finance 101

Select the bonds that are a type of federal savings bond.

EE I

_______is the attribute of savings accounts that allows you to withdraw money on short notice without a loss of principal or fees.

Liquidity

______ bonds are not a type of federal savings bond.

Municipal

Another name for an asset management account is

a cash management account

Share draft accounts at a credit union:

are interest bearing.

The savings alternative that offers less liquidity is:

certificates of deposit.

Minimizing bank fees may require:

comparing financial institutions.

Common payment choices do not include Blank______.

corporate bonds municipal bonds

High-cost financial services typically do not include

credit unions. mutual savings banks.

Financial services include all of the following except:

debt counseling

Use a credit card to:

delay the payment for a purchase. buy online for large purchases. build credit history.

A ________ ticket or slip is used to add funds to a checking account. This is a one-word answer.

deposit

A certified check is a personal check with Blank______.

guaranteed payment

Financial services will usually not be affected by:

historically lowest consumer prices

Common choices for making payments include all of the following except:

installment loans.

All of the following are deposit-type institutions that serve as financial intermediaries except: Multiple choice question.

insurance companies.

Financial services include:

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

A common trade-off (opportunity cost) for financial services includes having to keep money in accounts longer to obtain higher interest rates. This leads to reduced Blank______.

liquidity

Common mistakes made when managing current cash needs include:

overspending using savings for current expenses lacking sufficient funds

From which of the following sources can money orders be purchased?

post offices stores financial institutions

Saving funds for future use is necessary for financial

safety

A money market fund is a Blank______.

savings instrument

A ______ blank draft account is an interest-bearing checking account at a credit union. This is a one-word answer.

share

Drawbacks of money market accounts include:

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

The interest rates charged by pawnshops are regulated by Blank______.

the state

Overdraft protection is an automatic loan made to checking account customers to cover checks written in excess of:

their balance.

What is the main function of a mortgage company?

to provide loans to purchase homes

True or false: The rate of return you earn on your savings account should be compared with the inflation rate.

true

Certified checks, cashier's checks, and money orders allow you to make a payment that the recipient knows is______ blank

valid, good, acceptable, or guaranteed

Online payments do not include Blank______.

Smart cards

Benefits of money market accounts include

a favorable interest rate. deposit insurance.

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

commercial banks credit unions savings and loans

True or false: Pawn shops are only used during economic downturns

false

Pawnshops charge blank_____ fees than other financial institutions.

more

High-cost financial services typically include Blank______.

pawn shops payday loans rent-to-own centers check-cashing outlets

The rate of return is:

the percentage increase in the value of an account.

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 Blank______.

6 %

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, the before-tax savings rate of return is 12%, the after-tax yield on the savings account is:

9%

_______ deposits include checking accounts and other payment methods. This is a one-word answer.

Demand

Benefits of money market accounts include:

a favorable interest rate. deposit insurance.

A regular savings account usually offers: Multiple choice question.

a low or no minimum balance requirement.

Asset management accounts are commonly offered by Blank______.

investment companies

What type of financial institution typically does not have federal deposit insurance?

investment companies

Which of the following exists primarily to provide loans to purchase homes?

mortgage companies

A regular savings account usually does not have

a high rate of interest. a high balance requirement. difficulty in withdrawal.

A regular savings account usually offers

a low or no minimum balance requirement.

Use a debit card to:

avoid an annual fee. avoid possible interest charges. avoid bills to be paid in the future.

When comparing savings accounts rates of return, you should choose one that:

beats the rate of inflation.

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 Blank______.

certificate of deposit

Overdraft protection is designed to:

cover underfunded checks

Overdraft protection is designed to:

cover underfunded checks.

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

liquidity no-fee services convenience

By comparing financial institutions, a customer can:

minimize ATM fees. lower bank fees

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

money market

A savings plan that requires a certain amount of money to be left for a specified amount of time is not a:

money market account. stock option. passbook savings account.

The rate of blank______ is the percentage increase in the value of savings as a result of interest earned.

return, interest, yield, or returns

Which of the following are deposit-type institutions that serve as financial intermediaries?

savings and loans associations commercial banks credit unions

Which of the following are deposit-type institutions that serve as financial intermediaries?

savings and loans associations credit unions commercial banks

What is the purpose of liquidity?

to allow you to withdraw money on short notice

What is the main function of a finance company?

to make loans to consumers and small businesses

What are the services that finance companies typically do not offer?

to provide frequent access to cash machines to provide savings accounts with high interest rates To provide checking accounts with unlimited withdrawals

True or false: Financial services can change due to such factors as changing interest rates and rising consumer prices

true

True or false: One criterion for choosing a saving plan is the interest rate

true