math test

Allen Stewart purchased a $2,000 bond at 110. The bond pays 6%. 1. What was the cost of the bond? $2,200, $2,400, $1818.18 2.What was the annual interest? $144, $120, $132 3. What is the yield (to the nearest tenth of a percent)? 5.5%, 6.0%, 7.3%

1. $2,200 2. $120 3. 5.5%

Ink, Inc. has 40,000 shares of stock outstanding. The company declares dividends of $120,000. 1. What is the dividend per share of stock? $30.00, $3.00, $300.00 2. If Tim Worker owns 45 shares of, stock, what is his share of the declared dividends? $1,350.00, $13,500, 135.00

1. $3.00 2. $135.00

Using the chart above, find the total amount and amount of interest paid in the following compound interest problems. $3,000 at 8% for 5 years. Compounding: Total Amount: Interest Amount: annually- 1. 2. semiannually- 3. 4. quarterly- 5. 6.

1. $4,407.98 2. $1,407.98 3. $4,440.73 4. $1,440.73 5. $4,457.84 6. $1,457.84

Two of the most common services for your money offered by banks involve either checking accounts or certificates of deposit.

False

When a person purchases stock in a company, he is in reality loaning money to the company.

False

John Jimenez purchased a $5,000 bond at 90. The annual interest is 5%. 1. What was the cost of the bond? $450, $4,500, $9,500 2. What was the annual interest? $225, $250, $475 3. What is the yield (to nearest tenth of a percent)? 5.6%, 5.0%, 9.5%

1. $4,500 2. $250 3. 5.6%

A person selecting a bank might consider how easy it is to reach the bank from work.

True

A person selecting a bank should consider the services they need.

True

A person selecting a bank will consider how secure his return is.

True

A savings account is generally considered to be like cash.

True

A trust is an agreement whereby a person or bank manages the estate according to the specific directions of the owner of the estate.

True

A will is a legal document

True

ATM stands for Automated Teller Machine.

True

An ATM is a special computer terminal that permits the customer to make deposits and withdrawals whether the bank is open or not.

True

Another part of your return may be that if the company becomes successful, you can sell your stock for more money than you paid for it.

True

Certified checks are guaranteed by the bank itself, not just by your signature.

True

Certified checks are items that will be accepted even when your personal check will not.

True

College education for children and retirement are two major goals that require financial planning.

True

Dividends are part of the return you receive on your investment when you buy stock.

True

Estate planning is not just for the wealthy.

True

If you are going to a foreign country, a bank can sell you money of that country in exchange for dollars.

True

In a trust, an estate, or other property or money, is given to a person or institution to manage.

True

In order to make a financial plan, you need to understand your income, savings, living expenses, and credit obligations.

True

Making sure the check register and bank statement agree is called "reconciling" the statement.

True

Most investments can decline as well as increase in value.

True

PIN stands for Personal Identification Number.

True

Purchasing a bond is like loaning money to the company for interest.

True

Savings accounts enable you to earn interest for money you place, or deposit, in the bank.

True

Savings accounts pay interest on the funds deposited.

True

Security can be an issue with the use of ATMs

True

Special taxes may be placed on an estate.

True

There are often fees associated with investments that reduce the return you actually have.

True

Traveler's checks can often be replaced if they are lost or stolen, and for this reason they are safer to carry than cash

True

Trusts have become a widely used way to distribute an estate.

True

Typically, the profit from a living trust is paid to the owner during his lifetime, and to whomever he names upon his death.

True

When you buy a mutual fund, you purchase a share of a collection of investments.

True

If a mutual fund does not charge a fee when the fund is purchased, it is called a 1. load 2. no load fund

no load fund

The collection of investments in a mutual fund is called a 1. share 2. portfolio

portfolio

A person selecting a bank need not consider safety issues

False

ATMs are particularly helpful for people on regular schedules.

False

According to the lesson, ancient civilizations did not have banking services.

False

It is legal to write a check when your account does not have funds to cover it

False

It isn't necessary to consider convenience issues when selecting a bank.

False

Joint ownership guarantees there will be no problems in transferring property.

