Chapter 4 Financial Services: Saving Plans and Payment Accounts
The dollar limit for FDIC insurance is currently.
$250,000
Annual percentage yield is also commonly expressed as:
APY
What are the steps to writing a check in rank order from first to last.
1. Record the date 2. write the name of the person 3. record the amount of the check in numerals 4. write the amount of the check in words 5. sign the check 6. note the reason for payment
What is true about mobile transfers
1. They can be made through wireless devices such as smartphones 2. They are expanding
Selection of a savings plan is influenced by:
1. rate of return 2. inflation 3. tax considerations 4. liquidity 5. Safety restrictions 6. Fees
Another name for an asset management account is:
A cash management account.
An automatic teller machine (ATM) is also called as a(n)_______ machine
Cash
_____ is a process that calculates interest based on previously earned interest.
Compounding
This type of card is a plastic access card used to computerized banking transactions
Debit Card
Common payment choices include
Debit cards cash credit cards checks
_____ deposits include checking accounts and other payment methods.
Demand
Web-only banks have declined in recent years True or False
False
A certified check is a personal check with:
Guaranteed Payment
Asset management accounts are commonly offered by:
Investment companies
A _____ draft account is an interst-bearing checking account at a credit union.
Share
Financial services will usually NOT be affected by:
Stock Prices
Which of the following is not a reliable source of information for economic trends.
The blog spot Web site
A major concern with prepaid debit card is
The high fees often charged
The rate f return is:
The percentage increase in the value of an account
Banking online and electronic banking have expanded in recent years True or False
True
One criterion for choosing a saving plan is the interest rate. True or False
True
A _____ ticket or slip is used to add funds to a checking account
deposit
A(n) _____is your signature on the back of the check.
endorsement
To achieve long term financial goals, many people trade off______ for a______return
liquidity higher
Financial insinuations consider checks that are older than _____ to be stale dated,
6 monthes
Overdraft protection is designed to:
Cover underfunded checks
Your maximum liability for a lost or stolen debit card is $500 if the card issuer uses the same rules that apply to lost or stolen credit cards. True or False
False
Your maximum liability for a lost or stolen debit card will be $50 if you notify the financial insinuation with ______ days.
Two
Commercial banks offer services to
1. individuals 2. businesses 3. government agencies
You are in the 25% tax bracket. So, they yield on the savings account is 8%, and the after-tax savings rate of return is:
6%
Unauthorized use of your debit card number to make a purchase should be reported within _____ days of receiving your statements to protect your right not to be charged for the total amount of transactions
60