finance chap 4
Which of the following is not a common fee associated with prepaid debit cards?
Inflation fee
Check-cashing outlets do not offer which of the following services?
Payday loans
True or false: One criterion for choosing a saving plan is the rate of return.
True
An automatic teller machine (ATM) is also called as a(n) " machine."
bank
Compounding is the process that calculates earnings based on previously earned:
interest
If there is a shortage of cash, you will have two basic choices to cope with the situation from a savings or
spend. borrow
Some of the basic concerns of a financial services customer when comparing financial services include which of the following?
How can I minimize costs for checking and savings? Where can I get the best return on savings? Will I be able to borrow money when I need it?
Which type of financial institution typically charges higher rates?
Check-cashing outlets
A certified check is a personal check with:
a guaranteed payment.
A deposit ticket is used to add funds to:
an account
The two parts of interest on an I bond are a(n):
inflation rate that changes semiannually. fixed rate of interest for the life of the bond.
Common choices for making payments include all of the following except:
installment loans
Selection of a savings plan is influenced by:
rate of return. safety. liquidity. restrictions and fees.
Overdraft protection is an automatic loan made to checking account customers to cover checks written in excess of:
their balance
is a process that calculates interest based on previously earned interest.
Compound
A major concern with prepaid debit cards is which of the following?
The high fees often charged
A regular savings account usually offers:
a low or no minimum balance requirement
Overdraft protection is designed to:
cover underfunded checks
A draft account is an interest-bearing checking account at a credit union.
Share
Time deposits do not include:
credit card and cash loans. checking accounts.
Using savings for paying expenses is one of the mistakes people make when managing current cash needs.
current
Common payment choices include:
debit cards credit cards cash checks
A ticket or slip is used to add funds to a checking account.
deposit
Common mistakes made when managing current cash needs include:
lacking sufficient liquid assets to pay current bills. using savings for current expenses. leaving funds in low-interest accounts too long. overspending.
A regular savings account usually does not have:
overdraft protection. a high balance requirement. a high rate of interest.
A savings account provides a safe storage for funds to be used in the future.
true
Financial services can change due to such factors as changing interest rates and rising consumer prices.
true
banks are organized as corporations, with investors contributing the capital for operations
Commercial
True or false: Debit cards allow you to wait to deduct the amounts from your account.
false
Another name for an automated teller machine (ATM) is:
a cash machine
The rate of is the percentage increase in the value of savings as a result of interest earned.
return
Which of the following is not an example of a type of financial service that is focused on payment services? In other words, which of the following does not involve payment of money on your part?
Regular savings account
A certificate of is a savings plan requiring that a certain amount be left on deposit for a stated time period.
deposit
Benefits of U.S. savings bonds include:
exemption from state and local taxes. low minimum deposit. government guarantee.
Money market accounts at commercial banks are insured by ______, whereas money market funds are not.
federal deposit insurance
Which of the following deposit-type institutions serve as financial intermediaries?
Credit unions Savings and loans Commercial banks
A customer has more security in case of fraudulent transactions when a debit card is processed like a(n) _____.
credit card
All of the following are deposit institutions that serve as financial intermediaries except:
insurance companies.
The rate of return is:
the percentage increase in the value of an account
Money market accounts are insured by federal deposit insurance, whereas money market mutual are not.
fund
Financial services will usually not be affected by:
stock prices.
A current shortage of cash can be overcome by liquidating savings or borrowing.
true
What is not typically a basic concern of a financial services customer?
Does the bank offer tax preparation services?
A drawback of U.S. savings bonds is:
lower rates for early redemption.
Check-cashing outlets usually charge fees of:
1% - 20% of the face value of the check
Share draft accounts at a credit union:
are interest bearing until a minimum balance is maintained.
A savings plan that requires a certain amount of money to be left for a specified amount of time is a:
certificate of deposit
A check is a personal check with guaranteed payment.
certified
A Savings Bond that has an interest rate based on two components is a(n):
I bond