Personal Finance Chapter 5

Which of the following statements regarding debit and credit card liability is correct

a debit card carries more risk of loss to the card holder

an all-purpose account offered by investment brokers that provides several services is a:

asset management account

In recent years, membership in credit unions has:

become more flexible

Which of the following is organized as a corporation and owned by stockholders?

commercial banks

checking accounts are frequently referred to as _________ deposits

demand

The profits from a mutual savings bank go to the:

depositors

When preparing a bank reconciliation, interest earned on your checking account is added to the bank statement balance.

false

Joan Zemke expects interest rates to decline over the next few months. To maximize her long-term earnings she should use a:

five-year certificate of deposit

An advantage credit unions may have over other financial institutions is:

lower loan rates

A trust has the purpose of:

managing the assets of a person

A common service offered by investment companies is:

money market funds

To avoid high fees for cash loans, a person should avoid borrowing from a:

pawnshop

Time deposits are another name for:

savings accounts

When interest rates are rising, a person would be best served by:

short-term savings instruments

the storage of funds for future use is a purpose of __________, which include savings accounts and certificates of deposit

time deposits

a debit card deducts the amount of purchases from your checking account by:

transferring money electronically

The most frequent users of payday loans are workers who have become trapped by debts or poor financial decisions.

true