False

Mutual funds are no longer a very popular investment.

False

On the date the bond term matures, the face value of the bond plus interest is paid back to you

False

Only a lawyer can help with estate planning

False

Only you and the bank manager can open your safety deposit box.

False

Savings accounts are never guaranteed by a government agency.

False

There are never fees associated with ATM transactions.

False

To provide for the education of minor children would not be a reason to set up a trust.

False

Tim worker went to his bank. He deposited $72.15 and the teller credited $5.79 to his account for interest. If Tim's initial balance was $1,226.14, what will his new balance be? $1,148.20 $1,159.78 $1,292.50 $1,304.08

$1,304.08

Using the formula in model 1, choose the correct answers for the new balance and the amount of interest earned in the following compound interest problem. P(1 + r)n $650 at 8% for 14 years, compounded annually. Total Amount = $ 2,009.18, $1,909.18, $1,809.18 Interest Amount =$ 1,159.18, $1,359.18, $1,259.18

$1,909.18 $1,259.18

Compute the amount of interest earned in the following simple interest problem. A deposit of $100 at 8% for 20 years = _____. $1.60 $16.00 $160.00 $1,600.00

$160.00

Compute the amount of interest earned in the following simple interest problem. A deposit of $1,600 at 6% for 180 days = _____. $17.28 $48.00 $480.00 $17,280.00

$17.28

Compute the amount of interest earned in the following simple interest problem. A deposit of $800 at 3.5% for 7 years = _____. $159.99 $196.00 $1,599.99 $1,960.00

$196.00

Compute the amount of interest earned in the following simple interest problem. A deposit of $10,000 at 9.5% for 90 days = _____. $237.50 $855.00 $23,750.00 $85,500.00

$237.50

Marie Daggett went to her bank each week and opened a club account. She deposited $21.75 per time period. If she made 12 deposits before interest was credited, how much would she have deposited before interest was credited? $9.75 $33.75 $181.25 $261.00

$261.00

Using the formula in model 1, choose the correct answers for the new balance and amount of interest earned in the following compound interest problem. $1,050 at 6%, for 25 years, compounded annually. P(1 + r)n Total Amount = $ 4,306.46, $4,506.46, $4,406.46 Interest Amount =$ 3,456.46, $3,256.46, $3,356.46

$4,506.46 $3,456.46

Prescott Sporting Goods Company has 45,000 shares of stock outstanding. What total dividend declaration would be necessary for the dividend per share to be $1.00? $450.00 $4,500.00 $45,000.00 $450,000.00

$45,000.00

Bill Barkley compares his checkbook register, cancelled checks, and bank statement which shows a balance of $500. He finds two outstanding checks for $85.35 and $42.10. There is also an outstanding deposit of $210. What is his adjusted balance? $162.55 $417.45 $582.55 $837.45

$582.55

Using the formula in model 1, choose the correct answers for the total amount and amount of interest earned in the following compound interest problem. $5,000 at 3% for 7.0 years, compounded annually. Total Amount = $ 6,249.37, $6,149.37, $6,349.37 Interest Amount =$ 1,149.37, $1,349.37, $1,249.37

$6,149.37 $1,149.37

Compute the amount of interest earned in the following simple interest problem. A deposit of $4,500 at 5% for 3 years: $6.75 $67.50 $675.00 $6,750.00

$675.00

Fred Merkel went to his bank and opened a club account. He deposited $19.75 every week. If he made 5 deposits before interest was credited, how much would he have deposited before interest was credited? $3.75 $14.75 $24.75 $98.75

$98.75

MS & T has 100,000 shares of stock outstanding. If it declares dividends of $50,000 1. What is the dividend per share? $5.00, $0.50, $50.00 Marty owns 25 shares of stock in MS & T. 2. What is his share of this declared dividend? $1.25, $125.00, $12.50

1. $0.50 2. $12.50

A person selecting a bank does not need to consider whether the staff is friendly and helpful.

