Question 1

The stated interest rate on your account is 5%,interest compounded monthly.If you deposit $50 each month,how much will you have in your account in 5 years? (Use time value tables or financial calculator)

Accepted Answer

A)   $3,000
B)   $3,050
C)   $3,200
D)   $3,400
E)   $4,350 D

Question 2

ATM transactions require the use of a PIN.

Accepted Answer

A) True 
 B)False  True

Question 3

The minimum denomination of T-bills you can buy is

Accepted Answer

A)   $1,000.
B)   $5,000.
C)   $10,000.
D)   $20,000.
E)   none of these. A

Question 4

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Dottie and Jasper have a joint checking account with rights of survivorship.If Jasper dies,his portion of the account [will | will not] automatically go to Dottie.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 5

Harry just received $2,000 for graduation.He plans on investing this money for five years at 8% compounded annually.If he accomplishes this,Harry will have in an ending balance of (Use time value tables or financial calculator)

Accepted Answer

A)   $2,160.
B)   $2,520.
C)   $2,608.
D)   $2,938.
E)   $3162.

Question 6

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card at the lake and forgot it was missing until her monthly statement came 26 days later.She found that $800 had been withdrawn from her savings account.The most Alice will be legally liable for assuming she notifies the bank at this point is

Accepted Answer

A)   $ 0.
B)   $ 25.
C)   $ 50.
D)   $500.
E)   $800.

Question 7

A certified check is written on the bank's account rather than on a customer's account.

Accepted Answer

A) True 
 B)False

Question 8

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[Anyone | Only those with an account at the bank] can purchase cashiers' checks.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 9

Asset management accounts are protected by the Federal Deposit Insurance Corporation.

Accepted Answer

A) True 
 B)False

Question 10

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 has is $100,000.

Accepted Answer

A) True 
 B)False

Question 11

Saving accounts are sometimes referred to as demand deposits.

Accepted Answer

A) True 
 B)False

Question 12

Sandy wants to go on a trip in 10 years.If she invests $1,000 per year at the end of each year for 10 years at a 12% interest rate,she will accumulate ____ to spend on her trip (Use time value table or financial calculator.)

Accepted Answer

A)   $10,610.
B)   $12,130.
C)   $15,105.
D)   $16,710.
E)   $17,549.

Question 13

When an S & L is a mutual association,it means that it is owned by the

Accepted Answer

A)   borrowers.
B)   creditors.
C)   depositors.
D)   management.
E)   local government.

Question 14

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-"For deposit only" would indicate a [blank | restricted] endorsement.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 15

Banks and other financial institutions insure the contents of safe-deposit boxes.

Accepted Answer

A) True 
 B)False

Question 16

Money Market Mutual Funds invest in long-term treasury securities and other types of bonds.

Accepted Answer

A) True 
 B)False

Question 17

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A [checking | savings] account is called a demand deposit account.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 18

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The least expensive method for banks to interact with their customers is [in person | ATM | online].

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 19

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The most common type of joint checking account would require the [signature of either party | signatures of both parties] on all checks.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 20

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-During the past few years,the number of financial institution failures per year has [risen | dropped].

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Exam 4: Managing Your Cash and Savings

The stated interest rate on your account is 5%,interest compounded monthly.If you deposit $50 each month,how much will you have in your account in 5 years? (Use time value tables or financial calculator)

ATM transactions require the use of a PIN.

The minimum denomination of T-bills you can buy is

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Dottie and Jasper have a joint checking account with rights of survivorship.If Jasper dies,his portion of the account [will | will not] automatically go to Dottie.

Harry just received $2,000 for graduation.He plans on investing this money for five years at 8% compounded annually.If he accomplishes this,Harry will have in an ending balance of (Use time value tables or financial calculator)

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

A certified check is written on the bank's account rather than on a customer's account.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Anyone | Only those with an account at the bank] can purchase cashiers' checks.

Asset management accounts are protected by the Federal Deposit Insurance Corporation.

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 has is $100,000.

Saving accounts are sometimes referred to as demand deposits.

Sandy wants to go on a trip in 10 years.If she invests $1,000 per year at the end of each year for 10 years at a 12% interest rate,she will accumulate ____ to spend on her trip (Use time value table or financial calculator.)

When an S & L is a mutual association,it means that it is owned by the

Choose the word or phrase in [ ] which will correctly complete the statement. Select -"For deposit only" would indicate a [blank | restricted] endorsement.

Banks and other financial institutions insure the contents of safe-deposit boxes.

Money Market Mutual Funds invest in long-term treasury securities and other types of bonds.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -A [checking | savings] account is called a demand deposit account.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -The least expensive method for banks to interact with their customers is [in person | ATM | online].

Choose the word or phrase in [ ] which will correctly complete the statement. Select -The most common type of joint checking account would require the [signature of either party | signatures of both parties] on all checks.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -During the past few years,the number of financial institution failures per year has [risen | dropped].