Question 1

Money Market Deposit Accounts:

Accepted Answer

A)  allows unlimited check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered only by credit unions. 
E)  all of these 
A)  allows unlimited check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered only by credit unions. 
E)  all of these

Question 2

An important rule for establishing a savings plan is to:

Accepted Answer

A)  set realistic goals. 
B)  take advantage of compounding. 
C)  pay yourself first. 
D)  reinvest any interest income. 
E)  All of the above 
A)  set realistic goals. 
B)  take advantage of compounding. 
C)  pay yourself first. 
D)  reinvest any interest income. 
E)  All of the above

Question 3

A lump sum deposit of $8,000 left in the bank for 12 years at 9% compounded annually will result in an ending balance of: (Select the closest answer)

Accepted Answer

A)  $11,600. 
B)  $16,640. 
C)  $22,500. 
D)  $52,938. 
E)  $96,000. 
A)  $11,600. 
B)  $16,640. 
C)  $22,500. 
D)  $52,938. 
E)  $96,000.

Question 4

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.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 5

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.
-[Both the depositor and writer | Only the writer] of a "bad check" will likely be charged a fee by their/his banks/bank.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

The minimum denomination for Treasury bills is now $100.

Accepted Answer

A) True 
 B)False

Question 7

Although there are no legal minimum balances for a NOW account,many institutions impose their own requirement,often between $500 and $1,000 before they pay any interest.

Accepted Answer

A) True 
 B)False

Question 8

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.
-Errors discovered during the reconciliation process are most likely to have been made by the [depositor | bank].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 9

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 bonds | certificates of deposit] can be free of federal income taxes.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

You have $450 in your checking account when your ATM card and PIN are stolen.You could lose up to _____ if you report the lost ATM card within 2-8 business days.

Accepted Answer

A)  $ 0 
B)  $ 25 
C)  $ 50 
D)  $450 
E)  $500 
A)  $ 0 
B)  $ 25 
C)  $ 50 
D)  $450 
E)  $500

Question 11

The prime candidate for using an Internet bank is a person who rarely visits their bank.

Accepted Answer

A) True 
 B)False

Question 12

Mary Young has a checking account in her name and a joint savings account with her husband at her bank.The maximum amount of deposit insurance she can have is $100,000.

Accepted Answer

A) True 
 B)False

Question 13

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.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 14

Money Market Mutual Funds:

Accepted Answer

A)  allows check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered by savings and loan associations (S&Ls),and credit unions. 
E)  all of these 
A)  allows check writing. 
B)  are typically federally insured. 
C)  have stated maturity dates. 
D)  are offered by savings and loan associations (S&Ls),and credit unions. 
E)  all of these

Question 15

Which of the following is not true of low interest rates?

Accepted Answer

A)  It encourages investors to search out investments like high dividend stock. 
B)  It encourages the substitution of debt for equity. 
C)  Low interest rates have increased the supply of credit. 
D)  Low rates penalized savers. 
E)  Low rates may discourage paying down the national debt. 
A)  It encourages investors to search out investments like high dividend stock. 
B)  It encourages the substitution of debt for equity. 
C)  Low interest rates have increased the supply of credit. 
D)  Low rates penalized savers. 
E)  Low rates may discourage paying down the national debt.

Question 16

Treasury bills are sold at their face value.

Accepted Answer

A) True 
 B)False

Question 17

There is a penalty for early withdrawal of funds from certificates of deposit (CDs)purchased from brokerage firms.

Accepted Answer

A) True 
 B)False

Question 18

There are numerous advantages and disadvantages of online bill payment systems.Which of the following is a potential advantage?

Accepted Answer

A)  Privacy 
B)  FDIC insurance 
C)  Round-the-clock help 
D)  Efficient start-up 
E)  Use of float 
A)  Privacy 
B)  FDIC insurance 
C)  Round-the-clock help 
D)  Efficient start-up 
E)  Use of float

Question 19

Sammi and Jason have $4,000 to deposit in a money market fund earning 5%.If they add $2,000 to that account annually,how much will they have accumulated in 15 years? (Show all work.Round your answer to the nearest dollar.)

Accepted Answer

$51,472 or $51,473
Future valu

Question 20

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.
-[Anyone | Only those with an account at the bank] could use a certified check.

Accepted Answer

The answer of Choose the word or phrase in [...

Money Market Deposit Accounts:

An important rule for establishing a savings plan is to:

A lump sum deposit of $8,000 left in the bank for 12 years at 9% compounded annually will result in an ending balance of: (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. -A [checking | savings] account is called a demand deposit account.

The minimum denomination for Treasury bills is now $100.

Although there are no legal minimum balances for a NOW account,many institutions impose their own requirement,often between $500 and $1,000 before they pay any interest.

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 bonds | certificates of deposit] can be free of federal income taxes.

You have $450 in your checking account when your ATM card and PIN are stolen.You could lose up to _____ if you report the lost ATM card within 2-8 business days.

The prime candidate for using an Internet bank is a person who rarely visits their bank.

Mary Young has a checking account in her name and a joint savings account with her husband at her bank.The maximum amount of deposit insurance she can have is $100,000.

Money Market Mutual Funds:

Which of the following is not true of low interest rates?

Treasury bills are sold at their face value.

There is a penalty for early withdrawal of funds from certificates of deposit (CDs)purchased from brokerage firms.

There are numerous advantages and disadvantages of online bill payment systems.Which of the following is a potential advantage?

Sammi and Jason have $4,000 to deposit in a money market fund earning 5%.If they add $2,000 to that account annually,how much will they have accumulated in 15 years? (Show all work.Round your answer to the nearest dollar.)

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. -[Anyone | Only those with an account at the bank] could use a certified check.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 4: Managing Your Cash and Savings

Money Market Deposit Accounts:

An important rule for establishing a savings plan is to:

A lump sum deposit of $8,000 left in the bank for 12 years at 9% compounded annually will result in an ending balance of: (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. -A [checking | savings] account is called a demand deposit account.

The minimum denomination for Treasury bills is now $100.

Although there are no legal minimum balances for a NOW account,many institutions impose their own requirement,often between $500 and $1,000 before they pay any interest.

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 bonds | certificates of deposit] can be free of federal income taxes.

You have $450 in your checking account when your ATM card and PIN are stolen.You could lose up to _____ if you report the lost ATM card within 2-8 business days.

The prime candidate for using an Internet bank is a person who rarely visits their bank.

Mary Young has a checking account in her name and a joint savings account with her husband at her bank.The maximum amount of deposit insurance she can have is $100,000.

Money Market Mutual Funds:

Which of the following is not true of low interest rates?

Treasury bills are sold at their face value.

There is a penalty for early withdrawal of funds from certificates of deposit (CDs)purchased from brokerage firms.

There are numerous advantages and disadvantages of online bill payment systems.Which of the following is a potential advantage?

Sammi and Jason have $4,000 to deposit in a money market fund earning 5%.If they add $2,000 to that account annually,how much will they have accumulated in 15 years? (Show all work.Round your answer to the nearest dollar.)

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. -[Anyone | Only those with an account at the bank] could use a certified check.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters