Exam 4: Managing Your Cash and Savings

Choose the word or phrase in [ ] which will correctly complete the statement. Select -You [would | would not] expect to receive a cash flow of interest from your Series EE bonds.

Vicki Vasquez owns a six-month treasury bill that is four months from maturity.She recently encountered medical problems and needs the money now.She

Joint checking accounts typically imply the right of survivorship if one party should die.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Interest rates will be lower on your [savings | checking] accounts.

The stated interest rate on your account is 7.12%,interest paid semi-annually.Your effective rate of interest (APY)will be

A ____ is an interest-bearing checking account.

Higher interest rates on certificates of deposit are associated with

Certificates of deposit can be purchased only at banks,savings and loan associations,and credit unions.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Natalie is faced with two savings choices: Making a single deposit of $5,000 or making five annual deposits of $1,000.The interest rate on both is 4%,compounded monthly.The [lump sum deposit | annual deposits] plan will result in a higher balance at the end of five years.

Although there are no legal minimum balances for a NOW account,many institutions impose their own requirement,often between $500 and $1,000 before they pay any interest.

You should invest in long-term CDs when you expect interest rates to fall.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Interest earned on your [credit union account | treasury bill holdings] would be free of state income taxes.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Banks must notify customers [30 | 60] days before lowering rates on deposit accounts or certificates of deposit.

You have $450 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 2 business days.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -EE savings bonds may be redeemed [any time after the first 12 months | only at the maturity date].

Financial institutions expect demand deposits to remain on deposit for a longer period of time than time deposits.

A certified check is a personal check that the bank guarantees the funds are available.

Lower interest rates on certificates of deposit are associated with

Credit union members are expected to have some common bond.

The prime candidate for using an Internet bank is a person who rarely visits their bank.