personal money midterm chapter 4

Which of the following are protected by the Federal Deposit Insurance Corporation (FDIC)?

Money market deposit accounts

Funds invested in a _____ should not be withdrawn for a stated period in order to avoid an interest penalty.

certificate of deposit

Whenever you write a check or make a deposit, an entry should be made in your:

checkbook ledger.

A ____________ account is called a demand deposit account.

checking

Factors that typically influence the choice of where to maintain a checking account are:

convenience, services, and cost.

The Federal Deposit Insurance Corporation (FDIC) insures each ____________ up to a stated maximum dollar amount at any given financial institution.

depositor

Christina's bank allows her employer to directly deposit her paycheck into her personal bank account. This service provided by Christina's bank is called a(n):

electronic funds transfer system (EFTS) service

Higher interest rates on certificates of deposit are associated with:

longer maturities.

Credit unions are:

member-owned financial cooperatives.

Liquid assets would include your savings account and your ____________.

money market deposit account

The more frequently a bank compounds interest, _____ for a given nominal rate will be.

the higher the effective rate

You are going on an overseas trip, and you want to carry checks. You should purchase:

traveler's checks.

Funds in commercial banks are protected by the

Federal Deposit Insurance Corporation (FDIC).

Which of the following is a rented drawer in a bank's vault?

Safe-deposit box

People who do not have checking accounts often use ____________.

a cashier's check

You are buying a large amount of merchandise through the mail from a dealer several hundred miles from you with whom you have never dealt before. The dealer will probably require that you pay him with ____________.

a certified check

When doing an account reconciliation, interest earned on your account should be:

added to your checkbook ledger

Money market mutual funds:

allow check writing above a stipulated minimum amount.

Money market deposit accounts:

are federally insured.

The financial crisis of 2008-2009 followed by low interest rates have been beneficial to ____________.

borrowers