Exam 5: Managing Checking and Savings Accounts

Everyone should use an asset management account to simplify their monetary asset management.

Bump-up CDs allow savers to bump up the interest rate once to a higher market rate.

An individual checking or savings account can be set up to go automatically to another person when the depositor dies if it is set up as a(n)

A joint account that gives each owner access to the account (without the other's signature) is called a joint tenancy account with right of survivorship.

Which of the following could be the most expensive way of protecting yourself from fees should you overdraft your checking account?

A POS terminal is an electronic computer terminal located at a store or other merchant location that allows the customer to

State-chartered credit unions are often insured by

Which of the following might be used by an employer to pay an employee?

In community property states,most of the money and property acquired during a marriage are legally considered the property of

____ typically pay the highest rates of interest on savings.

Amy and Lance are newlyweds.This is Lance's second marriage.Because of problems that occurred before his divorce (his ex-wife took all the money out of their joint accounts),he is more cautious than most about setting up joint accounts.Which type of account would you recommend for Amy and Lance?

Which of the following certificates of deposit is not covered by bank deposit insurance offered by the FDIC?

Which of the following types of payment instruments could you get at your local post office?

It is possible to lose money on a certificate of deposit if the early withdrawal penalty is greater than the interest earned.

Diana and Kim are roommates in college and Diana owes Kim for last month's rent.When Diana receives a check from her mother for the rent,what type of endorsement should Diana use to sign this check over to Kim?

Molly went to her bank,gave the teller $200 plus a small fee,and received a check drawn on the financial institution itself.What kind of checks were these?

Your losses from a stolen ATM card are unlimited if you fail to report unauthorized use within 30 days after your statement is mailed to you.

Mutual savings banks are called "mutual" because the depositors own the institution and share in the earnings.

Some stored value cards can be "reloaded" with additional funds.

Both commercial bank and savings bank accounts are insured by the FDIC through a fund called the