Chapter 5

bonds that are a type of federal savings bond.

EE I

Benefits of money market accounts include:

a favorable interest rate deposit insurance

an interest-bearing checking account at a credit union?

a share draft

A deposit ticket is used to add funds to

an account

Share draft accounts at a credit union:

are interest bearing

What types of financial institutions have federal deposit insurance through FDIC?

commercial banks savings and loans

The rate of return is calculated by

dividing the interest earned for the year by the amount in the savings account.

Drawbacks of money market accounts include:

higher minimum balance required. some institutions charging for low balances.

Financial services include:

investments. borrowing. savings. financial planning. insurance. payment services.

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

money market

Common trade-offs (opportunity costs) for financial services include Blank______.

no-fee services convenience liquidity

A money market fund is a

savings instrument

The rate of return is:

the percentage increase in the value of an account

Earnings on savings are commonly measured by

the rate of return, or yield.

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

You are in the 25% tax bracket. So, the yield on the savings account is 8%, and the after-tax savings rate of return is ______.

6%