False

Number each of the following steps from 1 to 7 to identify the steps needed to reconcile a bank statement. -Check to be sure that all deposits included in your record book are included and service charges are subtracted. -Make a list of outstanding checks, with the amounts for which they were written. -The statement should agree with your check register. -Arrange all of the canceled checks in numerical order. -Subtract the outstanding checks from the ending balance. -After checking for service charges, check the bank statement for other charges. -On the bank statement, find the amount the bank has credited you. It is called "ending balance."

1. Arrange all of the cancelled checks in numerical order 2. Make a list of outstanding checks, with the amounts for which they were written 3. On the bank statement, find the amount the bank has credited you. It is called "ending balance" 4. Subtract the outstanding checks from the ending balance 5. Check to be sure that all deposits included in your record book are included and service charges are subtracted 6. After checking for service charges, check the bank statement for other charges 7. The statement should agree with your check register

Name three of the five ways to dispose of an estate.

1. Neglect to make a will, and the law will dispose of it. 2. Make a will leaving it in a trust. 3. Put all of the property in joint ownership. The spouse will be the sole owner upon death.

Match the name of each bank service to its description. 1. a check that is guaranteed by the bank itself 2. service to provide customers with money of foreign countries 3. a service related to investments and estate planning 4. a storage place for valuable items 5. a check that can be replaced if it is lost or stolen (Safety deposit box, Currency exchange, Financial counseling, Cashier's check, Traveler's check)

1. Traveler's check 2. Currency exchange 3. Financial counseling 4. Safety deposit box 5. Cashier's check

Choose as many answers as apply. Which of the following transactions can be accomplished with online banking? 1. View your account status. 2. Get cash. 3. Transfer funds. 4. Pay bills without going to the bank.

1. View your account banking 3. Transfer funds 4. Pay bills without going to the bank

Choose as many answers as apply. According to the lesson, things you can do to help you decide on a bank include: 1. compare interest rates 2. determine which bank has the most attractive buildings 3. visit two or three branch offices 4. ask friends where they bank

1. compare interest rates 3. visit two or three branch offices 4. ask friends where they bank

In addition to banks, financial services are available at what locations? (select all that apply) 1. credit unions 2. movie theaters 3. hardware stores 4. brokerage houses

1. credit unions 4. brokerage houses

Choose as many answers as apply. The monthly bank statement includes the following items of information: 1. descriptions of the type of transaction 2. the name of the person or company the check was written to 3. the amount of money involved in each transaction 4. the adjusted balance

1. descriptions of the type of transaction 3. the amount of money involved in each transaction 4. the adjusted balance

Choose as many answers as apply. Which of the following services are generally available at a bank? 1. financial counseling 2. fire insurance 3. wills 4. estate planning

1. financial counseling 3. wills 4. estate planning

Solve the following dividend problem. Alameda Tent Company has 75,000 shares of stock outstanding. What total dividend declaration would be necessary for the dividend per share to be $2.00. 150 1,500 15,000 150,000

150,000

Choose as many answers as apply. Which of the following statements are true of checking accounts? 1. Most checking accounts pay interest on deposits. 2. When you write a check the bank takes money from your account and pays it to the person who submits the check. 3. The bank keeps track of how much money you have left in your account and sends you a statement each month. 4. A charge is usually made for this service.

2. When you write a check the bank takes money from your account and pays it to the person who submits the check. 3. The bank keeps track of how much money you have left in your account and sends you a statement each month. 4. A charge is usually made for this service.

A will can be written by ________. 1. a banker 2. an attorney 3. a financial planner 4. a teacher

2. an attorney

Choose as many answers as apply. The services you require that may affect your banking decision include: 1. valet parking 2. debit card 3. electronic banking 4. ATM

2. debit card 3. electronic banking 4. ATM

The executor of an estate does the following. 1. creates a will 2. takes an inventory of the estate's assets 3. gives medical advice 4. gives financial advice 5. handles financial matters as designated in the will

2. takes an inventory of the estate's assets 5. handles financial matters as designated in the will

Choose the best answer. Which of the following is not a type of savings account? 1. passbook account 2. statement account 3. club account 4. automatic account

4. automatic account