate of return on a Series EE savings bond will be constant over the life of the bond.

An Asset Management Account provides a

Asset management accounts are offered by most banks and are typically FDIC insured.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Errors discovered during the reconciliation process are most likely to have been made by the [depositor | bank].

Low interest rates encourage the substitution of capital for labor,thereby depressing employment.

Historically,the primary purpose of savings and loan associations was to

The stated interest rate on your account is 3.5%,interest compounded monthly.If you deposit $100 each month,how much will you have in your account in 8 years? (Use time value tables or financial calculator)

Which of the following are important safeguards when using on-line banking?

The more frequently a bank compounds interest,____ will be.

Money Market Mutual Funds

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Your bank does not levy a service charge on your checking account as long as a $1,000 minimum balance is maintained.Your bank [can | cannot] advertise this as free checking.

Another term for the interest paid by credit unions on deposits is dividends.

Debit and ATM card transactions are linked to your checking account.

Treasury bills are sold at a discount of their maturity value.

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

Planning for Retirement

Preserving Your Estate

Filters