Ch. 5

What is the maximum you can lose if you notify your bank of a lost debit card within two days?

$50

If you find and report an electronic funds transfer error on your bank statement, what is the maximum number of days the institution has to investigate and resolve the error?

45 days

Financial assets covered by federal deposit insurance include:

A certificate of deposit at Bank of America

Federal deposit insurance:

A fail-safe for all financial assets you can buy

A certificate of deposit will get you:

A higher rate of return than most savings accounts

A money market mutual fund is:

A mutual fund that buys securities that mature in under a year, so it is safe and fairly liquid

A money market deposit account is:

A type of savings account

A certificate of deposit is:

A type of savings account with a higher rate of return than most

Liquidity in finance is:

How readily an asset can be converted to cash

A money market mutual fund might purchase:

Municipal bonds, T-Bills, Commercial paper

Sales finance companies are different from consumer finance companies in that:

Sales finance companies help to finance the purchase of a particular product while consumer finance companies fund any type of purchase

Money market means:

Short-term instead of long-term like in the debt market

A credit union's non-profit status has what effect?

Some benefit in pricing to its members for deposits and loans

Credit unions are different from regular banks in that:

They are member-owned

Which of these is the least liquid? A house b. Cash c. A checking account d. A six-month certificate of deposit

a

The interest rate of most concern to a savings account depositor is the

annual percentage yield (APY).

The safest PINs and passwords in electronic banking are those that are

as complicated as allowed by the institution.

An interest-bearing savings instrument that requires people to deposit money for a fixed amount of time is called a(n)

certificate of deposit.

If you wanted to set up a checking or savings account with another person that granted each of you the right to make withdrawals without consulting the other, you would choose a(n)

joint tenancy account with right of survivorship.

Finance companies main purpose is to:

just lend money

The type of checking account that is available through a credit union is called a(n)

share draft account.

At the death of one of the owners, an asset held jointly by two people would go to the decedent's heirs rather than to the other joint owner if the asset is held as

tenancy in common.