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