Question 1

A personal identification number is not needed for which of the following forms of electronic funds transfers?

Accepted Answer

A)  ​ATM transactions 
B)  ​Direct deposits 
C)  ​Debit cards 
D)  ​Point-of-sale transactions 
A)  ​ATM transactions 
B)  ​Direct deposits 
C)  ​Debit cards 
D)  ​Point-of-sale transactions

Question 2

If the balance on either a super NOW account or a money market deposit account falls below a specified level,the account generally earns interest at the lower rate paid on a regular NOW account.

Accepted Answer

A) True 
 B)False

Question 3

Most homeowner's and renter's insurance policies partially cover the liability for theft of both debit and credit cards.

Accepted Answer

A) True 
 B)False

Question 4

If Gus believes interest rates are going to fall in the near future and remain low for several years,Gus should now

Accepted Answer

A)  ​invest in a variable-rate certificate of deposit. 
B)  ​invest in a long-term,fixed-rate certificate of deposit. 
C)  ​invest in a short-term,fixed-rate certificate of deposit. 
D)  ​bury his money in fruit jars in the back yard. 
A)  ​invest in a variable-rate certificate of deposit. 
B)  ​invest in a long-term,fixed-rate certificate of deposit. 
C)  ​invest in a short-term,fixed-rate certificate of deposit. 
D)  ​bury his money in fruit jars in the back yard.

Question 5

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

Accepted Answer

A)  ​both spouses. 
B)  ​the husband. 
C)  ​the wife. 
D)  ​the individual who bought it. 
A)  ​both spouses. 
B)  ​the husband. 
C)  ​the wife. 
D)  ​the individual who bought it.

Question 6

Share draft accounts at credit unions are generally more expensive than NOW accounts at commercial banks.

Accepted Answer

A) True 
 B)False

Question 7

To be legally responsible for only the first $50 of unauthorized use,one must report an ATM card missing within two days after the loss or theft of the card.

Accepted Answer

A) True 
 B)False

Question 8

While the majority of certificates of deposit pay a fixed rate of interest,variable-rate certificates of deposit are available.

Accepted Answer

A) True 
 B)False

Question 9

The fairest method for calculating interest on an account used ____ method for determining the balance to which the interest rate is applied.

Accepted Answer

A)  ​minimum-balance 
B)  ​quarterly compounding 
C)  ​APY 
D)  ​average daily balance 
A)  ​minimum-balance 
B)  ​quarterly compounding 
C)  ​APY 
D)  ​average daily balance

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

NOW accounts and share draft accounts with tiered interest will pay higher interest rates on larger balances.

Accepted Answer

A) True 
 B)False

Question 12

Money market deposit accounts are normally federally insured whereas money market mutual funds are not federally insured.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 
A)  ​Credit card 
B)  ​Debit card 
C)  ​Stored-value card

Question 15

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 16

A long-term,fixed-rate certificate of deposit would be most appropriate when interest rates are moving up.

Accepted Answer

A) True 
 B)False

Question 17

Acceptance for a lifeline banking account is dependent on one's income and net worth.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not true about commercial banks?

Accepted Answer

A)  ​Commercial banks are corporations chartered under federal and state regulations. 
B)  ​Accounts in federally chartered commercial banks are insured against loss by the Bank Insurance Fund of the Federal Deposit Insurance Corporation. 
C)  ​Commercial banks offer numerous consumer services. 
D)  ​Commercial banks generally pay depositors an interest rate about 0.10 to 0.20 percentage points higher than the rate found at savings banks. 
A)  ​Commercial banks are corporations chartered under federal and state regulations. 
B)  ​Accounts in federally chartered commercial banks are insured against loss by the Bank Insurance Fund of the Federal Deposit Insurance Corporation. 
C)  ​Commercial banks offer numerous consumer services. 
D)  ​Commercial banks generally pay depositors an interest rate about 0.10 to 0.20 percentage points higher than the rate found at savings banks.

Question 20

The Truth in Savings Act requires depository institutions to disclose a standardized rate of interest so that depositors can easily compare various savings options.

Accepted Answer

A) True 
 B)False

A personal identification number is not needed for which of the following forms of electronic funds transfers?

If the balance on either a super NOW account or a money market deposit account falls below a specified level,the account generally earns interest at the lower rate paid on a regular NOW account.

Most homeowner's and renter's insurance policies partially cover the liability for theft of both debit and credit cards.

If Gus believes interest rates are going to fall in the near future and remain low for several years,Gus should now

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

Share draft accounts at credit unions are generally more expensive than NOW accounts at commercial banks.

To be legally responsible for only the first $50 of unauthorized use,one must report an ATM card missing within two days after the loss or theft of the card.

While the majority of certificates of deposit pay a fixed rate of interest,variable-rate certificates of deposit are available.

The fairest method for calculating interest on an account used ____ method for determining the balance to which the interest rate is applied.

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

NOW accounts and share draft accounts with tiered interest will pay higher interest rates on larger balances.

Money market deposit accounts are normally federally insured whereas money market mutual funds are not federally insured.

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

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

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 long-term,fixed-rate certificate of deposit would be most appropriate when interest rates are moving up.

Acceptance for a lifeline banking account is dependent on one's income and net worth.

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

Which of the following is not true about commercial banks?

The Truth in Savings Act requires depository institutions to disclose a standardized rate of interest so that depositors can easily compare various savings options.

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

Investing Through Mutual Funds

Real Estate and High-Risk Investments

Retirement Planning

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Exam 5: Managing Checking and Savings Accounts

A personal identification number is not needed for which of the following forms of electronic funds transfers?

If the balance on either a super NOW account or a money market deposit account falls below a specified level,the account generally earns interest at the lower rate paid on a regular NOW account.

Most homeowner's and renter's insurance policies partially cover the liability for theft of both debit and credit cards.

If Gus believes interest rates are going to fall in the near future and remain low for several years,Gus should now

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

Share draft accounts at credit unions are generally more expensive than NOW accounts at commercial banks.

To be legally responsible for only the first $50 of unauthorized use,one must report an ATM card missing within two days after the loss or theft of the card.

While the majority of certificates of deposit pay a fixed rate of interest,variable-rate certificates of deposit are available.

The fairest method for calculating interest on an account used ____ method for determining the balance to which the interest rate is applied.

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

NOW accounts and share draft accounts with tiered interest will pay higher interest rates on larger balances.

Money market deposit accounts are normally federally insured whereas money market mutual funds are not federally insured.

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

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

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 long-term,fixed-rate certificate of deposit would be most appropriate when interest rates are moving up.

Acceptance for a lifeline banking account is dependent on one's income and net worth.

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

Which of the following is not true about commercial banks?

The Truth in Savings Act requires depository institutions to disclose a standardized rate of interest so that depositors can easily compare various savings options.

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

Investing Through Mutual Funds

Real Estate and High-Risk Investments

Retirement Planning

Filters