Exam 4: Managing Your Cash and Savings

The rate of return on a Series EE savings bond will be constant over the life of the bond.

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. -[Both the depositor and writer | Only the writer] of a "bad" check will likely be charged a fee by their/his banks/bank.

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 A for the first item, B for the second item, and C if neither item will correctly complete the statement. -It costs financial institutions more for their customers to perform [ATM transactions | Internet transactions.]

Asset management accounts (AMAs)are offered by brokerage firms and are protected by the Securities Investor Protection Corporation.

Terry started saving $50 a month at age 25 in an account earning 6% compounded monthly.At age 40,she will have ____ in this account.(Use time value tables or financial calculator.)

The minimum denomination for Treasury bills is now $1,000.

If your checkbook is lost or stolen,there is no need to stop payment on the checks.

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 rates will be lower on your [savings | checking] account.

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. -Financial institutions [must pay at least a federally mandated minimum interest rate | may pay any interest rate they want] on their certificates of deposit.

Whenever you write a check or make a deposit,an entry should be made in your

Which of the following is a potential advantage of online bill payment systems?

Low interest rates have increased the supply of credit.

Gordon started saving $25 a month at age 20 in an account earning 4% compounded monthly.At age 40,he will have ____ in this account.(Use time value tables or financial calculator.)

Janice Sanders plans on saving $12,000 for 3 years until she returns to college for her master's degree in personal financial planning.She would like to receive a fixed rate of return over that period.Which of the following would you recommend?

Money market mutual funds invest in long-term treasury securities and other types of bonds.

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 make a promise to keep funds on deposit for a stated period of time when you open a [MMDA | CD].

NOW accounts are appropriate for people who need to keep substantial amounts of money in a checking account and use it for numerous transactions each month.

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. -[Money market deposit accounts | Asset management accounts] are protected by the Securities Investor Protection Corporation.

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)