Chapter 4 managing your cash and savings

ác câu hỏi trắc nghiệm môn kế hoách tài chính, financial planing, đầy đủ, điểm cao, ôn thi cho final và các bài thi học phần, đại học Hà Nội, FMT, managing your cash and savings, If interest on a savings account is compounded semiannually, the effective rate of interest will be

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Chapter 4 Managing Your Cash and Savings

Principles of Finance (Trường Đại học Ngoại thương)

Chapter 4 Managing Your Cash and Savings

Principles of Finance (Trường Đại học Ngoại thương)

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1 One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account.

KEYWORDS: Bloom's: Remembering

2 A savings account may be a useful tool in managing everyday household transactions

KEYWORDS: Bloom's: Analyzing

3 Saving accounts are sometimes referred to as demand deposits

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4 Specialization within the financial institutions industry continues to increase.

5 The rate of return on liquid assets is relatively high compared to other types of investments

6 NOW accounts are appropriate for people who need to keep substantial amounts of money in a checking account and use it for numerous transactions each month

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and Interest Rates

KEYWORDS: Bloom's: Applying

7 Credit unions typically pay higher rates of return on savings than banks and savings and loan associations

8 There is a penalty for early withdrawal of funds from CDs purchased from brokerage firms

9 Certificates of deposit can be purchased only at banks, savings and loan associations, and credit unions

United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills

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STATE STAND

ARDS:

United States - AK - DISC: Banking and InterestUnited States - KS - DISC: Financial Markets and Inte - DISC: Financial Marketsand Interest Rates

10 One can avoid early withdrawal penalties on CDs by purchasing them through brokerage firms

11 Money market mutual funds are insured up to $250,000 by the FDIC if purchased at an insured bank

12 Money market deposit accounts are insured by the FDIC if purchased at an insured bank

NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills

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13 FDIC covers stocks, bonds, and mutual funds purchased at banks

14 Asset management accounts are protected by the Federal Deposit Insurance Corporation

15 There are no limitations on check writing for both MMDAs and MMMFs

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16 Asset management accounts (AMAs) combine many cash management services into one account

17 S&Ls are the most popular segment of the financial institutions industry

18 Another term for the interest paid by credit unions on deposits is dividends

LEARNING O PFIN.BILL.17.4-2 - LO: 4-2

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19 The main business of an S&L is to provide home mortgage and home improvement loans

20 Savings and loan associations (S&Ls) channel the savings of depositors primarily into automotive loans

21 Savings and loan associations usually offer non-interest bearing checking accounts

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22 The annual percentage yield (APY) formula considers compounding when determining an interest rate

23 Savings banks are mainly found in the northeastern United States

24 Credit unions are mainly found in the northeastern United States

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25 Credit union members are expected to have some common bond

26 From the bank's perspective, ATM transactions are more costly than online banking transactions

27 EFTS allow you to make payments that occur on a regular basis

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28 Convenience and improved record keeping are two advantages cited for online bill payment

29 Money market mutual funds invest in long-term treasury securities and other types of bonds

30 A regular savings account is a time deposit

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31 As of 2014, the FDIC insures depositor's funds up to $250,000 at member banks

32 You should insure valuables, even if they are kept in a safe-deposit box

33 Financial institutions expect demand deposits to remain on deposit for a longer period of time than time deposits

a True

b Fals

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KEYWORDS: Bloom's: Creating

34 A money market mutual fund is one way to participate indirectly in the purchase of money market securities

35 If one wanted to make monthly deposits to accumulate funds for future expenditures, a money market account would

be an appropriate savings vehicle

KEYWORDS: Bloom's: Understanding

36 Asset management accounts (AMAs) are offered by brokerage firms and are protected by the Securities Investor

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37 Most credit unions provide their members with deposit insurance

38 For married depositors, it is possible to increase the $250,000 of deposit insurance to up to $1,500,000 by opening a variety of accounts in different depositor names at the same institution

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39 Mark Helig has a checking account in his name and a joint savings account with his wife at the same bank The maximum amount of deposit insurance the Heligs have is $250,000

40 If Suzie has $2,000 in checking, $50,000 in a money market deposit account, and $75,000 in certificates of deposit (allindividual accounts) at her local bank, her accounts would be completely insured through FDIC

41 If Lois has $2,000 in checking, $50,000 in a money market mutual fund, and $75,000 in certificates of deposit (all individual accounts) at her local bank, her accounts would be insured through FDIC for $77,000

NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills

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42 Debit and ATM card transactions are linked to your checking account

43 Although there are no legal minimum balances for a NOW account, many institutions impose their own requirement, often between $500 and $1,000 before they pay any interest

44 ATM transactions require the use of a PIN

LEARNING O PFIN.BILL.17.4-3 - LO: 4-3

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45 Internet-only banks typically pay lower interest rates on savings than traditional banks

46 Stop-payment services are easier with electronic funds transfers than with traditional check payments

47 Treasury bills are sold at their face value

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48 Treasury bills are sold at a discount of their maturity value

49 The minimum denomination for Treasury bills is now $1,000

50 If your bank states that it compounds monthly, the effective interest rate (APY) will be greater than the nominal interest rate

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51 Your savings will grow faster with monthly interest compounding than with quarterly interest compounding

52 Compound interest means that a savings account earns interest on the interest previously earned

53 A certified check is a personal check for which the bank guarantees the funds are available

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54 A bank cannot advertise as "free" a checking account that requires a minimum balance, even though depositors who maintain the minimum balance pay no service fees

55 Joint checking accounts typically imply the right of survivorship if one party should die

56 You can stop payment when you purchase an item with your debit card

a True

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57 The rate of return on a Series EE savings bond will be constant over the life of the bond

58 The rate of return on a Series EE savings bond changes semiannually

59 Series EE Savings bonds are also called Patriot Bonds

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60 Series HH bonds are issued at their full face value and pay interest semiannually at the current fixed rate

61 You should invest in long-term CDs when you expect interest rates to fall

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62 The nominal rate of interest will be lower than the effective rate of interest when an account compounds monthly.

63 You put $1,000 into a 12-month certificate of deposit After seven months, you really need the money The bank will let you have it before 12 months, but you will pay a penalty

64 A major reason for overdrafts is the inability of a check writer to keep an accurate checkbook ledger

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65 If your checkbook is lost or stolen, there is no need to stop payment on the checks

66 A cashier's check is written on the bank's account rather than on a customer's account

67 A certified check is written on the bank's account rather than on a customer's account

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and Interest Rates

68 Low interest rates that have persisted since the financial crisis of 2008-09 have been a net benefit to retirees

69 Lower borrowing costs encourage the substitution of debt for equity in corporate capital structures, which increases financial risk

70 Low interest rates have increased the supply of credit

STATE STANDARDS United States - KS - DISC: Financial Markets and Inte - DISC: Financial

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: Markets and Interest Rates

71 With low interest rates, savers have begun investing in stock where higher yields can be found

72 In the wake of the recent financial crisis, the U.S personal saving rate decreased.

73 Factors typically influencing the choice of where to maintain a checking account are

a convenience and cost

b convenience and services

c cost and services

d convenience, services, and

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STATE STAND

ARDS:

United States - AK - DISC: Banking and InterestUnited States - KS - DISC: Financial Markets and Inte - DISC: Financial Marketsand Interest Rates

74 Money market deposit accounts

a allow unlimited check writing

b are typically federally insured

c have stated maturity dates

d are offered only by credit unions

75 Money market mutual funds

a allow check writing

b are not federally insured

c pool the funds of many small investors

d pay interest rates of 1 to 3 percent higher than those paid on regular savings

76 Which of the following would be an appropriate savings vehicle if you expected interest rates to fall over the next few months?

a money market deposit

account

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b money market mutual fund

77 Janice Sanders plans on saving $12,000 for 3 years until she returns to college for her master's degree in personal financial planning She would like to receive a fixed rate of return over that period Which of the following would you recommend?

a money market deposit

account

b 1-year certificate of deposit

c 3-year certificate of deposit

d Series EE US savings bond

KEYWORDS: Bloom's: Evaluating

78 When an S&L is a mutual association, it means that it is owned by the

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79 Historically, the primary purpose of savings and loan associations was to

a provide passbook accounts paying interest above that of commercial

banks

b compete directly with commercial banks

c provide NOW accounts

d provide demand deposits

e channel savings into mortgages

80 Credit unions are

a mutual associations

b mortgage lenders

c available to the general public

d special commercial lenders

e not providers of insured

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81 Compared to other depository financial institutions, credit unions

a are run to benefit their

members

b pay higher interest on savings

c charge lower rates on loans

82 Which of the following is a potential advantage of online bill payment systems?

83 The minimum denomination of T-bills you can buy is

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84 Share draft accounts are commonly offered by

85 A(n) is not an interest-bearing account.

a money market mutual fund

b money market deposit

account

c NOW account

d asset management account

e regular checking account

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86 A is an interest-bearing checking account

a certificate of deposit

b Treasury bill

c NOW account

d Series EE US savings bond

e regular checking account

87 Connie Shockey wants to put funds in an account that does not offer checking privileges because she has a tendency tooverspend Which of the following would fit her criteria?

a NOW account

b A DDA with overdraft protection

c money market mutual fund

d money market deposit account

88 The more frequently a bank compounds interest, will be

a the higher the stated interest rate

b the lower the stated interest rate

c the greater the effective rate of interest

d the lower the APY

e both a and c

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89 Commercial banks are insured by the

a Financial Deposit Insurance Association

b Federal Depositors Assurance Corporation

c Federal Deposit Insurance Corporation

d Financial Deposit Insurance Company

e Federal Demand Deposit Corporation

90 Janie Long has checking and savings accounts in a federally insured financial institution The maximum amount of herinsurance coverage is

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91 Christina works at a company that offers direct deposit of her paycheck This service is called

92 Vicki Vasquez owns a six-month treasury bill that is four months from maturity She recently encountered medical problems and needs the money now She

a can request in writing for the treasury to pay her early

b can sell the T-bill in the open market

c will have to wait until the maturity date to get her money

d can call a toll-free number to request the money

e can go to the bank and withdraw the funds needed

93 Which of the following is not a strategy to building your savings?

a Pay yourself first

b Reinvest interest and

dividends

c Splurge once in a while

d Set up a retirement plan

Tiêu đề	Managing Your Cash and Savings
Trường học	Foreign Trade University
Chuyên ngành	Finance
Thể loại	Giáo trình
Thành phố	Hanoi

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