Question 1

Two advantages of carrying cash are that it's easy to spend and many times you can even recall where you spent it.

Accepted Answer

A) True 
 B)False

Question 2

The Truth in Savings Act of 1993

Accepted Answer

A) helps investors compare interest rates on investment options. 
B) requires that all institutions publish only annually compounded APRs. 
C) ensures that all investments are federally insured. 
D) All of the above are correct. 
A) helps investors compare interest rates on investment options. 
B) requires that all institutions publish only annually compounded APRs. 
C) ensures that all investments are federally insured. 
D) All of the above are correct.

Question 3

All of the following are advantages of MMDA's except

Accepted Answer

A) federally insured. 
B) rates below alternatives. 
C) earns interest. 
D) check-writing privileges. 
A) federally insured. 
B) rates below alternatives. 
C) earns interest. 
D) check-writing privileges.

Question 4

When you are considering different investment options and want to maximize your returns,be sure to compare the investments'

Accepted Answer

A) quoted rates. 
B) APRs. 
C) APYs. 
D) None of the above 
A) quoted rates. 
B) APRs. 
C) APYs. 
D) None of the above

Question 5

What is another name for an interest-bearing checking account?

Accepted Answer

A) DIFI 
B) IBC 
C) NOW 
D) CWI 
A) DIFI 
B) IBC 
C) NOW 
D) CWI

Question 6

Because liquid assets can be turned into cash quickly and with little loss,they have little risk associated with them and therefore provide a low rate of return for the consumer.

Accepted Answer

A) True 
 B)False

Question 7

Briefly describe each of the cash management alternatives discussed in this chapter.

Accepted Answer

a.Demand deposit - a type of checking ac

Question 8

List two ways to pay yourself first.

Accepted Answer

You can easily use cash-management alter

Question 9

Once you have examined a financial institution's service and convenience you will want to ask three questions about their cash management alternatives.What are they?

Accepted Answer

- What is the safety or risk i

Question 10

Describe the advantages of online and mobile banking.

Accepted Answer

Advantages of Online and Mobile Banking

Question 11

Another name for an interest bearing checking account is a(n)

Accepted Answer

A) WOW account. 
B) DIY account. 
C) NOW account. 
D) MMDA account. 
A) WOW account. 
B) DIY account. 
C) NOW account. 
D) MMDA account.

Question 12

A store-valued card,only used at one store for one purpose,is known as an "open-loop" card.

Accepted Answer

A) True 
 B)False

Question 13

Comprehensive financial services packages that offer checking accounts,debit and credit cards,loans and brokerage services are known as?

Accepted Answer

A) MMDA's 
B) Credit Unions 
C) MMMFs 
D) Asset management accounts 
A) MMDA's 
B) Credit Unions 
C) MMMFs 
D) Asset management accounts

Question 14

When using an ATM,keep in mind that

Accepted Answer

A) computer errors can occur. 
B) it is never safe to deposit cash in an ATM. 
C) you should report electronic transaction mistakes to the bank immediately. 
D) human problems in handling the transactions can occur. 
E) All of the above are correct. 
A) computer errors can occur. 
B) it is never safe to deposit cash in an ATM. 
C) you should report electronic transaction mistakes to the bank immediately. 
D) human problems in handling the transactions can occur. 
E) All of the above are correct.

Question 15

One way to think of liquid assets is as a reservoir,with money moving in as wages are received and moving out as living expenses are paid.

Accepted Answer

A) True 
 B)False

Question 16

Money-market mutual funds (MMMFs)provide an alternative to traditional liquid investments offered by financial institutions.What are/is the advantage(s)of an MMMF?

Accepted Answer

A) High interest rates 
B) Check-writing privileges 
C) Minimal risk 
D) Convenience-deposits made through payroll deductions 
E) All of the above are correct. 
A) High interest rates 
B) Check-writing privileges 
C) Minimal risk 
D) Convenience-deposits made through payroll deductions 
E) All of the above are correct.

Question 17

The deregulation of the 1980s has allowed brokerage firms to offer traditional banking services,and has also let banks offer services formerly found only at investment companies.

Accepted Answer

A) True 
 B)False

Question 18

Your bank may offer a line of credit,a credit card,or a link to your savings account to cover transactions when you overdraw your account.

