Question 1

Mandy has $2,000 she would like to start a savings program.She will add to it regularly by investing $50 per month in a liquid account.Which of the following types of accounts would be most appropriate in this situation?

Accepted Answer

A money market deposit account offers a higher interest rate than a traditional savings account while still providing easy access to funds. This makes it an appropriate choice for Mandy's situation since she plans to regularly add to her savings and wants it to be easily accessible. Certificates of deposit and US Treasury bills have penalties for early withdrawal, which would not be suitable for Mandy's needs. Series EE US savings bonds have a relatively low interest rate and do not provide easy access to funds. NOW accounts are checking accounts that offer interest, but typically have lower interest rates than money market deposit accounts.

Question 2

Alice lost her ATM card at the lake and reported it missing the next day.She found that $800 had been withdrawn from her savings account.The most Alice will be legally liable for is

Accepted Answer

According to the Electronic Funds Transfer Act, if a customer reports a missing ATM card within two business days of discovering the loss, they will only be liable for up to $50 of unauthorized withdrawals. Therefore, Alice will be legally liable for $50.

Question 3

Alice lost her ATM card at the lake and forgot it was missing until her monthly statement came 26 days later.She found that $800 had been withdrawn from her savings account.The most Alice will be legally liable for assuming she notifies the bank at this point is

Accepted Answer

The answer of Alice lost her ATM card at the...

Question 4

Which of the following is not true of low interest rates?

Accepted Answer

The answer of Which of the following is not true...

Question 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Today the differences between a commercial bank and an S&L are [minor | major].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

A check you wrote to buy shoes last week has not yet been processed by the bank.It is said to be

Accepted Answer

When a check has been written but has not yet been processed by the bank, it is said to be outstanding.

Question 7

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Interest rates will be lower on your [savings | checking] accounts.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

The least expensive method for banks to interact with their customers is

Accepted Answer

Online interaction is the least expensive method for banks to interact with their customers as it requires less human resources and overhead costs compared to in-person or phone interactions. Additionally, with the increasing popularity of mobile banking, customers can access their accounts and perform transactions anytime and anywhere, further reducing cost for the bank.

Question 9

When reporting errors or unauthorized transactions,it is best to notify your bank

Accepted Answer

It is best to notify the bank both by telephone and a follow-up letter to ensure that the issue is properly documented and resolved. Keeping a copy of the letter for your records is also important in case of any future disputes or misunderstandings.

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Liquid assets would include your savings account and your [money market deposit account | stock mutual fund].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

You have $450 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 8 business days.

Accepted Answer

The answer of You have $450 in your checking account...

Question 12

You have $900 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 60 business days.

Accepted Answer

The answer of You have $900 in your checking account...

Question 13

Low interest rates that have persisted since the financial crisis of 2008-09 have been a net benefit to

Accepted Answer

Low interest rates have been a net benefit to banks because it has allowed them to borrow money at a lower rate and earn a higher profit margin by lending it out at a higher rate. This has helped to stimulate the economy by increasing lending and investment activity.

Question 14

If you write a check for an amount greater than your account balance,the result will be

Accepted Answer

If you write a check for an amount greater than your account balance, the result will be an overdraft. This means that you have spent more money than was available in your account and will likely incur fees from your bank.

Question 15

Within how many business days must a bank make proceeds of deposited checks available?

Accepted Answer

The answer of Within how many business days must a...

Question 16

When doing a DDA reconciliation,interest earned on your account should be

Accepted Answer

Interest earned on your account should be added to your checkbook ledger because it is additional income that you have received. If you do not add it to your checkbook ledger, your balance will be incorrect and you may be at risk of overdrafting.

Question 17

A check you issued last week has been stolen.You can prevent it from being withdrawn from your account by an unauthorized person by

Accepted Answer

Requesting a stop payment is the best option in this scenario as it will prevent the stolen check from being cashed or deposited by an unauthorized person. Writing a new check or depositing the correct amount of money cannot prevent the stolen check from being used, while tearing up the check would not prevent it from being cashed or deposited. Properly endorsing the check is important for its legal validity but does not prevent it from being used by someone else.

Question 18

Low interest rates are helpful in

Accepted Answer

The answer of Low interest rates are helpful in
...

Question 19

You have $450 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 2 business days.

Accepted Answer

The answer of You have $450 in your checking account...

Question 20

You are going on an overseas trip and you want to have checks that are easily converted into local currency.You should purchase

Accepted Answer

Traveler's checks are specifically designed for use while traveling overseas as they can be easily converted into local currency at banks or exchange offices. Both cashier's checks and certified checks are guaranteed funds, but are not as easily converted while traveling. Conditional checks are not a type of check and guaranteed checks do not typically refer to a specific type of check.

Quiz 4: Managing Your Cash and Savings

Mandy has $2,000 she would like to start a savings program.She will add to it regularly by investing $50 per month in a liquid account.Which of the following types of accounts would be most appropriate in this situation?

Alice lost her ATM card at the lake and reported it missing the next day.She found that $800 had been withdrawn from her savings account.The most Alice will be legally liable for is

Alice lost her ATM card at the lake and forgot it was missing until her monthly statement came 26 days later.She found that $800 had been withdrawn from her savings account.The most Alice will be legally liable for assuming she notifies the bank at this point is

Which of the following is not true of low interest rates?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Today the differences between a commercial bank and an S&L are [minor | major].

A check you wrote to buy shoes last week has not yet been processed by the bank.It is said to be

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Interest rates will be lower on your [savings | checking] accounts.

The least expensive method for banks to interact with their customers is

When reporting errors or unauthorized transactions,it is best to notify your bank

You have $450 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 8 business days.

You have $900 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 60 business days.

Low interest rates that have persisted since the financial crisis of 2008-09 have been a net benefit to

If you write a check for an amount greater than your account balance,the result will be

Within how many business days must a bank make proceeds of deposited checks available?

When doing a DDA reconciliation,interest earned on your account should be

A check you issued last week has been stolen.You can prevent it from being withdrawn from your account by an unauthorized person by

Low interest rates are helpful in

You have $450 in your checking account when your ATM card and PIN are stolen.You could lose up to ____ if you report the lost ATM card within 2 business days.

You are going on an overseas trip and you want to have checks that are easily converted into local currency.You should purchase