Chapter 4

Question 1

A Certified Check

Answer 1

Is a personal check that the bank guarantees the funds are available

Question 2

2 Advantages for Online Bill Payment

Answer 2

1. ) Very Convenient

2. ) Improves Record Keeping

Question 3

What does compound interest mean?

Answer 3

Earn interest upon interest

Question 4

Stop-payment services are easier with which means of payment?

Answer 4

Traditional Check

Question 5

Debit and ATM card transactions are linked to one’s

Answer 5

checking accounts

Question 6

What do EFT’s allow an individual to do

Answer 6

1.) Direct deposits
2,) ATM Machine
3.) Make payments

Question 7

In order to use an ATM machine an individual must have a

Answer 7

Pin number

Question 8

Your savings will grow faster with

Answer 8

Monthly interest compounding

Question 9

The key to successful savings program is to

Answer 9

pay yourself first

Question 10

Credit unions typically pay

Answer 10

HIGHER rates of returns on savings than banks and savings and loan associations

Question 11

Credit Unions

Answer 11

DO provide their members with deposit insurance

Question 12

when purchasing something with a debit card

Answer 12

You cannot stop payment

Question 13

Features of a Money Market Deposit Accounts

Answer 13

1. ) Do receive interest
2. ) Checking
3. ) Insured
4. ) Convenient
5. ) Debit card and take loans

Question 14

A NOW account

Answer 14

is an interest bearing account

Question 15

Factors typically influencing the choice of where to maintain a checking account are

Answer 15

Service and cost

Question 16

Compared to other depository financial institutions, credit unions-

Answer 16

benefits, interests, lower interest rates, and loans

Question 17

Commercial banks are insured by

Answer 17

FDIC

Question 18

If a company offers direct deposit of an employee’s paycheck. This service is called

Answer 18

EFT

Question 19

Which of the following strategies to building your nest egg

Answer 19

Make savings a priority retirement plan, reinvest

Question 20

First and most important rule for establishing a savings plan

Answer 20

save on a regular basis

Question 21

You are going on a trip out of the country and want to have checks that are easily converted into local currency. You should purchase

Answer 21

Travelers Checks

Question 22

Interest Rates will be lower on

Answer 22

Checking accounts

Question 23

A check you wrote last week has not been processed by the bank. This check has been known as a

Answer 23

Outstanding check

Question 24

You have 450$ in your checking account when your ATM and pin number are stolen. You could loose up to ____ if you report the lost ATM Card within

1. ) 2 business days
2. ) 8 business days
3. ) 26 business days

Answer 24

1. ) 50$
2. ) 500$
3. ) Wiped out account

Question 25

Many people choose a bank on

Answer 25

Convenient Service Cost

Question 26

You are planning to deposit money in a bank knowing that you will receive more interest of compound

Answer 26

daily

Question 27

You bank does not levy a service charge on you checking account as long as you have a minimum amount in the account. Your bank

Answer 27

DOES NOT offer free checking

Question 28

You are buying a large amount of merchandise through the mail from a dealer several hundred miles from you with whom you have never dealt before. The dealer will probably require that you pay with a

Answer 28

Cashiers or certified check

Question 29

What are foreign ATM transaction fees

Answer 29

Fees charges when use ATM that is not your banks