Question 1

Earning interest on interest is called

Accepted Answer

A)   Compounding.
B)   Liquidity.
C)   Minimum deposit.
D)   Rate of return.
E)   Safety.F) C) and D)
G) A) and C)

Question 2

Which of the following usually offers money market funds?

Accepted Answer

A)   A credit card company
B)   An investment company
C)   A life insurance company
D)   A finance company
E)   A payday loan companyF) B) and E)
G) A) and B)

Question 3

Each year,check writing is being used more often.

Accepted Answer

A) True 
 B)False

Question 4

Why should you avoid using payday loans?

Accepted Answer

Payday loans,also known as cas...

Question 5

A demand deposit is also known as

Accepted Answer

A)   A checking account.
B)   A trust.
C)   A loan.
D)   A savings account.
E)   All of these are demand deposits.F) B) and E)
G) All of the above

Question 6

The text discusses several types of bonds.Which bond,which is no longer sold,electronically deposits interest into your bank account every six months?

Accepted Answer

A)   Series E
B)   Series EE
C)   Series HH
D)   Series I
E)   Series QF) All of the above
G) B) and E)

Question 7

Kylie went to a post office to obtain a

Accepted Answer

A)   Certified check.
B)   Cashier's check.
C)   Money order.
D)   Personal check.
E)   Merchant's check.F) A) and E)
G) B) and D)

Question 8

A savings account is also known as a demand deposit.

Accepted Answer

A) True 
 B)False

Question 9

A bump-up CD allows an investor to increase the amount invested.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is NOT a financial publication that can provide information about financial services and economic conditions?

Accepted Answer

A)   The Wall Street Journal
B)   The Financial Times
C)   The Daily Market
D)   BusinessWeek
E)   ForbesF) A) and D)
G) A) and E)

Question 11

Given the information here,what should Jason's adjusted bank balance for his bank reconciliation be?

Accepted Answer

A)   $113
B)   $171
C)   $221
D)   $242
E)   $300F) A) and B)
G) None of the above

Question 12

Liquidity and rate of return refer to the same thing.

Accepted Answer

A) True 
 B)False

Question 13

A commercial bank is the same thing as a credit union.

Accepted Answer

A) True 
 B)False

Question 14

Justin needs to have access to his money in five months.The best option for his savings is a

Accepted Answer

A)   Series EE bond.
B)   Money market account.
C)   Five-year certificate of deposit.
D)   Series I bond.
E)   Six-month certificate of deposit.F) A) and D)
G) B) and E)

Question 15

If you want to buy U.S.savings bonds,you may purchase them

Accepted Answer

A)   Through a TreasuryDirect account.
B)   At a financial institution.
C)   Online.
D)   All of these.
E)   Online and through TreasuryDirect.F) A) and B)
G) A) and C)

Question 16

Given the information here,what should Luke's adjusted bank statement balance AND adjusted checkbook balance be?
 Show your work.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Adjusted bank statement balance = Bank ...

Question 17

Claudette's grandchildren are 7 and 9 years old.When Claudette passed away,her grandchildren inherited her money.However,the will stipulated that they should not get control of the money until age 25.Which of the following should be set up to provide for the management and control of the funds?

Accepted Answer

A)   A checking account
B)   A trust
C)   A loan
D)   A savings account
E)   A certificate of depositF) D) and E)
G) B) and D)

Question 18

When Jack picked up a personal computer from the _____,he really was leasing it.

Accepted Answer

A)   commercial bank
B)   check-cashing outlet
C)   pawnshop
D)   payday loan facility
E)   rent-to-own centerF) B) and D)
G) A) and C)

Question 19

All of the following are nondeposit institutions except

Accepted Answer

A)   A credit card company.
B)   A investment company.
C)   A life insurance company.
D)   A finance company.
E)   A payday loan company.F) All of the above
G) A) and C)

Question 20

A callable CD allows investors to "cash in" their investment early.

Accepted Answer

A) True 
 B)False

Exam 4: Financial Services: Savings Plans and Payment Account

Each year,check writing is being used more often.

Correct AnswerverifiedShow Answer

Why should you avoid using payday loans?

Correct AnswerverifiedPayday loans,also known as cas...View AnswerShow Answer

A demand deposit is also known as

Correct AnswerverifiedShow Answer

A callable CD allows investors to "cash in" their investment early.

Correct AnswerverifiedShow Answer

Which of the following is NOT a financial publication that can provide information about financial services and economic conditions?

Correct AnswerverifiedShow Answer

Claudette's grandchildren are 7 and 9 years old.When Claudette passed away,her grandchildren inherited her money.However,the will stipulated that they should not get control of the money until age 25.Which of the following should be set up to provide for the management and control of the funds?

Correct AnswerverifiedShow Answer

The text discusses several types of bonds.Which bond,which is no longer sold,electronically deposits interest into your bank account every six months?

Correct AnswerverifiedShow Answer

All of the following are nondeposit institutions except

Correct AnswerverifiedShow Answer

Kylie went to a post office to obtain a

Correct AnswerverifiedShow Answer

A commercial bank is the same thing as a credit union.

Correct AnswerverifiedShow Answer

Given the information here,what should Jason's adjusted bank balance for his bank reconciliation be?

Correct AnswerverifiedShow Answer

Justin needs to have access to his money in five months.The best option for his savings is a

Correct AnswerverifiedShow Answer

If you want to buy U.S.savings bonds,you may purchase them

Correct AnswerverifiedShow Answer

Given the information here,what should Luke's adjusted bank statement balance AND adjusted checkbook balance be? Show your work.

Correct Answerverified Adjusted bank statement balance = Bank ...View AnswerShow Answer

A bump-up CD allows an investor to increase the amount invested.

Correct AnswerverifiedShow Answer

Earning interest on interest is called

Correct AnswerverifiedShow Answer

A savings account is also known as a demand deposit.

Correct AnswerverifiedShow Answer

When Jack picked up a personal computer from the _____,he really was leasing it.

Correct AnswerverifiedShow Answer

Which of the following usually offers money market funds?

Correct AnswerverifiedShow Answer

Liquidity and rate of return refer to the same thing.

Correct AnswerverifiedShow Answer

Correct Answer
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Payday loans,also known as cas...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Adjusted bank statement balance = Bank ...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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