Accepted Answer

A) True 
 B)False

Question 19

For John and Maile,money market deposit accounts may offer some advantages.Select the one or ones below that would be the most valuable to John and Maile.

Accepted Answer

A) They are insured. 
B) They may have limited checking privileges. 
C) They have relatively attractive rates of return. 
D) They have variable market interest rates. 
E) All of the above are advantages. 
A) They are insured. 
B) They may have limited checking privileges. 
C) They have relatively attractive rates of return. 
D) They have variable market interest rates. 
E) All of the above are advantages.

Question 20

Card-blocking occurs when you use a debit card (or credit card)to check into a hotel or rent a car and the anticipated expenses are blocked-in effect,placing a hold on the money.

Accepted Answer

A) True 
 B)False

Two advantages of carrying cash are that it's easy to spend and many times you can even recall where you spent it.

The Truth in Savings Act of 1993

All of the following are advantages of MMDA's except

When you are considering different investment options and want to maximize your returns,be sure to compare the investments'

What is another name for an interest-bearing checking account?

Because liquid assets can be turned into cash quickly and with little loss,they have little risk associated with them and therefore provide a low rate of return for the consumer.

Briefly describe each of the cash management alternatives discussed in this chapter.

List two ways to pay yourself first.

Once you have examined a financial institution's service and convenience you will want to ask three questions about their cash management alternatives.What are they?

Describe the advantages of online and mobile banking.

Another name for an interest bearing checking account is a(n)

A store-valued card,only used at one store for one purpose,is known as an "open-loop" card.

Comprehensive financial services packages that offer checking accounts,debit and credit cards,loans and brokerage services are known as?

When using an ATM,keep in mind that

One way to think of liquid assets is as a reservoir,with money moving in as wages are received and moving out as living expenses are paid.

Money-market mutual funds (MMMFs)provide an alternative to traditional liquid investments offered by financial institutions.What are/is the advantage(s)of an MMMF?

The deregulation of the 1980s has allowed brokerage firms to offer traditional banking services,and has also let banks offer services formerly found only at investment companies.

Your bank may offer a line of credit,a credit card,or a link to your savings account to cover transactions when you overdraw your account.

For John and Maile,money market deposit accounts may offer some advantages.Select the one or ones below that would be the most valuable to John and Maile.

Card-blocking occurs when you use a debit card (or credit card)to check into a hotel or rent a car and the anticipated expenses are blocked-in effect,placing a hold on the money.

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

Two advantages of carrying cash are that it's easy to spend and many times you can even recall where you spent it.

The Truth in Savings Act of 1993

All of the following are advantages of MMDA's except

When you are considering different investment options and want to maximize your returns,be sure to compare the investments'

What is another name for an interest-bearing checking account?

Because liquid assets can be turned into cash quickly and with little loss,they have little risk associated with them and therefore provide a low rate of return for the consumer.

Briefly describe each of the cash management alternatives discussed in this chapter.

List two ways to pay yourself first.

Once you have examined a financial institution's service and convenience you will want to ask three questions about their cash management alternatives.What are they?

Describe the advantages of online and mobile banking.

Another name for an interest bearing checking account is a(n)

A store-valued card,only used at one store for one purpose,is known as an "open-loop" card.

Comprehensive financial services packages that offer checking accounts,debit and credit cards,loans and brokerage services are known as?

When using an ATM,keep in mind that

One way to think of liquid assets is as a reservoir,with money moving in as wages are received and moving out as living expenses are paid.

Money-market mutual funds (MMMFs)provide an alternative to traditional liquid investments offered by financial institutions.What are/is the advantage(s)of an MMMF?

The deregulation of the 1980s has allowed brokerage firms to offer traditional banking services,and has also let banks offer services formerly found only at investment companies.

Your bank may offer a line of credit,a credit card,or a link to your savings account to cover transactions when you overdraw your account.

For John and Maile,money market deposit accounts may offer some advantages.Select the one or ones below that would be the most valuable to John and Maile.

Card-blocking occurs when you use a debit card (or credit card)to check into a hotel or rent a car and the anticipated expenses are blocked-in effect,placing a hold on the money.

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