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

From a federal income tax perspective,interest on U.S.Series EE bonds

You are typically responsible for the payment on stolen checks that are forged with your name.

A traveler's check is likely to be more liquid than your personal check.

If spouses open a bank account with right of survivorship and one spouse dies,the funds in the account:

Interest rate volatility increases the complexity of cash management.

The least effective method of protecting against overdrafts generally is to

Although volatile,future interest rates are relatively easy to forecast.

A "special endorsement" transfers payment on an existing check to someone else.

From a safety perspective,which alternative below offers the best advice?

From the saver's point of view,the best method of computing interest is the day of deposit day of withdrawal method.

With a right of survivorship the proceeds in a joint bank account pass to the surviving account owner.

Which method of determining interest provides the least interest amount?

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 day-of-deposit-day-of-withdrawal method would be

Federal regulations prohibit banks from charging a prepayment penalty for redeeming a CD before its maturity date.

A cashier's check is written by a bank and drawn against the bank when paid.

An emergency reserve is held for transactions purposes.

Which of the following is not true of U.S.Series EE bonds?

A cashier's check is one of your personal checks the bank has guaranteed for payment.

A certified check is a personal check certified by a bank that the account contains adequate funds to cover the check.

Depositors often cite ________ as the most important consideration in selecting a particular bank.