Exam 5: Banking and Interest Rates

The ________ is the return on an investment that is guaranteed for a specified period.

Deposits in commercial banks that are members of the FDIC,are insured up to a maximum of $50,000 per account.

Which of the following financial institutions would be used the most by business customers wishing to borrow money?

You have $3,000 that you may need any day to replace the furnace in your house.Which of the following would be the best place to put the $3,000?

To prevent an overdraft or "bounced check," it is always a good idea to record each check written in your check register and reconcile your account balance when you receive your monthly bank statement.

A ________ is a check that is written on behalf of a person for a fixed amount that is paid in advance.

The Act that allows banks to transmit electronic images of checks,thus allowing funds to be transferred immediately is known as

If you wish to make purchases that are charged against your checking account without writing a check you need to have a(n)________.

The yield curve is typically ________,meaning that the annualized interest is higher for debt securities with longer terms to maturity.

You are purchasing a new car and are making a down payment of $6,500.To be assured of payment,the dealership would request that you provide a

A(n)________ card allows you to pay for a purchase directly from your checking account without writing a check.

Organizations that offer a diverse set of financial services to individuals and firms are ________.

________ are nondepository institutions that provide insurance to protect individuals or firms against possible adverse events.

________ is a movement that began in September 2011 to protest against large banks that are believed to receive excessive support from the government.

Lorenzo is considering two banks for his checking account.Suny Bank requires a minimum deposit of $100 and charges a monthly fee of $8,plus 5 cents a check.Merchants Bank also requires a minimum deposit of $100,it charges a per check fee of 15 cents but no monthly fee.How many checks would Lorenzo need to write each month to make Suny Bank cheaper to use than Merchants?

________ are nondepository institutions that facilitate the purchase or sale of securities by firms or individuals by providing investment banking services and brokerage services.

Your checkbook balance at the end of May is $1,041.52.When you receive May's bank statement,you discover the following additional items: Bank fees,$27.00; Interest earned,$16.35.Your adjusted checkbook balance after considering these items is

If you have $10,000 that you do not currently need for expenses and you wish to put it somewhere so that it will earn a return,which of the following financial institutions would you not choose?

Information such as ________ can be easily found on a variety of Web sites.

Savings institutions differ from commercial banks in that they tend to focus less on providing commercial loans.