Exam 5: Managing Checking and Savings Accounts

Fixed-time deposits specify a period of time that the savings must be left on deposit.

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

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.

Depositors are the owners of

Checking accounts that pay no interest are called NOW accounts.

How can a person transfer money out of his or her checking account?

The only reason to have a checking account is so that one has an account for writing checks.

Completing a signature card is part of the process when opening a checking account.

If one believes interests rates will move lower in the months ahead,he or she should invest in long-term,fixed-rate savings investments.

Management of ____ is not included in monetary asset management.

A ______ is a firm that notifies all companies with which you have debit and credit cards in the event that the cards are lost.

Money market mutual funds that buy only U.S.government securities are virtually risk-free.

Commercial banks typically offer the widest variety of financial services.

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

A person who is a joint owner of an ____ account should understand that his/her share of the assets in the account are distributed to the heirs of the deceased according to the terms of his/her will.

The best banking account PIN numbers and passwords are those that are easy to remember.

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

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

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)

Not-for-profit,common-bond financial institutions that are owned by their members are called