Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding.

Accepted Answer

A) True 
 B)False

Question 4

You should insure valuables,even if they are kept in a safe-deposit box.

Accepted Answer

A) True 
 B)False

Question 5

A ____ is an interest-bearing checking account.

Accepted Answer

A) certificate of deposit 
B) Treasury bill 
C) NOW account 
D) Series EE US savings bond 
E) regular checking account 
A) certificate of deposit 
B) Treasury bill 
C) NOW account 
D) Series EE US savings bond 
E) regular checking account

Question 6

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.
-Savings and loan associations are more likely to be paying [much | slightly] higher interest rates on their accounts than a commercial bank.

Accepted Answer

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

Question 7

John Anderson deposited $10,000 in a CD for 3 years at 5%.It should now be worth (Use time value tables or financial calculator)

Accepted Answer

A) $10,500. 
B) $10,725. 
C) $11,400. 
D) $11,580. 
E) $12,400. 
A) $10,500. 
B) $10,725. 
C) $11,400. 
D) $11,580. 
E) $12,400.

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.
-Credit unions are generally [small | large] institutions when compared with commercial banks and savings and loans.

Accepted Answer

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

Question 9

You have a savings plan into which you put $3,000 per year.How much will you accumulate in the account in 25 years if the interest rate is 10%? (Show all work.)

Accepted Answer

$295,038 or $295,041

Question 10

Money market mutual funds

Accepted Answer

A) allow check writing. 
B) are not federally insured. 
C) pool the funds of many small investors. 
D) pay interest rates of 1 to 3 percent higher than those paid on regular savings accounts. 
E) all of these. 
A) allow check writing. 
B) are not federally insured. 
C) pool the funds of many small investors. 
D) pay interest rates of 1 to 3 percent higher than those paid on regular savings accounts. 
E) all of these.

Question 11

Specialization within the financial institutions industry continues to increase.

Accepted Answer

A) True 
 B)False

Question 12

You have $450 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 2 business days.

Accepted Answer

A) $0 
B) $25 
C) $50 
D) $450 
E) $500 
A) $0 
B) $25 
C) $50 
D) $450 
E) $500

Question 13

The least expensive method for banks to interact with their customers is

Accepted Answer

A) in person. 
B) on the phone. 
C) online. 
D) ATM machine. 
E) self service kiosks. 
A) in person. 
B) on the phone. 
C) online. 
D) ATM machine. 
E) self service kiosks.

Question 14

Compound interest means that a savings account earns interest on the interest previously earned.

Accepted Answer

A) True 
 B)False

Question 15

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.
-In the wake of the recent financial crisis,the U.S.personal saving rate has [increased | decreased].

Accepted Answer

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

Question 16

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 17

Credit unions typically pay higher rates of return on savings than banks and savings and loan associations.

Accepted Answer

A) True 
 B)False

Question 18

You put $1,000 into a 12-month certificate of deposit.After seven months,you really need the money.The bank will let you have it before 12 months,but you will pay a penalty.

Accepted Answer

A) True 
 B)False

Question 19

Connie Shockey wants to put funds in an account that does not offer checking privileges because she has a tendency to overspend.Which of the following would fit her criteria?

Accepted Answer

A) NOW account 
B) A DDA with overdraft protection 
C) money market mutual fund 
D) money market deposit account 
E) certificate of deposit 
A) NOW account 
B) A DDA with overdraft protection 
C) money market mutual fund 
D) money market deposit account 
E) certificate of deposit

Question 20

One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account.

Accepted Answer

A) True 
 B)False

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

Money market deposit accounts

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding.

You should insure valuables,even if they are kept in a safe-deposit box.

A ____ is an interest-bearing checking account.

John Anderson deposited $10,000 in a CD for 3 years at 5%.It should now be worth (Use time value tables or financial calculator)

You have a savings plan into which you put $3,000 per year.How much will you accumulate in the account in 25 years if the interest rate is 10%? (Show all work.)

Money market mutual funds

Specialization within the financial institutions industry continues to increase.

You have $450 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 2 business days.

The least expensive method for banks to interact with their customers is

Compound interest means that a savings account earns interest on the interest previously earned.

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. -In the wake of the recent financial crisis,the U.S.personal saving rate has [increased | decreased].

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.)

Credit unions typically pay higher rates of return on savings than banks and savings and loan associations.

You put $1,000 into a 12-month certificate of deposit.After seven months,you really need the money.The bank will let you have it before 12 months,but you will pay a penalty.

Connie Shockey wants to put funds in an account that does not offer checking privileges because she has a tendency to overspend.Which of the following would fit her criteria?

One could expect to earn a higher rate of interest on a certificate of deposit than on a 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

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

Money market deposit accounts

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding.

You should insure valuables,even if they are kept in a safe-deposit box.

A ____ is an interest-bearing checking account.

John Anderson deposited $10,000 in a CD for 3 years at 5%.It should now be worth (Use time value tables or financial calculator)

You have a savings plan into which you put $3,000 per year.How much will you accumulate in the account in 25 years if the interest rate is 10%? (Show all work.)

Money market mutual funds

Specialization within the financial institutions industry continues to increase.

You have $450 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 2 business days.

The least expensive method for banks to interact with their customers is

Compound interest means that a savings account earns interest on the interest previously earned.

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. -In the wake of the recent financial crisis,the U.S.personal saving rate has [increased | decreased].

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.)

Credit unions typically pay higher rates of return on savings than banks and savings and loan associations.

You put $1,000 into a 12-month certificate of deposit.After seven months,you really need the money.The bank will let you have it before 12 months,but you will pay a penalty.

Connie Shockey wants to put funds in an account that does not offer checking privileges because she has a tendency to overspend.Which of the following would fit her criteria?

One could expect to earn a higher rate of interest on a certificate of deposit than on a 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