Chapter 7, Personal Finance

If you deposit $100 in an account with an annual interest rate of 6% compounded monthly, then after 12 months you will have

$106.18

When writing a check, include all of the following EXCEPT

An endorsement

The federal deposit Insurance corporation insures depositors against losing their money in the case of a

Bank failure

Credit cards allow you to

Borrow money for a short term

Which of the following financial services is best suited for saving money over a period of years

Certificate of deposit

The first step in balancing a checkbook is

Comparing checks in the check record with those on the statement

To earn high interest rates in certificate of deposit, you must accept all the following limitations EXCEPT

Completing a monthly bank reconciliation

A Jason Alden prepaid phone card is an example of a debit card

False

A finance company specializes in savings accounts and mortgage loans

False

A restrictive endorsement allows you to transfer a check to an organization or another person

False

A savings & loan association is a financial institution that is owned by its members

False

According to the truth in savings law, financial institutions have to guarantee you a minimum interest rate on your deposits

False

Pawnshops will offer payday loans with high finance charges to desperate borrowers

False

Compared with commercial banks, credit unions generally offer

Lower fees and loan rates

In which kind of savings plan does the interest rate vary from month to month

Money market

Problematic financial buisness include each of the following EXCEPT

Savings and loan associations

A dink is the same as dent, according to a wise man

True

A stop payment order is a request that a bank or other financial institution not cash a particular check

True

Money in a checking account is called a demand deposit

True

Overdraft protection is an automatic loan made to an account if the balance will not cover the checks written

True