Review one
Trust
A legal agreement that provides management in control of assets by one party for the benefit of another
Compound interest
A process that calculates interest based on previously earned interest
Certificate of deposit
A savings plan requiring that a certain amount be left on deposit for a stated time to earn a set interest rate
Credit
An arrangement to receive cash goods or services now and pay for them in the future
Atm
Automated teller machine is specialized computer that is convenient to manage account holder funds
Which is the most liquid asset
Certificate of deposit, US savings bond, checking account, mutual funds
The FDIC insured savings accounts typically requires a minimum balance of usually $1000 and has earnings based on the market interest rates
Certificate of deposit, money, market fund, money, market account regular savings account
What type of account is best for every day transactions
Checking account, money market account, savings account, certificate of deposit
Which of the following financial institutions typically have the highest fees
Credit unions, commercial banks, check, cashing in payday loan, companies, or MMA
The FDIC cover, safety deposit boxes and their contents, if a bank goes out of business? T or f
F
The chair of the federal reserve is Gary Gensler, true or false
F
The federal reserve is cheese authority for printing all monetary funds? T or F
F
The FDIC covers dogs, mutual funds, and bonds up to 250,000 true or false
FalSe
A commercial bank typically has lower fees when compared to other banking institutions true or false
False
Credit unions are user owned for profit organizations true false
False
The NCUA was established in 1970 and federally insured banks ture or false
False
FDIC
Federal deposit insurance corporation secures financial institutions up to 250,000 dollars back by the US government
Savings and loans assoc
Financial institution that traditionally specialized in savings accounts and mortgage loans
Commercial banks
For-profit financial institution that offers full range of financial services to indiv, business, gov
Money market account
Hey savings account that requires a minimal balance usually $1000 and has earning based on intrest
Simple intrest
Interest computed on a principal only without compounding
Which of the following is a common feature of financial institutions?
Investment trading check and saving accounts, mutual funds, access to investment products
Which savings account will earn you the least money
One that compounds interest daily, one that earns simple interest, monthly one that earns simple interest daily, one that compounds interest monthly
Beware of this tax variation service, which offers the convenience of getting a refund immediately when you're really getting a loan interest rate is high as 100%
Refund anticipation, loans auto title loans convenience, center payday loans
Regular savings account
Safe storage of funds for future use commonly referred to as time deposits, low risk
Liquidity
The ability to readily convert financial resources into cash without a loss in value
The federal reserve
The central bank of the United States and chief monetary authority in the US
Principal
The sum of money borrow or invested
Which of the following statement about check cashing company is true?
They charge high fees they sometimes offer free services. They delay when you can access your cash. They have limited operating hours.
Why is it important to check your bank statements?
To avoid spending more than what is on your account to detect any errors in your account to determine if you were charged any fees, and all of the above
Savings and loans associations are always for profit true or false
True
The FDIC is backed by full faith and credit of the US government true or false
True
The formula for calculating simple interest is principal, acts rate, and interest. X time, true or false?
True
Credit unions
User owned nonprofit cooperative financial institution that is organized for the benefit of its members
Which savings account were earn you the most money
When the compound interest daily, one that compounds interest monthly one that earns simple interest daily, one that earn simple interest monthly
