Question 1

Which of the following statements is true regarding mutual savings banks?

Accepted Answer

A) Mutual savings banks provide financial services nationwide. 
B) Accounts in mutual savings banks are not federally insured. 
C) Mutual savings banks are quite similar to savings banks. 
D) Holding savings is the only financial service provided by mutual savings banks. 
A) Mutual savings banks provide financial services nationwide. 
B) Accounts in mutual savings banks are not federally insured. 
C) Mutual savings banks are quite similar to savings banks. 
D) Holding savings is the only financial service provided by mutual savings banks.

Question 2

The safest type of endorsement on a check is a blank endorsement.

Accepted Answer

A) True 
 B)False

Question 3

A cashier's check is drawn on the account of the financial institution itself.

Accepted Answer

A) True 
 B)False

Question 4

Because certificates of deposit require that the deposited funds remain on deposit for a specified period of time they are subject to

Accepted Answer

A) interest rate risk. 
B) fixed withdrawal risk. 
C) market risk. 
D) systemic risk. 
A) interest rate risk. 
B) fixed withdrawal risk. 
C) market risk. 
D) systemic risk.

Question 5

Interest paid on deposits in financial institutions is based on how much money is on deposit and

Accepted Answer

A) how the balance is determined. 
B) the interest rate applied. 
C) the frequency of compounding. 
D) all of these. 
A) how the balance is determined. 
B) the interest rate applied. 
C) the frequency of compounding. 
D) all of these.

Question 6

Which of the following sets NOW accounts apart from other checking accounts?

Accepted Answer

A) They are safer. 
B) They are time deposits. 
C) They can be accessed by a debit card. 
D) They pay interest. 
A) They are safer. 
B) They are time deposits. 
C) They can be accessed by a debit card. 
D) They pay interest.

Question 7

The interest rate you earn on your checking and savings account can vary with the amount you have in the accounts.

Accepted Answer

A) True 
 B)False

Question 8

Electronic funds transfers (EFTs)

Accepted Answer

A) can transfer funds electronically. 
B) can be used in place of checks. 
C) are paperless. 
D) all of these. 
A) can transfer funds electronically. 
B) can be used in place of checks. 
C) are paperless. 
D) all of these.

Question 9

Institutions have a rule requiring that savings account holders give 30 to 60 days' notice for withdrawals.

Accepted Answer

A) True 
 B)False

Question 10

Depositors are the owners of

Accepted Answer

A) credit unions. 
B) mutual savings banks. 
C) savings banks. 
D) credit unions and mutual savings banks. 
A) credit unions. 
B) mutual savings banks. 
C) savings banks. 
D) credit unions and mutual savings banks.

Question 11

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

Accepted Answer

A) Account holders must give 30 to 60 days' notice for withdrawals 
B) Account holders are provided with printed receipts to document their account transactions. 
C) Account holders are provided with printed receipts to document their account transactions 
D) No fees are assessed as long as a low minimum balance is maintained. 
A) Account holders must give 30 to 60 days' notice for withdrawals 
B) Account holders are provided with printed receipts to document their account transactions. 
C) Account holders are provided with printed receipts to document their account transactions 
D) No fees are assessed as long as a low minimum balance is maintained.

Question 12

Which of the following are examples of monetary assets?

Accepted Answer

A) Cash on hand, corporate stock, and insurance 
B) Money market accounts, cash on hand, and certificates of deposit 
C) Savings accounts, interest-earning checking accounts, and corporate stock 
D) Real estate, money market accounts, interest-earning checking accounts 
A) Cash on hand, corporate stock, and insurance 
B) Money market accounts, cash on hand, and certificates of deposit 
C) Savings accounts, interest-earning checking accounts, and corporate stock 
D) Real estate, money market accounts, interest-earning checking accounts

Question 13

A stock brokerage firm is a licensed financial institution that

Accepted Answer

A) buys and sells stocks and bonds. 
B) provides investment alternatives. 
C) offers money market mutual fund accounts. 
D) all of these. 
A) buys and sells stocks and bonds. 
B) provides investment alternatives. 
C) offers money market mutual fund accounts. 
D) all of these.

Question 14

Money withdrawn from a CD before the end of the specified time period is subject to interest penalties.

Accepted Answer

A) True 
 B)False

Question 15

The speed and ease by which an asset can be converted into cash is referred to as its

Accepted Answer

A) risk. 
B) liquidity. 
C) diversity. 
D) safety. 
A) risk. 
B) liquidity. 
C) diversity. 
D) safety.

Question 16

When a customer uses a debit card to pay for a purchase,funds must be paid as of the next due date on the account.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following accounts could accurately be called a money market account?

Accepted Answer

A) Share draft account 
B) Asset management account 
C) NOW account 
D) Series EE savings bond 
A) Share draft account 
B) Asset management account 
C) NOW account 
D) Series EE savings bond

Question 18

Which type of cash management instrument could also be used by a college student to access his or her meal plan?

Accepted Answer

A) Credit card 
B) Debit card 
C) Stored-value card 
D) Stored-value card. 
A) Credit card 
B) Debit card 
C) Stored-value card 
D) Stored-value card.

Question 19

CD laddering is a technique that smoothes out the fluctuations in interest rates and lowers inflation rate risk.

Accepted Answer

A) True 
 B)False

Question 20

The more frequent the compounding,the greater the effective return for the saver.

Accepted Answer

A) True 
 B)False

Which of the following statements is true regarding mutual savings banks?

The safest type of endorsement on a check is a blank endorsement.

A cashier's check is drawn on the account of the financial institution itself.

Because certificates of deposit require that the deposited funds remain on deposit for a specified period of time they are subject to

Interest paid on deposits in financial institutions is based on how much money is on deposit and

Which of the following sets NOW accounts apart from other checking accounts?

The interest rate you earn on your checking and savings account can vary with the amount you have in the accounts.

Electronic funds transfers (EFTs)

Institutions have a rule requiring that savings account holders give 30 to 60 days' notice for withdrawals.

Depositors are the owners of

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

Which of the following are examples of monetary assets?

A stock brokerage firm is a licensed financial institution that

Money withdrawn from a CD before the end of the specified time period is subject to interest penalties.

The speed and ease by which an asset can be converted into cash is referred to as its

When a customer uses a debit card to pay for a purchase,funds must be paid as of the next due date on the account.

Which of the following accounts could accurately be called a money market account?

Which type of cash management instrument could also be used by a college student to access his or her meal plan?

CD laddering is a technique that smoothes out the fluctuations in interest rates and lowers inflation rate risk.

The more frequent the compounding,the greater the effective return for the saver.

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

Which of the following statements is true regarding mutual savings banks?

The safest type of endorsement on a check is a blank endorsement.

A cashier's check is drawn on the account of the financial institution itself.

Because certificates of deposit require that the deposited funds remain on deposit for a specified period of time they are subject to

Interest paid on deposits in financial institutions is based on how much money is on deposit and

Which of the following sets NOW accounts apart from other checking accounts?

The interest rate you earn on your checking and savings account can vary with the amount you have in the accounts.

Electronic funds transfers (EFTs)

Institutions have a rule requiring that savings account holders give 30 to 60 days' notice for withdrawals.

Depositors are the owners of

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

Which of the following are examples of monetary assets?

A stock brokerage firm is a licensed financial institution that

Money withdrawn from a CD before the end of the specified time period is subject to interest penalties.

The speed and ease by which an asset can be converted into cash is referred to as its

When a customer uses a debit card to pay for a purchase,funds must be paid as of the next due date on the account.

Which of the following accounts could accurately be called a money market account?

Which type of cash management instrument could also be used by a college student to access his or her meal plan?

CD laddering is a technique that smoothes out the fluctuations in interest rates and lowers inflation rate risk.

The more frequent the compounding,the greater the effective return for the saver.

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