Question 1

A share draft account is the credit union version of a NOW account.

Accepted Answer

A) True 
 B)False

Question 2

College students who are independent of their parents may qualify for very low-cost lifeline banking accounts.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following does not apply to monetary assets?

Accepted Answer

A) Low risk 
B) High liquidity 
C) High return 
D) All of these 
A) Low risk 
B) High liquidity 
C) High return 
D) All of these

Question 4

Ronald's gross income is $60,000,and his living expenses consume 75 percent of his gross income.According to financial experts,Ronald should set aside ____ to cover emergencies.

Accepted Answer

A) $22,500 to $45,000 
B) $5,000 to $10,000 
C) $15,000 to $30,000 
D) $11,250 to $22,500 
A) $22,500 to $45,000 
B) $5,000 to $10,000 
C) $15,000 to $30,000 
D) $11,250 to $22,500

Question 5

A checking account that does not pay interest is called a

Accepted Answer

A) savings account. 
B) money-market deposit account. 
C) NOW account. 
D) demand-deposit account. 
A) savings account. 
B) money-market deposit account. 
C) NOW account. 
D) demand-deposit account.

Question 6

Andy and Marjorie have very little will power when it comes to spending.They want to put their savings in an instrument that cannot be accessed by their ATM card.Which instrument would meet this criterion?

Accepted Answer

A) Savings account 
B) Super NOW account 
C) Money market mutual fund 
D) NOW account 
A) Savings account 
B) Super NOW account 
C) Money market mutual fund 
D) NOW account

Question 7

Which of the following is the best advice for people who want to start saving regularly?

Accepted Answer

A) Fools and their money are soon parted. 
B) Pay yourself first. 
C) Marry in haste, respect at leisure. 
D) There's no fool like an old fool. 
A) Fools and their money are soon parted. 
B) Pay yourself first. 
C) Marry in haste, respect at leisure. 
D) There's no fool like an old fool.

Question 8

Which of the following is not a benefit of a savings account?

Accepted Answer

A) A way to save for your child's education 
B) Builds funds for large, irregular expenses 
C) Protection against inflation 
D) A way to achieve short-term savings goals 
A) A way to save for your child's education 
B) Builds funds for large, irregular expenses 
C) Protection against inflation 
D) A way to achieve short-term savings goals

Question 9

Monetary asset management focuses primarily on funds kept readily available for investments.

Accepted Answer

A) True 
 B)False

Question 10

Retail transaction fees can be assessed when you make a purchase via a point-of-sale terminal at a retail store.

Accepted Answer

A) True 
 B)False

Question 11

If your checking account balance drops to less than perhaps $50 at any point during a month you would likely be better off with a minimum deposit account in order to avoid fees.

Accepted Answer

A) True 
 B)False

Question 12

The monetary asset management service provided by a mutual fund is a

Accepted Answer

A) money market mutual fund accounts. 
B) money market mutual fund accounts 
C) savings accounts. 
D) All of these. 
A) money market mutual fund accounts. 
B) money market mutual fund accounts 
C) savings accounts. 
D) All of these.

Question 13

ATM cardholders are liable for only the first $50 of unauthorized use if they notify the issuing company within five business days after the loss or theft of their card or PIN.

Accepted Answer

A) True 
 B)False

Question 14

Because the focus is on building a relationship you can wait until after "popping the question" to discuss financial issues.

Accepted Answer

A) True 
 B)False

Question 15

"Opt-in" overdraft/bounce protection can be very helpful if the institution will honor your debit card even if you have insufficient funds.

Accepted Answer

A) True 
 B)False

Question 16

To reduce interest rate risk and smooth out interest rate fluctuations when purchasing certificates of deposit (CDs) you can engage in

Accepted Answer

A) CD laddering. 
B) CD layering. 
C) grace period management. 
D) money-market arbitrage. 
A) CD laddering. 
B) CD layering. 
C) grace period management. 
D) money-market arbitrage.

