Southern Adventist University, Personal Finance, Quiz 5

What is the maximum you can lose if you notify your bank of a lost debit card within two days? (Section 5.4) a. $5,000 b. All of your money c. $500 d. $50

d. $50

Ways to protect your privacy and reducing the risk of fraud include: (Section 5.4) a. Watch for small charges, like a $1 charge, that you can't identify b. Always hit the "log off" button before closing your browser window c. Avoid banking via public computers or networks d. All of these e. Regularly change your passwords

d. All of these

The interest rate of most concern to a savings account depositor is the (Section 5.2) a. effective rate of interest (ERI). b. annual percentage rate (APR). c. nominal rate of interest (NRI). d. annual percentage yield (APY).

d. annual percentage yield (APY).

An interest-bearing savings instrument that requires people to deposit money for a fixed amount of time is called a(n) (Section 5.2) a. money market account. b. secured balance account. c. time-deposit. d. certificate of deposit.

d. certificate of deposit.

For couples, the specific money management tasks such as bill paying, overseeing spending, and handling banking can be divided in any way that works for the couple, but making ______ ______ should be a joint endeavor. (Section 5.5) a. savings deposits b. shopping trips c. account reconciliations d. financial decisions

d. financial decisions

In monetary assert management, safety means the speed and ease with which an asset can be converted to cash. (Section 5.1) True/False

False

Which of the following sets NOW accounts apart from other checking accounts? (Section 5.2) a. They pay interest b. They can be accessed by a debit card c. They are safer d. They are time deposits

a. They pay interest

If you wanted to set up a checking or savings account with another person that granted each of you the right to make withdrawals without consulting the other, you would choose a(n) (Section 5.3) a. joint tenancy account with right of survivorship. b. trustee account. c. individual access account. d. tenancy in common.

a. joint tenancy account with right of survivorship.

The primary reason for giving children an allowance is to (Section 5.5) a. have something to withhold when there is a need for discipline. b. pay them for doing chores around the home. c. teach them how to handle money. d. keep them from asking for money all the time.

c. teach them how to handle money.