Question 1

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[All | Some] banks must return canceled checks with the monthly statement although most are abandoning this practice.

Accepted Answer

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

Question 2

Janice Sanders plans on saving $12,000 for 3 years until she returns to college for her master's degree in personal financial planning.She would like to receive a fixed rate of return over that period.Which of the following would you recommend?

Accepted Answer

A)  money market deposit account 
B)  1-year certificate of deposit 
C)  3-year certificate of deposit 
D)  Series EE US savings bond 
E)  b or c

Question 3

From the bank's perspective,ATM transactions are more costly than on-line banking transactions.

Accepted Answer

A) True 
 B)False

Question 4

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-It costs financial institutions more for their customers to perform [ATM transactions | Internet transactions.]

Accepted Answer

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

Question 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A bank customer would typically expect to receive higher interest rates on her [certificate of deposit | money market deposit account].

Accepted Answer

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

Question 6

You can stop payment when you purchase an item with your debit card.

Accepted Answer

A) True 
 B)False

Question 7

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-An asset management account is likely to require a minimum investment of at least [$1,000 | $5,000].

Accepted Answer

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

Question 8

Savings banks are mainly found in the northeastern U.S.

Accepted Answer

A) True 
 B)False

Question 9

There are numerous advantages and disadvantages of on-line 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

Question 10

Low interest rates are helpful in

Accepted Answer

A)  facilitating a greater supply of money for borrowers. 
B)  reducing the service cost on our national debt. 
C)  encouraging a higher savings rate 
D)  a and b 
E)  None of the above

Question 11

Which of the following accounts has special tax advantages under certain conditions when used to fund qualified college education expenses?

Accepted Answer

A)  certificate of deposit 
B)  U.S.Treasury bill 
C)  US EE savings bonds 
D)  money market mutual fund 
E)  passbook savings

Question 12

A check you wrote to buy shoes last week has not yet been processed by the bank.It is said to be

Accepted Answer

A)  outstanding. 
B)  in transit. 
C)  endorsed. 
D)  certified. 
E)  subtracted.

Question 13

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A bank customer would expect to be able to write checks on his regular checking account and on his [certificate of deposit | money market fund].

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select -[All | Some] banks must return canceled checks with the monthly statement although most are abandoning this practice.

Janice Sanders plans on saving $12,000 for 3 years until she returns to college for her master's degree in personal financial planning.She would like to receive a fixed rate of return over that period.Which of the following would you recommend?

From the bank's perspective,ATM transactions are more costly than on-line banking transactions.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -It costs financial institutions more for their customers to perform [ATM transactions | Internet transactions.]

Choose the word or phrase in [ ] which will correctly complete the statement. Select -A bank customer would typically expect to receive higher interest rates on her [certificate of deposit | money market deposit account].

You can stop payment when you purchase an item with your debit card.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -An asset management account is likely to require a minimum investment of at least [$1,000 | $5,000].

Savings banks are mainly found in the northeastern U.S.

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

Low interest rates are helpful in

Which of the following accounts has special tax advantages under certain conditions when used to fund qualified college education expenses?

A check you wrote to buy shoes last week has not yet been processed by the bank.It is said to be

Choose the word or phrase in [ ] which will correctly complete the statement. Select -A bank customer would expect to be able to write checks on his regular checking account and on his [certificate of deposit | money market fund].