Finance tompkins ch 4

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Compared to other depository financial institutions, credit unions:

Charge lower rates on loans

The Federal Deposit Insurance Corporation (FDIC) covers stocks, bonds, and mutual funds purchased at banks

False

Funds in commercial banks are protected by the:

Federal Deposit Insurance Corporation

A _____ is an interest-bearing checking account.

NOW account

Which of the following is true of safe-deposit boxes offered by banks?

They can be used as a storage place for important documents

When doing account reconciliation, interest earned on your account should be:

added to your checkbook ledger

Christina works at a company that offers to directly deposit her paycheck into her personal bank account. This service is called:

an electronic funds transfer system (EFTS) service

money market deposit accounts

are federally insured

s the routine, day-to-day administration of cash and near-cash resources, also known as liquid assets, by an individual or family.

cash management

Whenever you write a check or make a deposit, an entry should be made in your

checkbook ledger

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

convenience, services, and cost

In account reconciliation, one of the steps in calculating adjusted bank balance is

deducting total withdrawals still outstanding from bank balance

Which of the following features is a disadvantage of asset management accounts

deposit insurance

The FDIC insures each ____ up to a stated maximum dollar amount at any given financial institution.

depositor

Cash is the only kind of liquid asset

false

Cash management does not help in personal financial planning.

false

The recent extremely low interest rates favor investors and boost the incentive to save.

false

cash and near-cash resources are known as ____.

liquid assets

Higher interest rates on certificates of deposit are associated with:

longer maturities

Individuals prefer to invest their savings in stocks rather than traditional instruments like Treasury Bonds because of

low interest rates

Credit unions are

member-owned financial cooperatives

Liquid assets would include your savings account and your

money market deposit account

offer banking services but do not accept deposits like traditional banks.

nondepository institutions

Low interest rates are helpful in:

reducing the service cost on the national debt

Interest rates are the lowest on

regular checking account

A check you issued last week has been stolen. You can prevent the amount on the check from being withdrawn from your account by an unauthorized person by:

requesting a stop payment

A(n) _____ is a rented drawer in a bank's vault.

safe-deposit box

It costs financial institutions more if their customers perform

teller transactions

The least expensive method for banks to interact with their customers is:

through the internet

You are going on an overseas trip, and you want to carry checks. You should purchase:

traveler's check

A certified check is a personal check that the bank certifies to guarantee that funds are available.

true

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

true

Daily balance requirements are an important criteria while comparing checking accounts offered by different banks.

true

Debit and ATM card transactions are linked to your checking account

true

Interest earned for a period should be added to the adjusted bank balance while reconciling your account.

true

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding for a given nominal interest rate.

true


Kaugnay na mga set ng pag-aaral

[RPH] Rizal Retraction Must Know Facts

View Set

Reproduction & Development Test - Multiple choice - 2

View Set

Geometry Conditional Statements (Chapter 2-2 and 2-3)

View Set

CH 32-At Slaughterhouse, Ch 39: "It's Dude Time!", ch 37-The Rise of the New Global Elite, ch 36-Diversity & Power elite, ch 35-The Power Elite, Reading 33: Wingfield's "Racializing Glass Escalator

View Set

Chapter 24 performance appraisals

View Set

OChem Final Study - Quiz and Test

View Set

HRM Chapter 4- Workers, Jobs, and Job Analysis

View Set

PN Stress and Coping Assessment 2.0

View Set