Financial Management Ch 5

A ______ fund is an account used for saving offered by investment companies.

Money market

A _____ saving bank is owned by depositors

Mutual

A savings plan that requires a certain amount of money to be left for a specified amount of time is NOT a:

Stock option Passbook saving account Money market account

A stop payment order is not designed to

Stop any withdrawals from the account Stop payment of all future checks Stop paying on any check written

Place the steps to writing a check in rank order from first to last

1. Record the date 2. Write the name of the person receiving the funds 3. Record the amount in numbers 4. Write the amount of the check in words 5. Sign the check 6. Note the reason for the payment

Which of the following is a feature of regular savings account

A low or no minimum balance requirement

A savings plan that requires a certain amount of money to be left for a specified amount of time, subject to penalty for early withdrawal, is called a:

Certificate of deposit

Time deposits do NOT include

Checking accounts

A _____ bank is a financial institution that offers a full range of services

Commercial

Share accounts are typically offered by

Credit unions

_____ deposits include checking accounts and other payment methods.

Demand

Which of the following are good sources of information for economic trends

Fortune magazine The wall street journal Business week

Select the bonds that are a type of federal savings bond

I, EE

A _____ cost is what you give up when you evaluate, select and use financial services

Opportunity

A regular savings account usually does not have

Overdraft protection A high rate of interest A high balance requirement

Which of the following are deposit-type institution that serve as financial intermediaries

Saving and loans Credit unions Commercial banks

A _____ card is the document that records the authorized persons on the account

Signature

A _____ is a legal agreement that provides for the management and control of assets by one party for the benefit of another

Trust

Financial services will usually NOT be affected by:

Your answer is correct Stock prices

A _____ ticket or slip is used to add funds to a checking account

deposit

A _______ is your signature on the back of the check

endorsement

Money market accounts are insured by federal deposit insurance, whereas money market mutual _____ are not

funds

A _____ draft account is an interest=bearing checking account at a credit union.

share

Achieving your financial goals and carrying out your daily activities require_____ financial services

various

Fraud charges on a debit card should be reported within ___ 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:

A cash management account

When interest rates are high, you should

Avoid borrowing, if possible "lock in" long term interest rates

______ is a process that calculates interest based on previously earned interest

Compounding