Question 1

Which of the following financial institutions were originally established to provide mortgage loans to depositors?

Accepted Answer

A) Commercial banks 
B) Savings and loan associations 
C) Internet banks 
D) Credit unions 
A) Commercial banks 
B) Savings and loan associations 
C) Internet banks 
D) Credit unions

Question 2

Brick-and-mortar banks typically offer superior interest rates for borrowers and savers.

Accepted Answer

A) True 
 B)False

Question 3

Your bank,First Bank,charges you $1.50 every time you use an ATM that is not owned by them.Unfortunately,there is no First Bank ATM near your school.There is a Second Bank ATM in the Student Center,which you use several times a week to withdraw $10 at a time for lunch,video games,etc.What is the best piece of advice regarding these transactions?

Accepted Answer

A) They will make it hard to balance your account since these transactions won't show up on your monthly statements. 
B) They're OK as long as you enter the transactions in your check register. 
C) Avoid them since you are effectively paying 15% interest to access your cash. 
D) Make sure you have overdraft protection on your account. 
A) They will make it hard to balance your account since these transactions won't show up on your monthly statements. 
B) They're OK as long as you enter the transactions in your check register. 
C) Avoid them since you are effectively paying 15% interest to access your cash. 
D) Make sure you have overdraft protection on your account.

Question 4

Christopher has not received an Income Tax refund in 4 years.Is there anything you could recommend to him?

Accepted Answer

A) No,without dependents there is not much he can do now. 
B) He should increase his 401(k)contributions to 6% of his salary. 
C) He should itemize his deductions. 
D) He should change his W-2 form and claim more deductions. 
E) All but A are good recommendations. 
A) No,without dependents there is not much he can do now. 
B) He should increase his 401(k)contributions to 6% of his salary. 
C) He should itemize his deductions. 
D) He should change his W-2 form and claim more deductions. 
E) All but A are good recommendations.

Question 5

What financial principle do they need to understand better?

Accepted Answer

A) The time value of money 
B) Taxes affect personal finance decisions. 
C) Risk and return go hand in hand. 
D) All of the above are important to their situation. 
A) The time value of money 
B) Taxes affect personal finance decisions. 
C) Risk and return go hand in hand. 
D) All of the above are important to their situation.

Question 6

What is a risk associated with keeping liquid assets?

Accepted Answer

One risk is the more cash you have,the m

Question 7

You are considering an MMMF.The fund is taxable and pays 8.5% interest.If your top federal tax bracket is 25% and you live in a state that doesn't impose income taxes,what after-tax return would you realize from this investment?

Accepted Answer

A) 6.38% 
B) 2.13% 
C) 7.44% 
D) 8.25% 
A) 6.38% 
B) 2.13% 
C) 7.44% 
D) 8.25%

Question 8

When you automate your savings you are less likely to spend those dollars because they never become part of the funds in your checking account.

Accepted Answer

A) True 
 B)False

Question 9

A traveler's check is a personal check that has been certified as being good by the financial institution on which it is drawn.

Accepted Answer

A) True 
 B)False

Question 10

The FDIC and the National Credit Union Association insures accounts up to

Accepted Answer

A) $270,000. 
B) $250,000. 
C) $150,000. 
D) $300,000. 
A) $270,000. 
B) $250,000. 
C) $150,000. 
D) $300,000.

Question 11

What would you recommend to Christopher concerning his cash management?

Accepted Answer

A) He should set up EFT payments for his auto loan. 
B) He should switch his current account to a Money Market Deposit Account. 
C) He should give up some liquidity. 
D) All the above are correct. 
E) All but C are correct. 
A) He should set up EFT payments for his auto loan. 
B) He should switch his current account to a Money Market Deposit Account. 
C) He should give up some liquidity. 
D) All the above are correct. 
E) All but C are correct.

Question 12

One of the advantages of T-Bills is that they are exempt from federal taxes but subject to state income taxes.

Accepted Answer

A) True 
 B)False

Question 13

Money Market Deposit Accounts enjoy one advantage over savings accounts found in commercial banks.This advantage is

Accepted Answer

A) a variable rate that is generally higher. 
B) lower fees and smaller minimum balances. 
C) greater liquidity. 
D) unlimited check-writing privileges. 
A) a variable rate that is generally higher. 
B) lower fees and smaller minimum balances. 
C) greater liquidity. 
D) unlimited check-writing privileges.

Question 14

Pay yourself first refers to

Accepted Answer

A) buy that car you've been wanting. 
B) put money in a savings account. 
C) head out on a exotic vacation. 
D) buy the house you've always dreamed of. 
A) buy that car you've been wanting. 
B) put money in a savings account. 
C) head out on a exotic vacation. 
D) buy the house you've always dreamed of.

Question 15

Which of the following is not an advantage of a CD as a cash management alternative?

