Question 1

Lower interest rates on certificates of deposit are associated with

Accepted Answer

A)  higher account balances. 
B)  shorter maturities. 
C)  longer maturities. 
D)  a and b 
E)  a and c 
A)  higher account balances. 
B)  shorter maturities. 
C)  longer maturities. 
D)  a and b 
E)  a and c B

Question 2

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-You would expect to find an asset management account at a [commercial bank | brokerage firm].

Accepted Answer

B

Question 3

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-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

B

Question 4

Credit unions are

Accepted Answer

A)  mutual associations. 
B)  mortgage lenders. 
C)  available to the general public. 
D)  special commercial lenders. 
E)  not providers of insured deposits. 
A)  mutual associations. 
B)  mortgage lenders. 
C)  available to the general public. 
D)  special commercial lenders. 
E)  not providers of insured deposits.

Question 5

A regular savings account is a demand deposit.

Accepted Answer

A) True 
 B)False

Question 6

You have $900 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 60 business days.

Accepted Answer

A)  $ 0 
B)  $ 50 
C)  $450 
D)  $500 
E)  $900 
A)  $ 0 
B)  $ 50 
C)  $450 
D)  $500 
E)  $900

Question 7

Which of the following are important safeguards when using on-line banking?

Accepted Answer

A)  guarantees to protect you against losses 
B)  FDIC insurance 
C)  128-bit encryption 
D)  firewall to protect data 
E)  all of the above 
A)  guarantees to protect you against losses 
B)  FDIC insurance 
C)  128-bit encryption 
D)  firewall to protect data 
E)  all of the above

Question 8

Credit unions are mainly found in the northeastern U.S.

Accepted Answer

A) True 
 B)False

Question 9

Treasury bills are sold at a discount of their maturity value.

Accepted Answer

A) True 
 B)False

Question 10

Joint checking accounts typically imply the right of survivorship if one party should die.

Accepted Answer

A) True 
 B)False

Question 11

Compared to other depository financial institutions,credit unions

Accepted Answer

A)  are run to benefit their members. 
B)  pay higher interest on savings. 
C)  charge lower rates on loans. 
D)  all of the above are true. 
E)  none of the above are true. 
A)  are run to benefit their members. 
B)  pay higher interest on savings. 
C)  charge lower rates on loans. 
D)  all of the above are true. 
E)  none of the above are true.

Question 12

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 
A)  privacy 
B)  FDIC insurance 
C)  round-the-clock help 
D)  efficient start-up 
E)  use of float

Question 13

If one wanted to make monthly deposits to accumulate funds for future expenditures,a money market account would be an appropriate savings vehicle.

Accepted Answer

A) True 
 B)False

Question 14

A check you issued last week has been stolen.You can prevent it from being withdrawn from your account by an unauthorized person by

Accepted Answer

A)  writing a new check. 
B)  depositing the correct amount of money. 
C)  requesting a stop payment. 
D)  tearing up the check. 
E)  properly endorsing the check. 
A)  writing a new check. 
B)  depositing the correct amount of money. 
C)  requesting a stop payment. 
D)  tearing up the check. 
E)  properly endorsing the check.

Question 15

Series EE Savings bonds are now called Patriot Bonds.

Accepted Answer

A) True 
 B)False

Question 16

The Annual Percentage Yield is the same as the

Accepted Answer

A)  compound rate. 
B)  real rate. 
C)  simple rate. 
D)  effective rate. 
E)  nominal rate. 
A)  compound rate. 
B)  real rate. 
C)  simple rate. 
D)  effective rate. 
E)  nominal rate.

Question 17

Savings and loan associations usually offer non-interest bearing checking accounts.

Accepted Answer

A) True 
 B)False

Question 18

One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account.

Accepted Answer

A) True 
 B)False

Question 19

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Errors discovered during the reconciliation process are most likely to have been made by the [depositor | bank].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 20

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Both Treasury bills and Series EE savings bonds | Only Treasury bills] are bought at a discount.

Accepted Answer

The answer of Choose the word or phrase in [...

Lower interest rates on certificates of deposit are associated with

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You would expect to find an asset management account at a [commercial bank | brokerage firm].

Credit unions are

A regular savings account is a demand deposit.

You have $900 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 60 business days.

Which of the following are important safeguards when using on-line banking?

Credit unions are mainly found in the northeastern U.S.

Treasury bills are sold at a discount of their maturity value.

Joint checking accounts typically imply the right of survivorship if one party should die.

Compared to other depository financial institutions,credit unions

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

If one wanted to make monthly deposits to accumulate funds for future expenditures,a money market account would be an appropriate savings vehicle.

A check you issued last week has been stolen.You can prevent it from being withdrawn from your account by an unauthorized person by

Series EE Savings bonds are now called Patriot Bonds.

The Annual Percentage Yield is the same as the

Savings and loan associations usually offer non-interest bearing checking accounts.

One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Both Treasury bills and Series EE savings bonds | Only Treasury bills] are bought at a discount.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 4: Managing Your Cash and Savings

Lower interest rates on certificates of deposit are associated with

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You would expect to find an asset management account at a [commercial bank | brokerage firm].

Credit unions are

A regular savings account is a demand deposit.

You have $900 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 60 business days.

Which of the following are important safeguards when using on-line banking?

Credit unions are mainly found in the northeastern U.S.

Treasury bills are sold at a discount of their maturity value.

Joint checking accounts typically imply the right of survivorship if one party should die.

Compared to other depository financial institutions,credit unions

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

If one wanted to make monthly deposits to accumulate funds for future expenditures,a money market account would be an appropriate savings vehicle.

A check you issued last week has been stolen.You can prevent it from being withdrawn from your account by an unauthorized person by

Series EE Savings bonds are now called Patriot Bonds.

The Annual Percentage Yield is the same as the

Savings and loan associations usually offer non-interest bearing checking accounts.

One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Both Treasury bills and Series EE savings bonds | Only Treasury bills] are bought at a discount.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters