Exam 4: Managing Your Cash and Savings

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 probably [will | will not] levy a transaction fee if you use the ATM of another bank.

A check you wrote to buy shoes last week has not yet been processed by the bank.It is said to be

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. -Series EE savings bonds are also called [War Bonds | Patriot Bonds].

Within how many business days must a bank make proceeds of deposited checks available?

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 | Money market mutual funds] are protected by the Federal Deposit Insurance Corporation.

The stated interest rate on your account is 7.12% with interest paid semiannually.Your effective rate of interest will be

Sandy wants to go on a trip in 10 years.If she invests $1,000 per year at the end of each year for 10 years at a 12% interest rate,she will accumulate ____ to spend on her trip.(Use time value table or financial calculator.)

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

Savings and loan associations (S&Ls)channel the savings of depositors primarily into automotive loans.

A bank cannot advertise as "free" a checking account that requires a minimum balance,even though depositors who maintain the minimum balance pay no service fees.

From the bank's perspective,ATM transactions are more costly than online banking transactions.

Eric has $1,000 and would like to use it to start a savings program.He will add to the program regularly by investing $50 per month in a liquid account.Which of the following types of accounts would be most appropriate in this situation?

If one wanted to make monthly deposits to accumulate funds for future expenditures,a money market account would be an appropriate savings vehicle.

Funds in a ____ must remain on deposit for the stated time period in order to avoid an interest penalty.

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. -A [checking | savings] account is called a demand deposit 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. -Having some type of overdraft protection with your bank will end up costing [more | less] than having a check bounce.

The rate of return on a Series EE savings bond changes semiannually.

A deposit of $6,000 saved in a CD for 10 years at 3% compounded annually will be worth (select the closest answer)

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 [Series EE savings bonds | T-bills] are exempt from federal income taxes if the proceeds are used to pay for education expenses.

Credit unions are