Question 1

Stored value cards function as debit cards.

Accepted Answer

A) True 
 B)False

Question 2

Pocket money refers to "pocket lines of credit" offered by major credit cards.

Accepted Answer

A) True 
 B)False

Question 3

A wire transfer refers to using an ATM machine to access cash.

Accepted Answer

A) True 
 B)False

Question 4

John issued a check to Mary who signed it as a blank endorsement.Mary lost the check.If someone finds it,he/she could

Accepted Answer

A) sign his/her name under Monica's and cash the check. 
B) write "for deposit only" under Monica's signature and deposit it to his/her account. 
C) do nothing;the check must be made payable to him/her before it can be cashed. 
D) do nothing;since he or she is neither a payer or payee. 
A) sign his/her name under Monica's and cash the check. 
B) write "for deposit only" under Monica's signature and deposit it to his/her account. 
C) do nothing;the check must be made payable to him/her before it can be cashed. 
D) do nothing;since he or she is neither a payer or payee.

Question 5

Money market deposit accounts and money market mutual funds are identical financial products.

Accepted Answer

A) True 
 B)False

Question 6

Because it pays higher interest,a CD is considered more liquid than a passbook savings account.

Accepted Answer

A) True 
 B)False

Question 7

Lenny,who lives in New York City,deposited in his checking account a certified check from his mother,who also lives in New York City.The bank must make the funds available

Accepted Answer

A) immediately. 
B) on the next business day. 
C) two days after the deposit day. 
D) after the check clears the Federal Reserve System. 
A) immediately. 
B) on the next business day. 
C) two days after the deposit day. 
D) after the check clears the Federal Reserve System.

Question 8

The more frequently interest is compounded,

Accepted Answer

A) the higher your effective yield. 
B) the lower your effective yield. 
C) your effective yield stays the same. 
D) there is no relationship between effective yield and compounding. 
A) the higher your effective yield. 
B) the lower your effective yield. 
C) your effective yield stays the same. 
D) there is no relationship between effective yield and compounding.

Question 9

The IRS accepts substitute checks as proof of purchase for tax purposes.

Accepted Answer

A) True 
 B)False

Question 10

A CD enables you to "lock in" a current interest rate.

Accepted Answer

A) True 
 B)False

Question 11

A NOW account is

Accepted Answer

A) a CD that pays interest immediately ("now"). 
B) a limited checking account usually only three checks a month can be written. 
C) any checking account not held at a commercial bank. 
D) a checking account that pays interest. 
A) a CD that pays interest immediately ("now"). 
B) a limited checking account usually only three checks a month can be written. 
C) any checking account not held at a commercial bank. 
D) a checking account that pays interest.

Question 12

The following is a correct order of decreasing liquidity: pocket money,checking account,passbook savings account,money market deposit account,CD.

Accepted Answer

A) True 
 B)False

Question 13

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 FIFO method would be

Accepted Answer

A) $24.00. 
B) $12.00. 
C) $18.67. 
D) $21.33. 
A) $24.00. 
B) $12.00. 
C) $18.67. 
D) $21.33.

Question 14

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 minimum balance method would be

Accepted Answer

A) $20.00. 
B) $22.00. 
C) $30.00. 
D) unknown. 
A) $20.00. 
B) $22.00. 
C) $30.00. 
D) unknown.

Question 15

A bank reconciliation means that the end-of-month balance as show on the bank statement is the same as the end-of-month balance in the check record.

Accepted Answer

A) True 
 B)False

Question 16

Lenny,who lives in New York City,deposited in his checking account a check from his mother,who also lives in New York City.The bank must make the funds available

Accepted Answer

A) immediately. 
B) on the next business day. 
C) two days after the deposit day. 
D) after the check clears the Federal Reserve System. 
A) immediately. 
B) on the next business day. 
C) two days after the deposit day. 
D) after the check clears the Federal Reserve System.

Question 17

Monica Bates received a check and endorsed it by simply signing her name on the reverse side of the check.This is called

Accepted Answer

A) a special endorsement. 
B) a deposit endorsement. 
C) a restrictive endorsement. 
D) a blank endorsement. 
A) a special endorsement. 
B) a deposit endorsement. 
C) a restrictive endorsement. 
D) a blank endorsement.

Stored value cards function as debit cards.

Pocket money refers to "pocket lines of credit" offered by major credit cards.

A wire transfer refers to using an ATM machine to access cash.

John issued a check to Mary who signed it as a blank endorsement.Mary lost the check.If someone finds it,he/she could

Money market deposit accounts and money market mutual funds are identical financial products.

Because it pays higher interest,a CD is considered more liquid than a passbook savings account.

Lenny,who lives in New York City,deposited in his checking account a certified check from his mother,who also lives in New York City.The bank must make the funds available

The more frequently interest is compounded,

The IRS accepts substitute checks as proof of purchase for tax purposes.

A CD enables you to "lock in" a current interest rate.

A NOW account is

The following is a correct order of decreasing liquidity: pocket money,checking account,passbook savings account,money market deposit account,CD.

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 FIFO method would be

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 minimum balance method would be

A bank reconciliation means that the end-of-month balance as show on the bank statement is the same as the end-of-month balance in the check record.

Lenny,who lives in New York City,deposited in his checking account a check from his mother,who also lives in New York City.The bank must make the funds available

Monica Bates received a check and endorsed it by simply signing her name on the reverse side of the check.This is called

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

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

Stored value cards function as debit cards.

Pocket money refers to "pocket lines of credit" offered by major credit cards.

A wire transfer refers to using an ATM machine to access cash.

John issued a check to Mary who signed it as a blank endorsement.Mary lost the check.If someone finds it,he/she could

Money market deposit accounts and money market mutual funds are identical financial products.

Because it pays higher interest,a CD is considered more liquid than a passbook savings account.

Lenny,who lives in New York City,deposited in his checking account a certified check from his mother,who also lives in New York City.The bank must make the funds available

The more frequently interest is compounded,

The IRS accepts substitute checks as proof of purchase for tax purposes.

A CD enables you to "lock in" a current interest rate.

A NOW account is

The following is a correct order of decreasing liquidity: pocket money,checking account,passbook savings account,money market deposit account,CD.

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 FIFO method would be

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 minimum balance method would be

A bank reconciliation means that the end-of-month balance as show on the bank statement is the same as the end-of-month balance in the check record.

Lenny,who lives in New York City,deposited in his checking account a check from his mother,who also lives in New York City.The bank must make the funds available

Monica Bates received a check and endorsed it by simply signing her name on the reverse side of the check.This is called

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