Accepted Answer

A) CDs have fixed interest rates,which are beneficial if interest rates drop. 
B) CDs offer a wide selection of maturities. 
C) CDs are insured. 
D) CDs offer liquidity. 
E) CDs are convenient to purchase. 
A) CDs have fixed interest rates,which are beneficial if interest rates drop. 
B) CDs offer a wide selection of maturities. 
C) CDs are insured. 
D) CDs offer liquidity. 
E) CDs are convenient to purchase.

Question 16

Virginia Tech's Hokie Passport is an example of a smart card.

Accepted Answer

A) True 
 B)False

Question 17

All of the following are advantages of CDs except

Accepted Answer

A) federally insured. 
B) convenient. 
C) minimum deposit required. 
D) buy through payroll deduction plan. 
A) federally insured. 
B) convenient. 
C) minimum deposit required. 
D) buy through payroll deduction plan.

Question 18

Electronic funds transfer applies to which of the following?

Accepted Answer

A) Debit cards 
B) Smart cards 
C) Direct deposit 
D) ATM 
E) All of the above are correct answers. 
A) Debit cards 
B) Smart cards 
C) Direct deposit 
D) ATM 
E) All of the above are correct answers.

Question 19

What is the name for comprehensive financial services packages offered by brokerage firms?

Accepted Answer

A) Asset management accounts 
B) Comprehensive management accounts 
C) Platinum management accounts 
D) Consolidated management accounts 
A) Asset management accounts 
B) Comprehensive management accounts 
C) Platinum management accounts 
D) Consolidated management accounts

Question 20

A savings alternative that pays a fixed rate of interest while keeping your funds on deposit for a contracted period of time that can range from 30 days to several years is called a

Accepted Answer

A) demand deposit. 
B) negotiable order of withdrawal deposit. 
C) term deposit. 
D) certificate of deposit. 
E) None of the above are correct. 
A) demand deposit. 
B) negotiable order of withdrawal deposit. 
C) term deposit. 
D) certificate of deposit. 
E) None of the above are correct.

Which of the following financial institutions were originally established to provide mortgage loans to depositors?

Brick-and-mortar banks typically offer superior interest rates for borrowers and savers.

Christopher has not received an Income Tax refund in 4 years.Is there anything you could recommend to him?

What financial principle do they need to understand better?

What is a risk associated with keeping liquid assets?

You are considering an MMMF.The fund is taxable and pays 8.5% interest.If your top federal tax bracket is 25% and you live in a state that doesn't impose income taxes,what after-tax return would you realize from this investment?

When you automate your savings you are less likely to spend those dollars because they never become part of the funds in your checking account.

A traveler's check is a personal check that has been certified as being good by the financial institution on which it is drawn.

The FDIC and the National Credit Union Association insures accounts up to

What would you recommend to Christopher concerning his cash management?

One of the advantages of T-Bills is that they are exempt from federal taxes but subject to state income taxes.

Money Market Deposit Accounts enjoy one advantage over savings accounts found in commercial banks.This advantage is

Pay yourself first refers to

Which of the following is not an advantage of a CD as a cash management alternative?

Virginia Tech's Hokie Passport is an example of a smart card.

All of the following are advantages of CDs except

Electronic funds transfer applies to which of the following?

What is the name for comprehensive financial services packages offered by brokerage firms?

A savings alternative that pays a fixed rate of interest while keeping your funds on deposit for a contracted period of time that can range from 30 days to several years is called a

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 5: Cash or Liquid Asset Management

Which of the following financial institutions were originally established to provide mortgage loans to depositors?

Brick-and-mortar banks typically offer superior interest rates for borrowers and savers.

Christopher has not received an Income Tax refund in 4 years.Is there anything you could recommend to him?

What financial principle do they need to understand better?

What is a risk associated with keeping liquid assets?

You are considering an MMMF.The fund is taxable and pays 8.5% interest.If your top federal tax bracket is 25% and you live in a state that doesn't impose income taxes,what after-tax return would you realize from this investment?

When you automate your savings you are less likely to spend those dollars because they never become part of the funds in your checking account.

A traveler's check is a personal check that has been certified as being good by the financial institution on which it is drawn.

The FDIC and the National Credit Union Association insures accounts up to

What would you recommend to Christopher concerning his cash management?

One of the advantages of T-Bills is that they are exempt from federal taxes but subject to state income taxes.

Money Market Deposit Accounts enjoy one advantage over savings accounts found in commercial banks.This advantage is

Pay yourself first refers to

Which of the following is not an advantage of a CD as a cash management alternative?

Virginia Tech's Hokie Passport is an example of a smart card.

All of the following are advantages of CDs except

Electronic funds transfer applies to which of the following?

What is the name for comprehensive financial services packages offered by brokerage firms?

A savings alternative that pays a fixed rate of interest while keeping your funds on deposit for a contracted period of time that can range from 30 days to several years is called a

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters