Question 1

Bank ATM charges may be substantial if you make many transactions monthly and use out-of-network machines.

Accepted Answer

A) True 
 B)False

Question 2

The risk-free rate on borrowed funds is determined by the ________ and ________ of funds.

Accepted Answer

The answer of The risk-free rate on borrowed funds is...

Question 3

A financial conglomerate offers a diverse set of services that include which of the following?

Accepted Answer

A) Credit cards 
B) Personal loans 
C) Brokerage subsidiary 
D) All of the above. 
A) Credit cards 
B) Personal loans 
C) Brokerage subsidiary 
D) All of the above.

Question 4

The term structure of interest rates is the relationship between the maturities of ________ debt securities and the annualized yields offered on those securities.

Accepted Answer

A) risk-free 
B) risk premium 
C) specific return 
D) nominal return 
A) risk-free 
B) risk premium 
C) specific return 
D) nominal return

Question 5

Allison is a recent college graduate and is looking for a bank in which to open a checking account.She has narrowed her choice to two.First National requires a $100 minimum deposit and charges 15 cents per check.City Bank requires a $500 minimum deposit,but charges only 5 cents per check.Both pay the same interest rate on the minimum deposit.Allison estimates that she will write 40 checks per month.Assuming that Allison could invest any funds not required for a minimum deposit in a one-year CD paying 6 percent,what would be the monthly cost to Allison for First National and City Bank? Which should she choose?
(a)First National -$6.00; City Bank -$2.00
(b)First National -$6.00; City Bank -$4.00
(c)First National -$6.00; City Bank -$26.00
(d)First National -$6.00; City Bank -$8.00

Accepted Answer

First National -15 cents × 40

Question 6

If the government borrows funds to finance a military build-up in the Middle East,this will cause a

Accepted Answer

A) shift in the demand for funds. 
B) shift in the supply of funds. 
C) shift in monetary policy. 
D) shift in open-market operations. 
A) shift in the demand for funds. 
B) shift in the supply of funds. 
C) shift in monetary policy. 
D) shift in open-market operations.

Question 7

List four types of financial institutions that you have made use of or plan to deal with in the future.

Accepted Answer

Finance companies,securities f

Question 8

The yield curve is typically ________,meaning that the annualized interest is higher for debt securities with longer terms to maturity.

Accepted Answer

A) upward sloping 
B) horizontal 
C) downward sloping 
D) vertical 
A) upward sloping 
B) horizontal 
C) downward sloping 
D) vertical

Question 9

The interest rate is composed of the ________ and the ________.

Accepted Answer

A) risk-free rate; risk discount 
B) risk-free rate; risk premium 
C) risk-free rate; default risk premium 
D) None of the above. 
A) risk-free rate; risk discount 
B) risk-free rate; risk premium 
C) risk-free rate; default risk premium 
D) None of the above.

Question 10

A risk-free rate is a return on an investment that is guaranteed for a specified period.

Accepted Answer

A) True 
 B)False

Question 11

Deposits at commercial banks are insured up to ________ per depositor by the Federal Deposit Insurance Corporation (FDIC).

Accepted Answer

A) $100,000 
B) $75,000 
C) $250,000 
D) $150,000 
A) $100,000 
B) $75,000 
C) $250,000 
D) $150,000

Question 12

The relationship between risk and return

Accepted Answer

A) is positive. 
B) is negative. 
C) is inverse. 
D) has no correlation. 
A) is positive. 
B) is negative. 
C) is inverse. 
D) has no correlation.

Question 13

ATM cards are declining in use because they are expensive and the machines are becoming more difficult to locate.

Accepted Answer

A) True 
 B)False

Question 14

Organizations that offer a diverse set of financial services to individuals and firms are ________.

Accepted Answer

financial

Question 15

Which of the following is not an advantage of using ATM cards?

Accepted Answer

A) It is easy and convenient to withdraw funds 
B) Your total banking expenses are likely to be lower 
C) You have access to your account any time of the day 
D) You can bank at remote locations all over the world 
A) It is easy and convenient to withdraw funds 
B) Your total banking expenses are likely to be lower 
C) You have access to your account any time of the day 
D) You can bank at remote locations all over the world

Bank ATM charges may be substantial if you make many transactions monthly and use out-of-network machines.

The risk-free rate on borrowed funds is determined by the and of funds.

A financial conglomerate offers a diverse set of services that include which of the following?

The term structure of interest rates is the relationship between the maturities of ________ debt securities and the annualized yields offered on those securities.

If the government borrows funds to finance a military build-up in the Middle East,this will cause a

List four types of financial institutions that you have made use of or plan to deal with in the future.

The yield curve is typically ________,meaning that the annualized interest is higher for debt securities with longer terms to maturity.

The interest rate is composed of the and the .

A risk-free rate is a return on an investment that is guaranteed for a specified period.

Deposits at commercial banks are insured up to ________ per depositor by the Federal Deposit Insurance Corporation (FDIC).

The relationship between risk and return

ATM cards are declining in use because they are expensive and the machines are becoming more difficult to locate.

Organizations that offer a diverse set of financial services to individuals and firms are ________.

Which of the following is not an advantage of using ATM cards?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

Exam 5: Banking and Interest Rates

Bank ATM charges may be substantial if you make many transactions monthly and use out-of-network machines.

The risk-free rate on borrowed funds is determined by the ________ and ________ of funds.

A financial conglomerate offers a diverse set of services that include which of the following?

The term structure of interest rates is the relationship between the maturities of ________ debt securities and the annualized yields offered on those securities.

If the government borrows funds to finance a military build-up in the Middle East,this will cause a

List four types of financial institutions that you have made use of or plan to deal with in the future.

The yield curve is typically ________,meaning that the annualized interest is higher for debt securities with longer terms to maturity.

The interest rate is composed of the ________ and the ________.

A risk-free rate is a return on an investment that is guaranteed for a specified period.

Deposits at commercial banks are insured up to ________ per depositor by the Federal Deposit Insurance Corporation (FDIC).

The relationship between risk and return

ATM cards are declining in use because they are expensive and the machines are becoming more difficult to locate.

Organizations that offer a diverse set of financial services to individuals and firms are ________.

Which of the following is not an advantage of using ATM cards?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

The risk-free rate on borrowed funds is determined by the and of funds.

The interest rate is composed of the and the .