Question 1

Which of the following is not an advantage of a CD as a cash management alternative for John and Maile?

Accepted Answer

A) High interest rate 
B) Fixed rate of interest 
C) It is insured. 
D) Pays money market interest rates 
E) Lends itself well to automated payroll deduction plan 
A) High interest rate 
B) Fixed rate of interest 
C) It is insured. 
D) Pays money market interest rates 
E) Lends itself well to automated payroll deduction plan

Question 2

Is EFT always a good thing? List some potential problems with EFT.

Accepted Answer

EFT makes our lives easier and better as

Question 3

Liquid assets allow you to cover unplanned expenses without having to interrupt your long-term investments or liquidate any tangible assets.

Accepted Answer

A) True 
 B)False

Question 4

When college students start saving early

Accepted Answer

A) in an account earning interest,they immediately put their money to work. 
B) by automating their savings,they are less likely to spend money. 
C) they can take advantage of the time value of money and achieve their financial goals. 
D) all of the above. 
A) in an account earning interest,they immediately put their money to work. 
B) by automating their savings,they are less likely to spend money. 
C) they can take advantage of the time value of money and achieve their financial goals. 
D) all of the above.

Question 5

List one advantage to paying bills automatically.

Accepted Answer

Using automatic withdrawals to pay your

Question 6

The National Credit Union Association is a federal agency that insures deposits at credit unions.

Accepted Answer

A) True 
 B)False

Question 7

Pick the advantage of a certificates of deposit from this list of possibilities.

Accepted Answer

A) The interest paid is compounded daily. 
B) Early withdrawals after 30 days do not incur a penalty. 
C) Interest rates are generally higher than typical savings accounts. 
D) They earn the APY and not the APR. 
A) The interest paid is compounded daily. 
B) Early withdrawals after 30 days do not incur a penalty. 
C) Interest rates are generally higher than typical savings accounts. 
D) They earn the APY and not the APR.

Question 8

Which one of the following is not a consideration in determining cost of a financial institution?

Accepted Answer

A) Rates 
B) Fees 
C) Location 
D) Per-check charges 
A) Rates 
B) Fees 
C) Location 
D) Per-check charges

Question 9

What would be your suggestion for the next account John and Maile should open?

Accepted Answer

A) Series EE bonds 
B) Certificates of deposit 
C) Money market deposit account 
D) Money market mutual funds 
E) Both B and C 
A) Series EE bonds 
B) Certificates of deposit 
C) Money market deposit account 
D) Money market mutual funds 
E) Both B and C

Question 10

How is Christopher doing with his cash management?

Accepted Answer

A) He is doing pretty well since he has a lot of cash in his checking account. 
B) He is doing pretty well since he pays his credit cards in full every month. 
C) He is not maximizing his returns on his liquid assets. 
D) He has a good checking account. 
E) All but C are correct answers. 
A) He is doing pretty well since he has a lot of cash in his checking account. 
B) He is doing pretty well since he pays his credit cards in full every month. 
C) He is not maximizing his returns on his liquid assets. 
D) He has a good checking account. 
E) All but C are correct answers.

Question 11

Credit unions and Internet-only banks typically offer

Accepted Answer

A) more attractive interest rates to both borrowers and savers. 
B) less attractive interest rates to both borrowers and savers. 
C) the same interest rates as brick-and-mortar banks. 
D) Both A and C are correct. 
A) more attractive interest rates to both borrowers and savers. 
B) less attractive interest rates to both borrowers and savers. 
C) the same interest rates as brick-and-mortar banks. 
D) Both A and C are correct.

Question 12

Financial institutions that provide traditional checking and savings accounts are commonly referred to as

Accepted Answer

A) deposit-type financial institutions. 
B) nondeposit-type financial institutions. 
C) personal depository institutions. 
D) financial brokerage companies. 
E) None of the above are correct. 
A) deposit-type financial institutions. 
B) nondeposit-type financial institutions. 
C) personal depository institutions. 
D) financial brokerage companies. 
E) None of the above are correct.

Question 13

A debit card is the same thing as a smart card.

Accepted Answer

A) True 
 B)False

Question 14

A debit card is something of a cross between a credit card and a checking account.

