Exam 4: Managing Your Cash and Savings

You have a savings plan into which you put $3,000 per year.How much will you accumulate in the account in 25 years if the interest rate is 10%? (Show all work.Round your answer to the nearest dollar.)

A major reason for overdrafts is the inability of a check writer to keep an accurate check ledger.

Federal Deposit Insurance Corporation ()covers stocks,bonds,and mutual funds purchased at banks.

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. -Joe and Mary are tenants in common savings account.When Joe dies,his portion of the account [will | will not] automatically go to Mary.

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

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)

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 [are | are not] federally insured.

The annual percentage yield (APY)formula considers compounding when determining the interest paid on accounts.

Credit unions typically pay higher rate of return on savings than banks and savings and loan associations.

Most credit unions provide their members with deposit insurance.

Your checkbook balance shows $706.50.The bank statement shows $772.77.The bank paid $2.50 interest.Checks 1501 ($85),1507 ($50.16),1511 ($20.50)are not shown on the statement.A service charge of $5 was levied by the bank.You made a $85 deposit yesterday that is not on the statement.What is the reconciled balance?

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. -[All | Some] banks include canceled checks with the monthly statement.

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 low interest rate economic environment is more likely to be accompanied by [lower unemployment | higher unemployment].

Stop-payment services are easier with electronic funds transfers than with traditional check payments.

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. -Liquid assets would include your savings account and your [money market deposit account | stock mutual fund].

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. -Banks must notify customers [30 | 60] days before lowering rates on deposit accounts or certificates of deposit.

Historically,the primary purpose of savings and loan associations was to:

Janie Long has checking and savings accounts in a federally insured financial institution.The maximum amount of her insurance coverage is:

Alice lost her ATM card at the lake and forgot it was missing until her monthly statement came 26 days later.She found that $800 had been withdrawn from her savings account.The most Alice will be legally liable for,assuming she notifies the bank at this point,is: