FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: Financial Services: Savings Plans and Payment Accounts

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

Determine the rate of return (yield) on a savings account in which you deposited $300.00 and earned $6.00 in interest after one year.

A) 5.00%
B) 0.05%
C) 2.00%
D) 0.20%
E) 18.00%

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

The Expedited Funds Availability Act requires that funds be available to depositors:

A) within 5 days for local checks
B) within 2 days for local checks
C) within 2 days for both local checks and out-of-town checks
D) within 2 days for out-of-town checks
E) immediately upon deposit

Correct Answer

verified

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

The storage of funds for future use is a purpose of ____________ services.

Which CD starts with a higher rate,has a long time to maturity,and can be retired by the bank after a set time period?

When preparing a bank reconciliation,interest earned on your checking account is added to the bank statement balance.

David Wynn gets a personal loan from his credit union for $1,000.David will make monthly payments $85.15 over the next year to repay the loan.What type of financial service is David using?

Josh earned $120 on $1500 invested in a high yield money market account.He is taxed at 28% of his earnings.What is the effective yield on his investment?

Credit unions frequently offer lower loan rates than other financial institutions.

Based on the following information,what amount would be subtracted from the bank balance side of the checking account reconciliation? Service charge $12;Outstanding checks $145;Interest $3.50;Deposit in transit $80

Purchasing a new CD upon maturity of the current CD is commonly referred to as:

Brad Kellogg maintains a monthly balance in his checking account of approximately $150,writes about 25 checks a month,and makes three deposits each month.How would Brad decide which one of the following checking accounts he should use?

A ____________ endorsement would be used if a person is presenting a check in order to obtain cash.

A pawnshop with a monthly interest rate of 2.75 percent would have an annual interest rate of ____ percent.Ignore compounding.

Evan Nolan is a college graduate who has just landed a great job.He feels it is time for him to start saving a portion of his earnings.What factors would you recommend he consider when evaluating and comparing different savings plans?

An asset management account combines several financial services for a single fee.

A person borrows $200 from a payday loan company,and pays $10 interest for two weeks.This would result in an annual interest rate of approximately ___ percent.Ignore compounding.

To avoid high fees for loans,a person should avoid borrowing from a:

Which of the following is a way to reduce ATM surcharges?

The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution.Suzanne has $200,000 in an individual account and $424,000 in a joint account with her husband,Ted.How much of Suzanne's money is not covered by FDIC insurance?

Checking accounts are frequently referred to as ____________ deposits.