Accepted Answer

A) True 
 B)False

Question 15

After balancing his checking account,what will his current balance be today?

Accepted Answer

A) $3,950 
B) $7,550 
C) $3,550 
D) $7,150 
E) $9,500 
A) $3,950 
B) $7,550 
C) $3,550 
D) $7,150 
E) $9,500

Question 16

List the common deposit-type financial institutions.

Accepted Answer

- Commercial banks
-

Question 17

You are considering the purchase of one of two different investments.Investment A is tax exempt and pays 6%.Investment B is taxable and pays 8.33%.You live in a state that imposes no income taxes and are in a 28% federal tax bracket and want to earn the highest after tax return possible.Which of the following is true? (round to two decimal places)

Accepted Answer

A) Investment A is preferred. 
B) Investment B is preferred. 
C) Investments A and B have identical after tax yields. 
D) Investments A and B have identical APYs. 
E) Not enough information has been provided. 
A) Investment A is preferred. 
B) Investment B is preferred. 
C) Investments A and B have identical after tax yields. 
D) Investments A and B have identical APYs. 
E) Not enough information has been provided.

Question 18

A check drafted on the financial institution's account is a(n)

Accepted Answer

A) certified check. 
B) traveler's check. 
C) bank check. 
D) cashier's check. 
A) certified check. 
B) traveler's check. 
C) bank check. 
D) cashier's check.

Question 19

Brenda White had her bank certify one of her personal checks as being good.Which type of check has been issued?

Accepted Answer

A) Traveler's check 
B) Certified check 
C) Cashier's check 
D) Money order 
E) Audited check 
A) Traveler's check 
B) Certified check 
C) Cashier's check 
D) Money order 
E) Audited check

Question 20

Nondeposit-type financial institutions are commonly referred to as mutual funds and brokerage firms.

Accepted Answer

A) True 
 B)False

Which of the following is not an advantage of a CD as a cash management alternative for John and Maile?

Is EFT always a good thing? List some potential problems with EFT.

Liquid assets allow you to cover unplanned expenses without having to interrupt your long-term investments or liquidate any tangible assets.

When college students start saving early

List one advantage to paying bills automatically.

The National Credit Union Association is a federal agency that insures deposits at credit unions.

Pick the advantage of a certificates of deposit from this list of possibilities.

Which one of the following is not a consideration in determining cost of a financial institution?

What would be your suggestion for the next account John and Maile should open?

How is Christopher doing with his cash management?

Credit unions and Internet-only banks typically offer

Financial institutions that provide traditional checking and savings accounts are commonly referred to as

A debit card is the same thing as a smart card.

A debit card is something of a cross between a credit card and a checking account.

After balancing his checking account,what will his current balance be today?

List the common deposit-type financial institutions.

A check drafted on the financial institution's account is a(n)

Brenda White had her bank certify one of her personal checks as being good.Which type of check has been issued?

Nondeposit-type financial institutions are commonly referred to as mutual funds and brokerage firms.

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 is not an advantage of a CD as a cash management alternative for John and Maile?

Is EFT always a good thing? List some potential problems with EFT.

Liquid assets allow you to cover unplanned expenses without having to interrupt your long-term investments or liquidate any tangible assets.

When college students start saving early

List one advantage to paying bills automatically.

The National Credit Union Association is a federal agency that insures deposits at credit unions.

Pick the advantage of a certificates of deposit from this list of possibilities.

Which one of the following is not a consideration in determining cost of a financial institution?

What would be your suggestion for the next account John and Maile should open?

How is Christopher doing with his cash management?

Credit unions and Internet-only banks typically offer

Financial institutions that provide traditional checking and savings accounts are commonly referred to as

A debit card is the same thing as a smart card.

A debit card is something of a cross between a credit card and a checking account.

After balancing his checking account,what will his current balance be today?

List the common deposit-type financial institutions.

A check drafted on the financial institution's account is a(n)

Brenda White had her bank certify one of her personal checks as being good.Which type of check has been issued?

Nondeposit-type financial institutions are commonly referred to as mutual funds and brokerage firms.

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