Question 1

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. E

Question 2

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? (Show all work.)

Accepted Answer

$51,472 or $51,473
Future value = ($4,000 × 2.079)+ ($2,000 × 21.578)= $51,472
or
PV=4,000,PMT=2,000,N=15,I=5,FV=51,473

Question 3

In the wake of the recent financial crisis,the U.S.personal saving rate decreased.

Accepted Answer

A) True 
 B)False  False

Question 4

FDIC covers stocks,bonds,and mutual funds purchased at banks.

Accepted Answer

A) True 
 B)False

Question 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Banks [may | must] state interest rates they pay as annual percentage yields.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

Savings and loan associations usually offer non-interest bearing checking accounts.

Accepted Answer

A) True 
 B)False

Question 7

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Interest earned on your [MMDA account | Series EE savings bonds] are free of state income taxes.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Low interest rates have [increased | decreased | not impacted ] the supply of credit.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 9

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Errors discovered during the reconciliation process are most likely to have been made by the [depositor | bank].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

Share draft accounts are commonly offered by

Accepted Answer

A) commercial banks. 
B) savings and loan associations. 
C) mutual savings banks. 
D) credit unions. 
E) insurance companies. 
A) commercial banks. 
B) savings and loan associations. 
C) mutual savings banks. 
D) credit unions. 
E) insurance companies.

Question 11

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Your bank pays 3% interest,compounded quarterly.At the end of one year,your $5,000 will have earned [$150 | over $150] interest.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 12

When doing a bank reconciliation,interest earned on your account should be

Accepted Answer

A) deducted from your checkbook ledger. 
B) added to your checkbook ledger. 
C) ignored because the bank has already recorded it. 
D) listed as outstanding. 
E) compared to your interest calculations. 
A) deducted from your checkbook ledger. 
B) added to your checkbook ledger. 
C) ignored because the bank has already recorded it. 
D) listed as outstanding. 
E) compared to your interest calculations.

Question 13

Series EE Savings bonds are also called Patriot Bonds.

Accepted Answer

A) True 
 B)False

Question 14

A(n)____ is not an interest-bearing account.

Accepted Answer

A) money market mutual fund 
B) money market deposit account 
C) NOW account 
D) asset management account 
E) regular checking account 
A) money market mutual fund 
B) money market deposit account 
C) NOW account 
D) asset management account 
E) regular checking account

Question 15

Credit union members are expected to have some common bond.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Internet-only banks typically pay lower interest rates on savings than traditional banks.

Accepted Answer

A) True 
 B)False

Question 18

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Liquid assets would include your savings account and your [money market deposit account | stock mutual fund].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 19

When an S&L is a mutual association,it means that it is owned by the

Accepted Answer

A) borrowers. 
B) creditors. 
C) depositors. 
D) management. 
E) local government. 
A) borrowers. 
B) creditors. 
C) depositors. 
D) management. 
E) local government.

Question 20

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

Accepted Answer

A) True 
 B)False

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

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? (Show all work.)

In the wake of the recent financial crisis,the U.S.personal saving rate decreased.

FDIC covers stocks,bonds,and mutual funds purchased at banks.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Banks [may | must] state interest rates they pay as annual percentage yields.

Savings and loan associations usually offer non-interest bearing checking accounts.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Interest earned on your [MMDA account | Series EE savings bonds] are free of state income taxes.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Low interest rates have [increased | decreased | not impacted ] the supply of credit.

Share draft accounts are commonly offered by

When doing a bank reconciliation,interest earned on your account should be

Series EE Savings bonds are also called Patriot Bonds.

A(n)____ is not an interest-bearing account.

Credit union members are expected to have some common bond.

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

Internet-only banks typically pay lower interest rates on savings than traditional banks.

When an S&L is a mutual association,it means that it is owned by the

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

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

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

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? (Show all work.)

In the wake of the recent financial crisis,the U.S.personal saving rate decreased.

FDIC covers stocks,bonds,and mutual funds purchased at banks.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Banks [may | must] state interest rates they pay as annual percentage yields.

Savings and loan associations usually offer non-interest bearing checking accounts.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Interest earned on your [MMDA account | Series EE savings bonds] are free of state income taxes.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Low interest rates have [increased | decreased | not impacted ] the supply of credit.

Share draft accounts are commonly offered by

When doing a bank reconciliation,interest earned on your account should be

Series EE Savings bonds are also called Patriot Bonds.

A(n)____ is not an interest-bearing account.

Credit union members are expected to have some common bond.

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

Internet-only banks typically pay lower interest rates on savings than traditional banks.

When an S&L is a mutual association,it means that it is owned by the

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

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