Question 17

Checking accounts that pay no interest are called NOW accounts.

Accepted Answer

A) True 
 B)False

Question 18

Money deposited in mutual funds is insured by the federal government.

Accepted Answer

A) True 
 B)False

Question 19

A mutual fund is an investment company that raises money by selling shares to the public and then invests that money in a diversified portfolio of investments.

Accepted Answer

A) True 
 B)False

Question 20

Credit unions with federal charters have their accounts insured through the FDIC.

Accepted Answer

A) True 
 B)False

A share draft account is the credit union version of a NOW account.

College students who are independent of their parents may qualify for very low-cost lifeline banking accounts.

Which of the following does not apply to monetary assets?

Ronald's gross income is $60,000,and his living expenses consume 75 percent of his gross income.According to financial experts,Ronald should set aside ____ to cover emergencies.

A checking account that does not pay interest is called a

Andy and Marjorie have very little will power when it comes to spending.They want to put their savings in an instrument that cannot be accessed by their ATM card.Which instrument would meet this criterion?

Which of the following is the best advice for people who want to start saving regularly?

Which of the following is not a benefit of a savings account?

Monetary asset management focuses primarily on funds kept readily available for investments.

Retail transaction fees can be assessed when you make a purchase via a point-of-sale terminal at a retail store.

If your checking account balance drops to less than perhaps $50 at any point during a month you would likely be better off with a minimum deposit account in order to avoid fees.

The monetary asset management service provided by a mutual fund is a

ATM cardholders are liable for only the first $50 of unauthorized use if they notify the issuing company within five business days after the loss or theft of their card or PIN.

Because the focus is on building a relationship you can wait until after "popping the question" to discuss financial issues.

"Opt-in" overdraft/bounce protection can be very helpful if the institution will honor your debit card even if you have insufficient funds.

To reduce interest rate risk and smooth out interest rate fluctuations when purchasing certificates of deposit (CDs) you can engage in

Checking accounts that pay no interest are called NOW accounts.

Money deposited in mutual funds is insured by the federal government.

A mutual fund is an investment company that raises money by selling shares to the public and then invests that money in a diversified portfolio of investments.

Credit unions with federal charters have their accounts insured through the FDIC.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 5: Managing Checking and Savings Accounts

A share draft account is the credit union version of a NOW account.

College students who are independent of their parents may qualify for very low-cost lifeline banking accounts.

Which of the following does not apply to monetary assets?

Ronald's gross income is $60,000,and his living expenses consume 75 percent of his gross income.According to financial experts,Ronald should set aside ____ to cover emergencies.

A checking account that does not pay interest is called a

Andy and Marjorie have very little will power when it comes to spending.They want to put their savings in an instrument that cannot be accessed by their ATM card.Which instrument would meet this criterion?

Which of the following is the best advice for people who want to start saving regularly?

Which of the following is not a benefit of a savings account?

Monetary asset management focuses primarily on funds kept readily available for investments.

Retail transaction fees can be assessed when you make a purchase via a point-of-sale terminal at a retail store.

If your checking account balance drops to less than perhaps $50 at any point during a month you would likely be better off with a minimum deposit account in order to avoid fees.

The monetary asset management service provided by a mutual fund is a

ATM cardholders are liable for only the first $50 of unauthorized use if they notify the issuing company within five business days after the loss or theft of their card or PIN.

Because the focus is on building a relationship you can wait until after "popping the question" to discuss financial issues.

"Opt-in" overdraft/bounce protection can be very helpful if the institution will honor your debit card even if you have insufficient funds.

To reduce interest rate risk and smooth out interest rate fluctuations when purchasing certificates of deposit (CDs) you can engage in

Checking accounts that pay no interest are called NOW accounts.

Money deposited in mutual funds is insured by the federal government.

A mutual fund is an investment company that raises money by selling shares to the public and then invests that money in a diversified portfolio of investments.

Credit unions with federal charters have their accounts insured through the FDIC.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters