Finance Quiz #4

The text discusses several types of bonds. Which bond, which is no longer sold, electronically deposits interest into your bank account every six months?

Series HH

The text discusses several types of bonds. Which bond is purchased at face value and has two components to the rate of interest earned—a fixed rate and an inflation rate that changes twice a year?

Series I

Based on the following information, what amount would be subtracted from the bank balance side of a checking account reconciliation? Service charge $39, Outstanding checks $290, Interest $11, Deposit in transit $860.

$290

Given the information here, what should Jason's adjusted checkbook balance be? Bank balance: $ 480​ Outstanding checks: $ 219​ Deposit in transit: $ 122​ ATM fees: $ 44​ Interest earned: $ 5​ Checkbook balance: $ 422​

$383

Evan had three accounts as listed below. In 2014, how much was his total coverage by the FDIC? ● Bank A: $95,000 ● Bank B: $60,000 ● Bank C: $300,000

$405,000

Brenda lost her debit card. When she realized it was gone, her account had $173 in unauthorized charges. She notified her financial institution within two days. How much is she potentially liable for?

$50.

Gwen had three accounts as listed here. In 2014, how much was her total coverage by the FDIC? ● Bank A: $280,000 ● Bank B: $35,000 ● Bank C: $280,000

$535,000

A $350 savings account that earns $5.00 interest in a year has a yield of ________ percent. (Round your answer to 2 decimals.)

1.43

What is the APY for a one-year $5200 certificate of deposit with $884 interest? (Round your answer to 2 decimals.)

17.00%

What is the APY for a savings account with a $430 balance that receives $20 interest for the year? (Round your answer to 2 decimals.)

4.65%

Opal earned 10.0% in her savings account. If she is in the 28% tax bracket, what is her after-tax savings rate of return? (Round your answer to 2 decimals.)

7.20%

Nicholas earned 11.5% in his savings account. If he is in the 33% tax bracket, what is his after-tax savings rate of return? (Round your answer to 2 decimals.)

7.71%

Claudette's grandchildren are 7 and 9 years old. When Claudette passed away, her grandchildren inherited her money. However, the will stipulated that they should not get control of the money until age 25. Which of the following should be set up to provide for the management and control of the funds?

A trust

Brandon lost his debit card. When he realized it was gone, his account had $238 in unauthorized charges. Since he was embarrassed about his loss, he didn't contact his financial institution for 70 days. What is the most that he is liable for?

$238

A demand deposit is also known as

A checking account.

When you select a financial services provider, you should ask all of the following questions except

All of these questions should be asked.

Justin needs to have access to his money in five months. The best option for his savings is a

Money market account.

Another name for a regular savings account is a

Passbook or statement account.

Louise got caught in a cash flow trap and desperately needed money quickly. Unfortunately, she didn't shop around and she went to a ________. As a result, her annual percentage rate was higher than 780%.

payday loan company

When Jack picked up a personal computer from the ________, he was really leasing it.

rent-to-own center

Cathy needs a full range of financial services, including checking, savings, and lending. To which of the following should she go?

A commercial bank

Billy accepted a job at a company that specializes in providing money for short-term retail lending. Where did he go to work?

A credit card company

All of the following are non-deposit institutions except

A credit union.

All of the following are deposit institutions except

A finance company.

Zach wants to open an account, but he doesn't know which kind is appropriate. He is interested in earning a higher interest rate and knows that he might not be able to write many checks from his account. In addition, he plans to keep at least $1,000 in his account so he can avoid paying a fee. He definitely wants to have federal deposit insurance. What kind of account should he open?

A money market account

Amber wants to open an account, but she doesn't know which kind is appropriate. She is interested in earning a higher interest rate and plans to keep at least $1,000 in her account so she can avoid paying a fee. Amber wants to open her account at an investment company and understands that her account will not be covered by federal deposit insurance. What kind of account should she open?

A money market fund

Harvey needed some cash quickly, so he received a short-term loan based on the value of an old ring. Where did he go?

A pawnshop

Which of the following will likely provide the most expensive loans?

A payday loan company

A drawback of a regular savings account is

A relatively low rate of return.

A time deposit is also known as

A savings account.

Franklin is planning for a purchase of a vehicle in two years. Since he wants to be certain that his funds are safe (insured), which of the following should he use?

A savings account.

An all-in-one account that provides a complete financial services program for a single fee is known as

An asset management account.

Will wants to open an account with $500 that will allow him easy access to his funds (by checks, ATMs, or debit card usage) from many locations. He also wants to earn at least a low interest rate and have federal deposit insurance. What kind of account should he open?

An interest-earning checking account

Which of the following usually offers money market mutual funds?

An investment company

Many people make mistakes when managing current cash needs. Which of these is NOT a frequently made mistake?

Budgeting spending

When Angela wanted to provide financial security for her dependents, she considered purchasing a product that would provide income replacement in the event of her untimely death and also provide a savings/investment component while she is alive. Which company would she most likely do business with?

Life insurance company.

The text discusses several types of bonds. Which bond pays interest for 30 years that is exempt from state and local taxes?

Series EE

Why are some financial service operations referred to as financial supermarkets?

They offer a combination of services from one source.

When Imogene brought a necklace to a ________, she received a loan based on its value.

pawnshop