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

An asset management account provides a:

John Anderson deposited $10,000 in certificates of deposit (CD)for 3 years at 5%.At maturity,it should be worth: (Use time value tables or financial calculator.Select the closest answer.)

The rate of return on liquid assets is relatively high compared to other types of investments.

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. -The least expensive method for banks to interact with their customers is [ATM | online].

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

At maturity,a deposit of $6,000 in certificates of deposit (CD)for 10 years at 3% will be worth: (Select the closest answer)

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

Money Market Mutual Funds invest in long-term treasury securities and other types of bonds.