Chapter 4 Financial Services: Servings Plans and Payment Accounts

Which of the following is the maximum amount of liability if a card issuer uses the same rules for lose or stolen debit card as credit cards.

$50

Concerns of online banking include

- Online scams - Security Violations - overspending due to ease of access

Which of the following are considered demand deposits ?

- Payment accounts - Checking accounts

financial services include:

- investments - financial planning - insurance -borrowing - savings - payment services

Credit alternative to be use for borrowing if an individual needs more cash than is available include.

- personal loans - credit card cash advanced

If the inflations rate is 3%, a saver would want to earn an interest rate granter than

3 percent

The _______ is the percentage rate expressing the total amount of interest trust would be received based uptown time and compounding.

APY

A stole punnet order is designed to:

Avoid payment of a specific check

_______banks are organized as corporations, with investors contributing the capital for operations

Commercial

A type of card is a plastic access card used in computerized banking transactions

Debit card

Some of the basic concerns of a financial services customer when comparing financial services include

How can I minimize costs for the curing and savings? Will I be able to borrow money when I need it? When can I get the best return on savings?

A savings bond that has an intrest rate based on two commonents is a

I Bond

A_____fund is an account used for savings offered by investment companies.

Money market

Check cashing do not offer the following services.?

Payday loans

Life insurance have other uses, including:

Providing for dependents Savings alternatives Investments

Selection of a savings plan is influenced by

Rate of Return Inflation Tax considerations Liquidity Safety Restrictions And fees

Which of the following is not an example of a type of financial service that is focused on payment services? In other words, which of the following does not involve payment of money on your part?

Regular Savings Account

A money fund is a

Saving instrument

A major concern with prepaid debit cards is which of the following?

The high fees charged

Which of the following is a service not offered by savings and loans?

Trip planning services

Financial services can change due to such factors as changing interest rates and rising consumer prices.

True

A deposit ticket is used to add funds to

an account

A specific stop-payment order given to a bank is designed to:

avoid paying a specific check that is lost or stolen

When comparing savings accounts rates of return, you should choose one that:

beats the rate of inflation

Deposit institutions would not include a:

brokerage firm

Overdraft protection is designed to:

cover underfunded checks

A certified check is a personal check with

guaranteed payment

Financial services will usually not be affected by:

stock prices

Overdraft protection is an automatic loan made to checking account customers to cover checks written in excess of:

their balance

A ______ draft account is an interest-bearing checking account at a credit union

to share Or Are interest bearing until a minimum balance is maintained

Redeemed EE bonds can avoid federal taxation if

used to pay college tuition and fees

A signature card is the document that helps the bank determine who are the ______ on the account

Authorized persons

A_______ bank is a financial institution that offers a full range of services.

Commercial

Benefits of online banking include:

Conscience for transactions Time savings Email noire see for due dates

Common payment choices include:

Debit. Credit cards Cash Checks

Money market account at commercial banks are insured by________, whereas money market funds are not

Federal deposit insurance

Compounding is the process that calculate earning based on previously earned:

Interest

To a nice long term financial goals, many people off_______ for a _____return

Liquidity Higher

Which of the following devices do savings and loans offer

Mortgages Savings accounts

Writing check in rank order

Record date Wrote the names of the persons reviving the funds Record the amount of the check in figures or numbers Write the amount the check In words Sign the check Note the reason for the payment

Stale checks

Six months

A credit union is owners by

The members

Some tax advantages of EE bonds are that:

There is no federal income tax until redeemed Interest is exempt from state and local taxes

Benefits of online banking include:

Time savings Conveyances for transactions Email notices for due dates

What is the purpose of liquidity

To allow you to withdraw money on short notice

What's is the main function of a finance company?

To make loans to consumers and small businesses

Which is the main function of a mortgage company?

To provide loans to purchase homes

True or false: A current shortage of cash will require two basic choices: liquidate(withdraw) savings or borrow.

True

True or false: asset management accounts are collection of financial services offered for a single fee.

True

A ________is a legal agreement that provides for the management and control of assets by one party for the befit of another.

Trust

Debit cards are different from credit cards because

Your spending your own money when you use a debit card

Which of the following are not proper actions to take if you are a victim of identify theft ?

file police report Call national credit union Complete ID theft addidavit Contact SSA Check post office Maintain record of you actions Locate person who stole your identity Ask your friend to help find theif Leave area until problem is solved

A trust is a legal agreement that:

-Enables management of assets -Is created by one party for benefit of another -provides control of assets

A _________ union is a user owned, non profit, financial institution that is organized for the benefit of its members.

Credit

A customer has more security in case of fraudulent transactions when a debit card is processed like a(n)

Credit card

Which for the following deposit type institutions serve as financial intermediaries?

Credit unions Commercial banks Savings and loans

A certificate of __________ is a savings plan requiring that a certain amount be left on deposit for a stated time period.

Deposit

Mutual banks are owned by

Depositors

The biggest advantage of suing APY is

Easy to compare rates

Common choices for making payments include all of the following except

installment loans

What is the main purpose of life insurance?

provide financial security for dependents

The rate of ______ is the percentage increase in the value of savings as a result of interest earned.

to return

Which of the following services do savings and loans offer?

Savings account Mortgages

Historically, savings and loans specialized in:

Savings accounts and mortgage loans

A _______ and loan association traditionally specializes in savings accounts and mortgage loans.

savings

A _____is your signature on the back of the check

Endorsement

A_______CD has earnings based on the performance of the stock market.

Indexed

Check cashing offer the following services:

Electronics tax filing Until it's bill payments Money orders

Debit cards allow you to wait to deduct amounts from your account

False

True or false: Credit alternatives are only for people of limited resources.

False

Truth in Savings Act requires the following items to be disclosed:

Fees on deposit accounts Interest rate A hall percentage yield Other terms and conditions of the savings plan Annual percentage yield

1. Which type id financial institution typically does not have federal deposit insurance? 2. And which does not?

1. Investment companies 2. Commercial banks Savings and loans Credit unions

Which of the following is not a common fee associated with prepaid debit cards?

Inflation fee

The two pairs of interest on an I bond are a(n)

Inflation rate that changes semiannually Fixed rate of interest for the life of the bond

All of the following are the deposit type institution thy serve as financial intermediaries except:

Insurance companies

Which services do mortgage companies typically not offer?

Savings accounts Checking accounts with unlimited withdrawals Frequent access to cash machines

Which of the following is true regarding credit cards vs debit cards ?

With credit cards, you are borrowing money but you are spending your own money with debit cards.

A _____card is the document that records the official signatures of the person or persons authorized to write check on the account

Signature card

A failure to reconcile your bank account each month can result in not knowing which of the following

If your bank is overcharging you for fees

1 A regular savings account usually offers 2 It does not offer

1 a low or no minimum balance requirement 2 overdraft protection A high balance requirement A high rate of interest

1. The drawback of US savings bonds is: 2. Benefits

1 Low rates for early redemption 2. Government guarantee Exemption from state and local taxes Low minimum deposit

A $200 savings account earned $8 after a year would have a rate of return, or yield, of percent.

4

Fraud charges should be reported within how many days of receiving your statement to protect your right not to be charged for the transaction?

60

Another name for an automated teller machine (ATM) is

A cash machine

Another name for an asset management account is

cash management account

What is not typically a basic concern of a financial service customer ?

Does the bank offer tax preparation services ?