Question 1

A cashier's check is written on the bank's account rather than on a customer's account.

Accepted Answer

A) True 
 B)False

Question 2

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Financial institutions [must pay at least a federally mandated minimum interest rate | may pay any interest rate they want] on their various accounts.

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-With low interest rates,savers have begun investing in [bonds | stocks] where higher yields can be found.

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 4

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[Money market deposit accounts | money market mutual funds] are protected by the Federal Deposit Insurance Corporation.

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 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-In the wake of the recent financial crisis,the U.S.personal saving rate has [increased | decreased].

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 6

Sammi and Jason have $4,000 to deposit in a money market fund earning 5%.If they add $2,000 to that account annually,how much will they have accumulated in 15 years?

Accepted Answer

$51,472 or $51,473 Future valu

Question 7

NOW accounts are appropriate for people who need to keep substantial amounts of money in a checking account.

Accepted Answer

A) True 
 B)False

Question 8

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Joe and Mary have a tenants in common savings account.When Joe dies,his portion of the account [will | will not] automatically go to Mary.

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 9

If you invest $100 at 8% for one year,compounded semiannually,at the end of the year your balance will be (Use time value tables or financial calculator)

Accepted Answer

A)  $104.08. 
B)  $108.00. 
C)  $108.16. 
D)  $112.12. 
E)  none of these. 
A)  $104.08. 
B)  $108.00. 
C)  $108.16. 
D)  $112.12. 
E)  none of these.

Question 10

Compared to other depository financial institutions,credit unions

Accepted Answer

A)  are run to benefit their members. 
B)  pay higher interest on savings. 
C)  charge lower rates on loans. 
D)  all of the above are true. 
E)  none of the above are true. 
A)  are run to benefit their members. 
B)  pay higher interest on savings. 
C)  charge lower rates on loans. 
D)  all of the above are true. 
E)  none of the above are true.

Question 11

Treasury bills are sold at their face value.

Accepted Answer

A) True 
 B)False

Question 12

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Lower borrowing costs encourage the substitution of [debt for equity | equity for debt] in corporate capital structures.

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 13

Asset management accounts combine many cash management services into one account.

Accepted Answer

A) True 
 B)False

Question 14

Funds in a ____ must remain on deposit for a stated time period in order to avoid an interest penalty.

Accepted Answer

A)  certificate of deposit 
B)  U.S.Treasury bill 
C)  checking account 
D)  mutual fund 
E)  passbook savings 
A)  certificate of deposit 
B)  U.S.Treasury bill 
C)  checking account 
D)  mutual fund 
E)  passbook savings

Question 15

Series EE Savings bonds are now called Patriot Bonds.

Accepted Answer

A) True 
 B)False

Question 16

With low interest rates,savers have begun investing in stock where higher yields can be found.

Accepted Answer

A) True 
 B)False

Question 17

You are going on an overseas trip and you want to have checks that are easily converted into local currency.You should purchase

Accepted Answer

A)  cashier's checks. 
B)  certified checks. 
C)  conditional checks. 
D)  traveler's checks. 
E)  guaranteed checks. 
A)  cashier's checks. 
B)  certified checks. 
C)  conditional checks. 
D)  traveler's checks. 
E)  guaranteed checks.

Question 18

Money Market Deposit Accounts

Accepted Answer

A)  allow unlimited check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered only by credit unions. 
E)  all of these. 
A)  allow unlimited check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered only by credit unions. 
E)  all of these.

Question 19

Credit unions are mainly found in the northeastern U.S.

Accepted Answer

A) True 
 B)False

Question 20

Your checkbook balance shows $706.50.The bank statement shows $772.77.The bank paid $2.50 interest.Checks 1501 ($85),1507 ($50.16),1511 ($20.50)are not shown on the statement.A service charge of $5 was levied by the bank.You made a $85 deposit yesterday that is not on the statement.What is the reconciled balance?

Accepted Answer

The balanc

A cashier's check is written on the bank's account rather than on a customer's account.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Financial institutions [must pay at least a federally mandated minimum interest rate | may pay any interest rate they want] on their various accounts.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -With low interest rates,savers have begun investing in [bonds | stocks] where higher yields can be found.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Money market deposit accounts | money market mutual funds] are protected by the Federal Deposit Insurance Corporation.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -In the wake of the recent financial crisis,the U.S.personal saving rate has [increased | decreased].

Sammi and Jason have $4,000 to deposit in a money market fund earning 5%.If they add $2,000 to that account annually,how much will they have accumulated in 15 years?

NOW accounts are appropriate for people who need to keep substantial amounts of money in a checking account.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Joe and Mary have a tenants in common savings account.When Joe dies,his portion of the account [will | will not] automatically go to Mary.

If you invest $100 at 8% for one year,compounded semiannually,at the end of the year your balance will be (Use time value tables or financial calculator)

Compared to other depository financial institutions,credit unions

Treasury bills are sold at their face value.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Lower borrowing costs encourage the substitution of [debt for equity | equity for debt] in corporate capital structures.

Asset management accounts combine many cash management services into one account.

Funds in a ____ must remain on deposit for a stated time period in order to avoid an interest penalty.

Series EE Savings bonds are now called Patriot Bonds.

With low interest rates,savers have begun investing in stock where higher yields can be found.

You are going on an overseas trip and you want to have checks that are easily converted into local currency.You should purchase

Money Market Deposit Accounts

Credit unions are mainly found in the northeastern U.S.

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 cashier's check is written on the bank's account rather than on a customer's account.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Financial institutions [must pay at least a federally mandated minimum interest rate | may pay any interest rate they want] on their various accounts.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -With low interest rates,savers have begun investing in [bonds | stocks] where higher yields can be found.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Money market deposit accounts | money market mutual funds] are protected by the Federal Deposit Insurance Corporation.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -In the wake of the recent financial crisis,the U.S.personal saving rate has [increased | decreased].

Sammi and Jason have $4,000 to deposit in a money market fund earning 5%.If they add $2,000 to that account annually,how much will they have accumulated in 15 years?

NOW accounts are appropriate for people who need to keep substantial amounts of money in a checking account.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Joe and Mary have a tenants in common savings account.When Joe dies,his portion of the account [will | will not] automatically go to Mary.

If you invest $100 at 8% for one year,compounded semiannually,at the end of the year your balance will be (Use time value tables or financial calculator)

Compared to other depository financial institutions,credit unions

Treasury bills are sold at their face value.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Lower borrowing costs encourage the substitution of [debt for equity | equity for debt] in corporate capital structures.

Asset management accounts combine many cash management services into one account.

Funds in a ____ must remain on deposit for a stated time period in order to avoid an interest penalty.

Series EE Savings bonds are now called Patriot Bonds.

With low interest rates,savers have begun investing in stock where higher yields can be found.

You are going on an overseas trip and you want to have checks that are easily converted into local currency.You should purchase

Money Market Deposit Accounts

Credit unions are mainly found in the northeastern U.S.

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