Chapter 7, Personal Finance
If you deposit $100 in an account with an annual interest rate of 6% compounded monthly, then after 12 months you will have
$106.18
When writing a check, include all of the following EXCEPT
An endorsement
The federal deposit Insurance corporation insures depositors against losing their money in the case of a
Bank failure
Credit cards allow you to
Borrow money for a short term
Which of the following financial services is best suited for saving money over a period of years
Certificate of deposit
The first step in balancing a checkbook is
Comparing checks in the check record with those on the statement
To earn high interest rates in certificate of deposit, you must accept all the following limitations EXCEPT
Completing a monthly bank reconciliation
A Jason Alden prepaid phone card is an example of a debit card
False
A finance company specializes in savings accounts and mortgage loans
False
A restrictive endorsement allows you to transfer a check to an organization or another person
False
A savings & loan association is a financial institution that is owned by its members
False
According to the truth in savings law, financial institutions have to guarantee you a minimum interest rate on your deposits
False
Pawnshops will offer payday loans with high finance charges to desperate borrowers
False
Compared with commercial banks, credit unions generally offer
Lower fees and loan rates
In which kind of savings plan does the interest rate vary from month to month
Money market
Problematic financial buisness include each of the following EXCEPT
Savings and loan associations
A dink is the same as dent, according to a wise man
True
A stop payment order is a request that a bank or other financial institution not cash a particular check
True
Money in a checking account is called a demand deposit
True
Overdraft protection is an automatic loan made to an account if the balance will not cover the checks written
True