Exam 5: Managing Checking and Savings Accounts

It is highly recommended that CD investments be made at local institutions,even though some yield may be sacrificed.

Demand deposits are savings that are expected to remain on deposit in a financial institution for an extended period.

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

Electronic funds transfers (EFTs)move money electronically between accounts rather than by check or cash.

Amy and Lance are newlyweds.This is Lance's second marriage.Because of problems that occurred before his divorce (his ex-wife took all the money out of their joint accounts),he is more cautious than most about setting up joint accounts.Which type of account would you recommend for Amy and Lance?

When you sign up for electronic banking services,the depository institution must inform you of your rights and responsibilities in a written disclosure statement.

A payable-on-death designation can be used to set up an individual account that automatically goes to another person when you die.

Credit unions typically offer the widest variety of financial services.

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

A person whose income is dependent on commissions generally needs more readily available emergency fund than a salaried employee.

The primary reason for giving a child an allowance is to

Having your pay sent directly to your bank rather than have a check given to you is a type of

Husbands and wives who own a checking or savings account together would most likely want to set up the account with

Jack and Jill have trouble keeping their checking account balanced.Because they never know how much is really in their account,they have an automatic funds transfer agreement with their bank.When Jack or Jill writes a bad check,what will happen?

Monetary asset management includes setting money aside in a savings account for use later when making investments.

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

Bob and Tina Cisneros want to build a $10,000 emergency fund.Which of the following would be the most appropriate choice for the emergency fund?

Everything else being the same,an investor would prefer an asset management account that "sweeps" weekly rather than daily.

The regulator of commercial banks and saving banks is the

In general,you will receive higher rates of interest on your certificate of deposit the ____ the maturity and the ____ the dollar amount invested.