Exam 4: Managing Your Cash and Savings

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?

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.

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 are planning to deposit $5,000 in a bank.At the end of one year,you will have more money in this account if interest is compounded [semiannually | quarterly].

Money market deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC)if purchased at a bank.

Share draft accounts are commonly offered by:

In the wake of the recent financial crisis,the U.S.personal saving rate decreased.

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. -During the past few years,the number of financial institution failures per year has [risen | dropped].

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

You have $900 in your checking account when your ATM card and PIN are stolen.You could lose up to _____ if you report the lost ATM card after 60 business days after your periodic statement was mailed.

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 FDIC insures each [depositor | account] up to a stated maximum dollar amount at any given financial institution.

If Suzie has $2,000 in checking,$50,000 in a money market account,and $75,000 in certificates of deposit (all individual accounts)at her local bank,her accounts would be completely insured through FDIC.

Which of the following is not a strategy to build your nest egg?

Alice lost her ATM card at the lake and reported it missing the next day.She found that $800 had been withdrawn from her savings account.The most Alice will be legally liable for is:

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

Harry just received $2,000 for graduation.He plans on investing this money for five years at 8% compounded annually.If he accomplishes this,Harry will have in an ending balance of: (Use time value tables or financial calculator.Select the closest answer.)

A money market mutual fund is one way to participate indirectly in the purchase of money market securities.

The minimum denomination of T-bills you can buy is:

Credit unions are:

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 loan associations.

Banks and other financial institutions insure the contents of safe-deposit boxes.