Personal Fin Ch.5

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

I EE

______ bonds are not a type of federal savings bond.

Municipal

True or false: Achieving your financial goals and carrying out your daily activities require various financial services.

True

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

True

Select all that apply Benefits of money market accounts include:

a favorable interest rate. deposit insurance.

A regular savings account usually offers:

a low or no minimum balance requirement.

Share draft accounts at a credit union:

are interest bearing.

Select all that apply Some things to consider when selecting your financial institution include:

convenience. online banking. services offered. fees and charges.

Overdraft protection is designed to:

cover underfunded checks.

Select all that apply What types of financial institutions have federal deposit insurance through FDIC?

credit unions commercial banks savings and loans

Use a credit card to:

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

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

deposit

Select all that apply Drawbacks of money market accounts include:

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

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

installment loans.

Select all that apply Non-deposit institutions include:

investment companies brokerage firms life insurance companies

Select all that apply By comparing financial institutions, a customer can:

lower bank fees. minimize ATM fees.

A(n) ______ cost is what you give up when you evaluate, select, and use financial services. This is a one word answer.

opportunity or implicit

Select all that apply Financial services include:

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

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

share

The rate of return is:

the percentage increase in the value of an account.

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

their balance.

Select all that apply Common mistakes made when managing current cash needs include:

using savings for current expenses overspending lacking sufficient funds

An opportunity cost is:

what you give up

Which type of institution does not offer financial services?

Catering company

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

Return

Online payments do not include ______.

Smart cards

A deposit ticket is used to add funds to ______.

an account

A money order:

guarantees payment.

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

insurance companies.

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

investment companies

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

money market

A money market fund is a ______.

savings instrument

Financial services will usually not be affected by:

stock prices.

Fraud charges should be reported within how many days of receiving your statement?

60

Using savings for living expenses is one of the mistakes people make when managing current cash needs. This is a one-word answer.

Current

You are in the 25% tax bracket, the after tax savings rate of return is 6%, the before-tax yield on the savings account is

8%

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

True

A regular savings account usually does not have:

a high rate of interest. a high balance requirement. overdraft protection.

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 ______.

certificate of deposit

The savings alternative that offers less liquidity is:

certificates of deposit.

Financial services include all of the following except:

debt counseling.

Achieving your financial goals and carrying out your daily activities require many ______ services

financial, finance, or monetary

The savings alternative that offers more liquidity is:

money market accounts.

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 ______.

6%

Which of the following attributes is not important when selecting a financial institution?

There is a state or national charter for the institution.

Select all that apply 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

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

savings and loans credit unions commercial banks