Question 1

An interest penalty is associated with a CD,but not with a money market deposit account.

Accepted Answer

A) True 
 B)False

Question 2

You can purchase newly-issued Series HH bonds at any bank.

Accepted Answer

A) True 
 B)False

Question 3

Both money market deposit accounts and money market mutual funds may have federal insurance protection.

Accepted Answer

A) True 
 B)False

Question 4

When you reconcile your monthly bank statement,any checks outstanding should be deducted from your book balance.

Accepted Answer

A) True 
 B)False

Question 5

A money market mutual fund is a good short-term investment if you want a rather high liquid balance to make an occasional major purchase,such as an item at a flea market.

Accepted Answer

A) True 
 B)False

Question 6

A cash management strategy does not involve which of the following activities?

Accepted Answer

A) Deciding to your satisfaction what future interest rates will be 
B) Balancing your desires for safety,liquidity,and yield 
C) Obtaining information about alternative deposit accounts 
D) Keeping as little cash as possible 
A) Deciding to your satisfaction what future interest rates will be 
B) Balancing your desires for safety,liquidity,and yield 
C) Obtaining information about alternative deposit accounts 
D) Keeping as little cash as possible

Question 7

"Check 21" gives banks the option of returning actual checks or substitute checks.

Accepted Answer

A) True 
 B)False

Question 8

The difference between a NOW account and a Money Market Deposit Account,it that the latter

Accepted Answer

A) pays a higher rate of interest and requires a larger minimum balance. 
B) has no limit on the number of checks you can write. 
C) is not covered by federal deposit insurance. 
D) cannot accept electronic transfers. 
A) pays a higher rate of interest and requires a larger minimum balance. 
B) has no limit on the number of checks you can write. 
C) is not covered by federal deposit insurance. 
D) cannot accept electronic transfers.

Question 9

If a savings account offers a 10% annual interest rate compounded monthly,your actual return will be greater than 10%.

Accepted Answer

A) True 
 B)False

Question 10

Many people cite convenience as the most important factor in choosing one bank over another.

Accepted Answer

A) True 
 B)False

Question 11

Series I bonds offer better tax advantages than Series EE bonds.

Accepted Answer

A) True 
 B)False

Question 12

A money market deposit account does not have a fixed rate of interest.

Accepted Answer

A) True 
 B)False

Question 13

The best choice for someone who makes occasional spur-of-the-moment purchases is

Accepted Answer

A) a money market mutual fund. 
B) a passbook savings account. 
C) a certificate of deposit. 
D) a U.S.Series HH bond. 
A) a money market mutual fund. 
B) a passbook savings account. 
C) a certificate of deposit. 
D) a U.S.Series HH bond.

Question 14

Which of the following checks does not guarantee payment?

Accepted Answer

A) A personal check with a restrictive endorsement 
B) A certified check 
C) A cashier's check 
D) A traveler's check 
A) A personal check with a restrictive endorsement 
B) A certified check 
C) A cashier's check 
D) A traveler's check

Question 15

Money market deposit accounts are not as safe as money market mutual funds.

Accepted Answer

A) True 
 B)False

Question 16

In most cases,you have unlimited access to a passbook savings account.

Accepted Answer

A) True 
 B)False

Question 17

During inflationary periods,cash assets serve poorly as a store of value.

Accepted Answer

A) True 
 B)False

Question 18

Lou Hinton's savings account (offering 12% simple interest)showed the following activity for the month of June:
Opening balance $2,000
6/10 Deposit 1,000
6/20 Withdrawal ( 800)6/30 Ending Balance 2,200
Interest earned in June with the LIFO method would be

Accepted Answer

A) $24.00. 
B) $22.00. 
C) $18.67. 
D) $21.33. 
A) $24.00. 
B) $22.00. 
C) $18.67. 
D) $21.33.

Question 19

A money market deposit account (MMDA)is

Accepted Answer

A) a limited-access savings account with a minimum balance requirement offering money market rates. 
B) the statement a money market mutual fund sends you showing activity in your account. 
C) any savings account at a federally-insured financial institution that offers higher rates but is not insured. 
D) similar to a CD since you pay a penalty for early withdrawals. 
A) a limited-access savings account with a minimum balance requirement offering money market rates. 
B) the statement a money market mutual fund sends you showing activity in your account. 
C) any savings account at a federally-insured financial institution that offers higher rates but is not insured. 
D) similar to a CD since you pay a penalty for early withdrawals.

Question 20

Which of the following is not a characteristic of most passbook savings accounts?

Accepted Answer

A) An unlimited number of deposits or withdrawals each month 
B) No minimum balance requirement 
C) Interest rates are higher than money market rates. 
D) Transactions are often recorded in a passbook. 
A) An unlimited number of deposits or withdrawals each month 
B) No minimum balance requirement 
C) Interest rates are higher than money market rates. 
D) Transactions are often recorded in a passbook.

