Exam 4: Managing Your Cash and Savings

Which of the following would be an appropriate savings vehicle,if you plan to use your savings within an year and if you expect interest rates to fall over the next few months?

Which of the following persons would ideally use Internet banking?

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 [would | would not] expect to receive a cash flow of interest from your Series EE 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. -"For deposit only" would indicate a [blank | restricted] endorsement.

Savings and loan associations (S&Ls)represent the largest segment of the financial institutions industry.

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 Yield.

Money market mutual funds are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC)if purchased at a commercial bank..

If interest on a savings account is compounded semiannually,the effective rate of interest will be:

Saving accounts are sometimes referred to as demand deposits.

Lower interest rates on certificates of deposit are associated with:

Credit union members are expected to have some common 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. -Dottie and Jasper have a joint checking account with rights of survivorship.If Jasper dies,his portion of the account [will | will not] automatically go to Dottie.

Higher interest rates on certificates of deposit are associated with:

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 would expect to find an asset management account at a [commercial bank | brokerage firm].

Asset management accounts combine many cash management services into one account.

The interest on your Series EE savings 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. -Series EE bonds may be redeemed [any time after the first 12 months | only at the maturity date].

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

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 [will | will not] levy a transaction fee if you use ATM of another bank to make a withdrawal.

The more frequently a bank compounds interest,_____ will be.