personal finance chapter 5

checking accounts are frequently referred to as ____deposits

demand

a certificate of deposit usually has

limited liquidity

a trust has the purpose of:

managing the assets of a person

what type of account would you expect to provide the poorest yield?

passbook savings account

the truth-in-svings law requires that financial institutions:

report annual percentage yield on savings

the purpose of a special endorsement is to

transfer a check to another person

a savings account earns 4 percent. if the saver is in a 28 percent tax bracket, the after tax savings rate of return would be ___ percent

2.88

a $200 savings account that earns $13 interest in a year has a yield of ___percent

6.50

in recent years, membership in credit unions has:

continued to increase

a regular savings account usually offers a higher rate of return to savers than other savings plans

false

the more frequent the compounding, the less a person will earn on a savings account

false

a _____ endorsment is especially useful when you are depositing checks

restrictive

all in one accounts may be used by financial institutions to simplify the maze of financial services and to attract customers

true

credit unions frequently offer lower loan rates than other financial institutions

true

demand deposits are another term for checking accounts

true

higher returns on savings will usually result in less liquidity

true

savings and loan associations offer mortgages

true

the money market fund offered by investment companies is a relatively liquid financial service

true

the rate of return on a savings account is also referred to as:

yield