An interest penalty is associated with a CD,but not with a money market deposit account.

You can purchase newly-issued Series HH bonds at any bank.

Both money market deposit accounts and money market mutual funds may have federal insurance protection.

When you reconcile your monthly bank statement,any checks outstanding should be deducted from your book balance.

A money market mutual fund is a good short-term investment if you want a rather high liquid balance to make an occasional major purchase,such as an item at a flea market.

A cash management strategy does not involve which of the following activities?

"Check 21" gives banks the option of returning actual checks or substitute checks.

The difference between a NOW account and a Money Market Deposit Account,it that the latter

If a savings account offers a 10% annual interest rate compounded monthly,your actual return will be greater than 10%.

Many people cite convenience as the most important factor in choosing one bank over another.

Series I bonds offer better tax advantages than Series EE bonds.

A money market deposit account does not have a fixed rate of interest.

The best choice for someone who makes occasional spur-of-the-moment purchases is

Which of the following checks does not guarantee payment?

Money market deposit accounts are not as safe as money market mutual funds.

In most cases,you have unlimited access to a passbook savings account.

During inflationary periods,cash assets serve poorly as a store of value.

Lou Hinton's savings account (offering 12% simple interest)showed the following activity for the month of June: Opening balance $2,000 6/10 Deposit 1,000 6/20 Withdrawal ( 800)6/30 Ending Balance 2,200 Interest earned in June with the LIFO method would be

A money market deposit account (MMDA)is

Which of the following is not a characteristic of most passbook savings accounts?

Financial Planning: Why Its Important to You

The Time Value of Money: All Dollars Are Not Created Equal

Financial Statement and Budgets: Where Are You Now and Where Are You Going

Taxes: the Governments Share of Your Rewards

Short-Term Credit Management: Consumer Credit

Consumer Durables: the Personal Auto

Housing: the Cost of Shelter

Financial Markets and Instruments: Learning the Investment Environment

Investment Basics: Understanding Risk and Return

Stocks and Bonds: Your Most Common Investments

Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance

Property and Liability Insurance: Protecting Your Lifestyle Assets

Health Care and Disability Insurance: Protecting Your Earning Capacity

Life Insurance and Estate Planning: Protecting Your Dependents

Retirement Planning: Planning for Your Long-Term Needs

Filters

Exam 5: Liquidity Management: Managing Current Assets and Current Liabilities

An interest penalty is associated with a CD,but not with a money market deposit account.

You can purchase newly-issued Series HH bonds at any bank.

Both money market deposit accounts and money market mutual funds may have federal insurance protection.

When you reconcile your monthly bank statement,any checks outstanding should be deducted from your book balance.

A money market mutual fund is a good short-term investment if you want a rather high liquid balance to make an occasional major purchase,such as an item at a flea market.

A cash management strategy does not involve which of the following activities?

"Check 21" gives banks the option of returning actual checks or substitute checks.

The difference between a NOW account and a Money Market Deposit Account,it that the latter

If a savings account offers a 10% annual interest rate compounded monthly,your actual return will be greater than 10%.

Many people cite convenience as the most important factor in choosing one bank over another.

Series I bonds offer better tax advantages than Series EE bonds.

A money market deposit account does not have a fixed rate of interest.

The best choice for someone who makes occasional spur-of-the-moment purchases is

Which of the following checks does not guarantee payment?

Money market deposit accounts are not as safe as money market mutual funds.

In most cases,you have unlimited access to a passbook savings account.

During inflationary periods,cash assets serve poorly as a store of value.

Lou Hinton's savings account (offering 12% simple interest)showed the following activity for the month of June: Opening balance $2,000 6/10 Deposit 1,000 6/20 Withdrawal ( 800)6/30 Ending Balance 2,200 Interest earned in June with the LIFO method would be

A money market deposit account (MMDA)is

Which of the following is not a characteristic of most passbook savings accounts?

Financial Planning: Why Its Important to You

The Time Value of Money: All Dollars Are Not Created Equal

Financial Statement and Budgets: Where Are You Now and Where Are You Going

Taxes: the Governments Share of Your Rewards

Short-Term Credit Management: Consumer Credit

Consumer Durables: the Personal Auto

Housing: the Cost of Shelter

Financial Markets and Instruments: Learning the Investment Environment

Investment Basics: Understanding Risk and Return

Stocks and Bonds: Your Most Common Investments

Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance

Property and Liability Insurance: Protecting Your Lifestyle Assets

Health Care and Disability Insurance: Protecting Your Earning Capacity

Life Insurance and Estate Planning: Protecting Your Dependents

Retirement Planning: Planning for Your Long-Term Needs

Filters