Question 1

Which of the following is not a strategy to building your savings?

Accepted Answer

A) Pay yourself first. 
B) Reinvest interest and dividends. 
C) Splurge once in a while. 
D) Set up a retirement plan. 
E) All the above are strategies. 
A) Pay yourself first. 
B) Reinvest interest and dividends. 
C) Splurge once in a while. 
D) Set up a retirement plan. 
E) All the above are strategies.

Question 2

There is a penalty for early withdrawal of funds from CDs purchased from brokerage firms.

Accepted Answer

A) True 
 B)False

Question 3

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.
-Today the differences between a commercial bank and an S&L are [minor | major].

Accepted Answer

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

Question 4

For married depositors,it is possible to increase the $250,000 of deposit insurance to up to $1,500,000 by opening a variety of accounts in different depositor names at the same institution.

Accepted Answer

A) True 
 B)False

Question 5

If your bank states that it compounds monthly,the effective interest rate (APY)will be greater than the nominal interest rate.

Accepted Answer

A) True 
 B)False

Question 6

The stated interest rate on your account is 5% with interest compounded monthly.If you deposit $50 each month,how much will you have in your account in 5 years? (Use time value tables or financial calculator.)

Accepted Answer

A) $3,000 
B) $3,050 
C) $3,200 
D) $3,400 
E) $4,350 
A) $3,000 
B) $3,050 
C) $3,200 
D) $3,400 
E) $4,350

Question 7

You have $900 in your checking account when your EFTS card and PIN are stolen.You could lose up to ____ if you report the lost EFTS card within 60 business days.

Accepted Answer

A) $0 
B) $50 
C) $450 
D) $500 
E) $900 
A) $0 
B) $50 
C) $450 
D) $500 
E) $900

Question 8

Series HH bonds are issued at their full face value and pay interest semiannually at the current fixed rate.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) can request in writing for the treasury to pay her early. 
B) can sell the T-bill in the open market. 
C) will have to wait until the maturity date to get her money. 
D) can call a toll-free number to request the money. 
E) can go to the bank and withdraw the funds needed. 
A) can request in writing for the treasury to pay her early. 
B) can sell the T-bill in the open market. 
C) will have to wait until the maturity date to get her money. 
D) can call a toll-free number to request the money. 
E) can go to the bank and withdraw the funds needed.

Question 10

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.
-[Anyone | Only those with an account at the bank] can get a check certified.

Accepted Answer

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

Question 11

A lump sum deposit of $8,000 left in the bank for 12 years at 9% compounded annually will result in an ending balance of (select the closest answer)

Accepted Answer

A) $11,600. 
B) $16,640. 
C) $22,500. 
D) $52,938. 
E) $96,000. 
A) $11,600. 
B) $16,640. 
C) $22,500. 
D) $52,938. 
E) $96,000.

Question 12

Stop-payment services are easier with electronic funds transfers than with traditional check payments.

Accepted Answer

A) True 
 B)False

Question 13

If you invest $1,200 per year at the end of each year for 40 years at an 8% rate of return,you will have accumulated (use time value table or financial calculator)

Accepted Answer

A) $ 48,000. 
B) $ 51,840. 
C) $310,862. 
D) $379,000. 
E) $384,000. 
A) $ 48,000. 
B) $ 51,840. 
C) $310,862. 
D) $379,000. 
E) $384,000.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A savings account may be a useful tool in managing everyday household transactions.

Accepted Answer

A) True 
 B)False

Question 17

Christina works at a company that offers direct deposit of her paycheck.This service is called

Accepted Answer

A) an ATM service. 
B) a FDIC service. 
C) a money market service. 
D) an EFT service. 
E) an overdraft service. 
A) an ATM service. 
B) a FDIC service. 
C) a money market service. 
D) an EFT service. 
E) an overdraft service.

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.
-You are planning to deposit $5,000 in a bank.At the end of one year,you will have more money in this account if interest is compounded [semiannually | quarterly].

Accepted Answer

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

Question 19

Gordon and Susan have a regular savings plan and have accumulated $8,000.How much will this be worth in 10 years if they can earn 2% on the money.They are not planning to add to this savings account.(Show all work.)

Accepted Answer

$9,752
Future value

Question 20

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

Accepted Answer

A) True 
 B)False

Which of the following is not a strategy to building your savings?

There is a penalty for early withdrawal of funds from CDs purchased from brokerage firms.

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. -Today the differences between a commercial bank and an S&L are [minor | major].

For married depositors,it is possible to increase the $250,000 of deposit insurance to up to $1,500,000 by opening a variety of accounts in different depositor names at the same institution.

If your bank states that it compounds monthly,the effective interest rate (APY)will be greater than the nominal interest rate.

The stated interest rate on your account is 5% with interest compounded monthly.If you deposit $50 each month,how much will you have in your account in 5 years? (Use time value tables or financial calculator.)

You have $900 in your checking account when your EFTS card and PIN are stolen.You could lose up to ____ if you report the lost EFTS card within 60 business days.

Series HH bonds are issued at their full face value and pay interest semiannually at the current fixed rate.

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

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. -[Anyone | Only those with an account at the bank] can get a check certified.

A lump sum deposit of $8,000 left in the bank for 12 years at 9% compounded annually will result in an ending balance of (select the closest answer)

Stop-payment services are easier with electronic funds transfers than with traditional check payments.

If you invest $1,200 per year at the end of each year for 40 years at an 8% rate of return,you will have accumulated (use time value table or financial calculator)

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

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

A savings account may be a useful tool in managing everyday household transactions.

Christina works at a company that offers direct deposit of her paycheck.This service is called

Gordon and Susan have a regular savings plan and have accumulated $8,000.How much will this be worth in 10 years if they can earn 2% on the money.They are not planning to add to this savings account.(Show all work.)

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

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

Which of the following is not a strategy to building your savings?

There is a penalty for early withdrawal of funds from CDs purchased from brokerage firms.

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. -Today the differences between a commercial bank and an S&L are [minor | major].

For married depositors,it is possible to increase the $250,000 of deposit insurance to up to $1,500,000 by opening a variety of accounts in different depositor names at the same institution.

If your bank states that it compounds monthly,the effective interest rate (APY)will be greater than the nominal interest rate.

The stated interest rate on your account is 5% with interest compounded monthly.If you deposit $50 each month,how much will you have in your account in 5 years? (Use time value tables or financial calculator.)

You have $900 in your checking account when your EFTS card and PIN are stolen.You could lose up to ____ if you report the lost EFTS card within 60 business days.

Series HH bonds are issued at their full face value and pay interest semiannually at the current fixed rate.

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

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. -[Anyone | Only those with an account at the bank] can get a check certified.

A lump sum deposit of $8,000 left in the bank for 12 years at 9% compounded annually will result in an ending balance of (select the closest answer)

Stop-payment services are easier with electronic funds transfers than with traditional check payments.

If you invest $1,200 per year at the end of each year for 40 years at an 8% rate of return,you will have accumulated (use time value table or financial calculator)

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

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

A savings account may be a useful tool in managing everyday household transactions.

Christina works at a company that offers direct deposit of her paycheck.This service is called

Gordon and Susan have a regular savings plan and have accumulated $8,000.How much will this be worth in 10 years if they can earn 2% on the money.They are not planning to add to this savings account.(Show all work.)

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

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