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

lOMoARcPSD|10289698 Chapter Managing Your Cash and Savings Principles of Finance (Trường Đại học Ngoại thương) Studocu is not sponsored or endorsed by any college or university Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account a True b Fals e ANSWER: True POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-1 - LO: 4-1 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering A savings account may be a useful tool in managing everyday household transactions a True b Fals e ANSWER: False POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing Saving accounts are sometimes referred to as demand deposits a True b Fals e ANSWER: False POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings Specialization within the financial institutions industry continues to increase a True b Fals e ANSWER: False POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering The rate of return on liquid assets is relatively high compared to other types of investments a True b Fals e ANSWER: False POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 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 a True b Fals e ANSWER: True POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings and Interest Rates KEYWORDS: Bloom's: Applying Credit unions typically pay higher rates of return on savings than banks and savings and loan associations a True b Fals e ANSWER: True POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering There is a penalty for early withdrawal of funds from CDs purchased from brokerage firms a True b Fals e ANSWER: False POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering Certificates of deposit can be purchased only at banks, savings and loan associations, and credit unions a True b Fals e ANSWER: False POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-5 - LO: 4-5 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 10 One can avoid early withdrawal penalties on CDs by purchasing them through brokerage firms a True b Fals e ANSWER: True POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-5 - LO: 4-5 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 11 Money market mutual funds are insured up to $250,000 by the FDIC if purchased at an insured bank a True b Fals e ANSWER: False POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 12 Money market deposit accounts are insured by the FDIC if purchased at an insured bank a True b Fals e ANSWER: True POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 13 FDIC covers stocks, bonds, and mutual funds purchased at banks a True b Fals e ANSWER: False POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 14 Asset management accounts are protected by the Federal Deposit Insurance Corporation a True b Fals e ANSWER: False POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 15 There are no limitations on check writing for both MMDAs and MMMFs a True b Fals e ANSWER: False POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 16 Asset management accounts (AMAs) combine many cash management services into one account a True b Fals e ANSWER: True POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 17 S&Ls are the most popular segment of the financial institutions industry a True b Fals e ANSWER: False POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 18 Another term for the interest paid by credit unions on deposits is dividends a True b Fals e ANSWER: True POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 19 The main business of an S&L is to provide home mortgage and home improvement loans a True b Fals e ANSWER: True POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 20 Savings and loan associations (S&Ls) channel the savings of depositors primarily into automotive loans a True b Fals e ANSWER: False POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 21 Savings and loan associations usually offer non-interest bearing checking accounts a True b Fals e ANSWER: False POINTS: DIFFICULTY: Moderate Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 22 The annual percentage yield (APY) formula considers compounding when determining an interest rate a True b Fals e ANSWER: True POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-5 - LO: 4-5 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 23 Savings banks are mainly found in the northeastern United States a True b Fals e ANSWER: True POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 24 Credit unions are mainly found in the northeastern United States a True b Fals e ANSWER: False POINTS: Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 25 Credit union members are expected to have some common bond a True b Fals e ANSWER: True POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 26 From the bank's perspective, ATM transactions are more costly than online banking transactions a True b Fals e ANSWER: True POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 27 EFTS allow you to make payments that occur on a regular basis a True b Fals e ANSWER: True Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 134 Today the differences between a commercial bank and an S&L are [minor | major] ANSWER: a POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 135 Savings and loan associations are more likely to be paying [much | slightly] higher interest rates on their accounts than a commercial bank ANSWER: b POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 136 Credit unions are generally [small | large] institutions when compared with commercial banks and savings and loans ANSWER: a POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 50 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 137 A [checking | savings] account is called a demand deposit account ANSWER: a POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 138 A bank customer would expect to be able to write checks on his regular checking account and on his [certificate of deposit | money market fund] ANSWER: b POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 139 A bank customer would typically expect to receive higher interest rates on her [certificate of deposit | money market deposit account] ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 140 Banks must notify customers [30 | 60] days before lowering rates on deposit accounts or certificates of deposit Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 51 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 141 Money market deposit accounts [are | are not] insured by an agency of the federal government ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 142 [Money market deposit accounts | Money market mutual funds] are protected by the Federal Deposit Insurance Corporation ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 143 [Money market deposit accounts | Asset management accounts] are protected by the Securities Investor Protection Corporation ANSWER: b POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 52 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 144 Financial institutions [must pay at least a federally mandated minimum interest rate | may pay any interest rate they want] on their certificates of deposit ANSWER: b POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 145 [Almost all | Nearly 75 percent] of the banking institutions in the United States are federally insured ANSWER: a POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 146 You are planning to deposit $5,000 in a bank At the end of one year, you will have more money in this account if interest is compounded [semiannually | quarterly] ANSWER: b POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-5 - LO: 4-5 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 53 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings 147 Your bank pays 3% interest, compounded quarterly At the end of one year, your $5,000 will have earned [$150 | over $150] interest ANSWER: b POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-5 - LO: 4-5 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 148 Natalie is faced with two savings choices: Making a single deposit of $5,000 or making five annual deposits of $1,000 The interest rate on both is 4%, compounded monthly The [lump sum deposit | annual deposits] plan will result in a higher balance at the end of five years ANSWER: a POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-5 - LO: 4-5 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 149 Your bank does not levy a service charge on your checking account as long as a $1,000 minimum balance is maintained Your bank [can | cannot] advertise this as free checking ANSWER: b POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-2 - LO: 4-2 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 150 You make a promise to keep funds on deposit for a stated period of time when you open a [MMDA | CD] ANSWER: b POINTS: DIFFICULTY: Moderate Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 54 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 151 Interest earned on your [MMDA account | Series EE savings bonds] are free of state income taxes ANSWER: b POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-6 - LO: 4-6 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 152 Interest earned on your [Series EE savings bonds | T-bills] are exempt from federal income taxes if the proceeds are used to pay for education expenses ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-6 - LO: 4-6 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 153 [I savings bonds | Treasury bills] are sold at face value ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-6 - LO: 4-6 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 55 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings KEYWORDS: Bloom's: Remembering 154 You [would | would not] expect to receive a cash flow of interest from your Series EE bonds ANSWER: b POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-6 - LO: 4-6 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 155 Series EE savings bonds may be redeemed [any time after the first 12 months | only at the maturity date] ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-6 - LO: 4-6 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 156 Series EE savings bonds are also called [War Bonds | Patriot Bonds] ANSWER: b POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-6 - LO: 4-6 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 157 You would expect to find an asset management account at a [commercial bank | brokerage firm] ANSWER: b POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 56 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 158 An asset management account is likely to require a minimum investment of at least [$1,000 | $5,000] ANSWER: b POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 159 The most common type of joint checking account would require the [signature of either party | signatures of both parties] on all checks ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-4 - LO: 4-4 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 160 Joe and Mary have a tenants in common savings account When Joe dies, his portion of the account [will | will not] automatically go to Mary ANSWER: b POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-4 - LO: 4-4 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 57 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings 161 Dottie and Jasper have a joint checking account with rights of survivorship If Jasper dies, his portion of the account [will | will not] automatically go to Dottie ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-4 - LO: 4-4 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 162 "For deposit only" would indicate a [blank | restricted] endorsement ANSWER: b POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-4 - LO: 4-4 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 163 [Both the depositor and writer | Only the writer] of a "bad" check will likely be charged a fee by their/his banks/bank ANSWER: a POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-4 - LO: 4-4 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 164 Having some type of overdraft protection with your bank will end up costing [more | less] than having a check bounce ANSWER: b POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-4 - LO: 4-4 Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 58 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 165 Errors discovered during the reconciliation process are most likely to have been made by the [depositor | bank] ANSWER: a POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-4 - LO: 4-4 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 166 [Anyone | Only those with an account at the bank] can purchase cashiers' checks ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-4 - LO: 4-4 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 167 [Anyone | Only those with an account at the bank] can get a check certified ANSWER: b POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-4 - LO: 4-4 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 59 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings 168 Your bank probably [will | will not] levy a transaction fee if you use the ATM of another bank ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 169 Banks [may | must] state interest rates they pay as annual percentage yields ANSWER: b POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Remembering 170 It costs financial institutions more for their customers to perform [ATM transactions | Internet transactions.] ANSWER: a POINTS: DIFFICULTY: Easy LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Understanding 171 Low interest rates that have persisted since the financial crisis of 2008-09 have been a net benefit to [borrowers | retirees] ANSWER: a POINTS: DIFFICULTY: Challenging LEARNING OBJECT PFIN.BILL.17.4-1 - LO: 4-1 IVES: NATIONAL STANDA United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 60 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings RDS: STATE STANDARDS United States - KS - DISC: Financial Markets and Inte - DISC: Financial : Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 172 Low interest rates have [increased | decreased | not impacted ] the supply of credit ANSWER: c POINTS: DIFFICULTY: Challenging LEARNING OBJECT PFIN.BILL.17.4-1 - LO: 4-1 IVES: NATIONAL STANDA United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills RDS: STATE STANDARDS United States - KS - DISC: Financial Markets and Inte - DISC: Financial : Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 173 With low interest rates, savers have begun investing in [bonds | stocks] where higher yields can be found ANSWER: b POINTS: DIFFICULTY: Challenging LEARNING OBJECT PFIN.BILL.17.4-1 - LO: 4-1 IVES: NATIONAL STANDA United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills RDS: STATE STANDARDS United States - KS - DISC: Financial Markets and Inte - DISC: Financial : Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 174 In the wake of the recent financial crisis, the U.S personal saving rate has [increased | decreased] ANSWER: a POINTS: DIFFICULTY: Moderate LEARNING OBJECT PFIN.BILL.17.4-6 - LO: 4-6 IVES: NATIONAL STANDA United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills RDS: STATE STANDARDS United States - KS - DISC: Financial Markets and Inte - DISC: Financial : Markets and Interest Rates KEYWORDS: Bloom's: Remembering 175 The most expensive method for banks to interact with their customers is [in person | by ATM ] ANSWER: a POINTS: DIFFICULTY: Easy LEARNING OBJECT PFIN.BILL.17.4-3 - LO: 4-3 Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 61 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings IVES: NATIONAL STANDA United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills RDS: STATE STANDARDS United States - KS - DISC: Financial Markets and Inte - DISC: Financial : Markets and Interest Rates KEYWORDS: Bloom's: Remembering 176 Maggie wants to open a checking account that will be the least expensive given her normal financial transactions She typically writes 15 checks a month and uses an ATM 35 times a month Her minimum checking balance falls to about $350 in an average month Which of the following accounts would be least expensive for Maggie? (Show all your work.) Account A: ∙ No monthly fee is charged if a minimum balance of at least $300 is maintained ∙ A $5.00 fee is charged in any month the minimum balance falls below $300 ∙ An ATM fee of $0.10 per transaction is charged on all transactions Account B: ∙ No monthly fee is charged if a minimum balance of at least $500 is maintained A $3.00 fee plus $0.10/check is charged in any month the minimum balance falls below ∙ $500 ∙ There is no ATM fee on transactions ANSWER: Account A Cost of Account A = $0 + ($0.10 × 35) = $3.50/month Cost of Account B = $3 + ($0.10 × 15) = $4.50/month POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-3 - LO: 4-3 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 177 You have a savings plan into which you put $3,000 per year How much will you accumulate in the account in 25 years if the interest rate is 10%? (Show all work.) ANSWER: $295,038 or $295,041 Future value = $3,000 × 98.346 = $295,038 or PMT=3,000, N=25, I=10, FV=295,041 POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-5 - LO: 4-5 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 62 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings KEYWORDS: Bloom's: Analyzing 178 Gordon and Susan have a regular savings plan and have accumulated $8,000 How much will this be worth in 10 years if they can earn 2% on the money They are not planning to add to this savings account (Show all work.) ANSWER: $9,752 Future value = $8,000 × 1.219 = $9,752 or PV=8,000, N=10, I=2, FV=9,752 POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-5 - LO: 4-5 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 179 Sammi and Jason have $4,000 to deposit in a money market fund earning 5% If they add $2,000 to that account annually, how much will they have accumulated in 15 years? (Show all work.) ANSWER: $51,472 or $51,473 Future value = ($4,000 × 2.079) + ($2,000 × 21.578) = $51,472 or PV=4,000, PMT=2,000, N=15, I=5, FV=51,473 POINTS: DIFFICULTY: Challenging LEARNING O PFIN.BILL.17.4-5 - LO: 4-5 BJECTIVES: NATIONAL ST United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills ANDARDS: STATE STAND United States - AK - DISC: Banking and Interest ARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing 180 Your checkbook balance shows $806.50 The bank statement shows $874.66 The bank paid you $2.50 in interest You issued Checks 1501 ($85), 1507 ($50.16), and 1511 ($20.50), but they are not shown on the statement A service charge of $5 was levied by the bank You made an $85 deposit yesterday that is not on the statement What is the reconciled balance? (Show all work.) ANSWER: Bank $874.66 balance Minus outstanding (155.66) checks Plus 85.00 outstanding deposit Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 63 lOMoARcPSD|10289698 Chapter 4—Managing Your Cash and Savings Adjusted bank balance $804.00 Checkbook $806.50 balance Plus 2.50 interest Minus (5.00) service charge New checkbook $804.00 balance POINTS: DIFFICULTY Challenging : LEARNING O PFIN.BILL.17.4-4 - LO: 4-4 BJECTIVES: NATIONAL S United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills TANDARDS: STATE STAN United States - AK - DISC: Banking and Interest DARDS: United States - KS - DISC: Financial Markets and Inte - DISC: Financial Markets and Interest Rates KEYWORDS: Bloom's: Analyzing Cengage Learning Testing, Powered by Cognero Downloaded by Thanh H?ng (thanhhang.hn131099@gmail.com) Page 64