Savers should select an institution that calculates interest

	A.	monthly.
	B.	quarterly.
	C.	weekly.
	D.	daily.

Question 2

Bob and Tina Cisneros have $3,000 to put in an emergency fund. Which of the following would be the most appropriate choice for the emergency fund?

	A.	Two-year certificate of deposit
	B.	Money market deposit account
	C.	Series EE U.S. savings bonds
	D.	NOW account

Question 3

Which of the following is a reason why you should reconcile your bank accounts regularly?

	A.	All of these
	B.	You or your bank may have made a computational error.
	C.	Fees may have been assessed lowering your balance below what you think you have on deposit.
	D.	Checks you have written may not have cleared your account.

Question 4

Electronic funds transfers (EFTs)

	A.	are paperless.
	B.	can be used in place of checks.
	C.	can transfer funds electronically.
	D.	all of these.

Question 5

Which of the following is the best advice for people who want to start saving?

	A.	Marry in haste, respect at leisure.
	B.	Pay yourself first.
	C.	There's no fool like an old fool.
	D.	Fools and their money are soon parted.

6

The Federal Deposit Insurance Corporation (FDIC) insures accounts in

	A.	brokerage companies.
	B.	commercial banks.
	C.	credit unions.
	D.	commercial banks and credit unions.

Question 7

Certificates of deposit (CDs) tend to pay higher rates of interest than money market accounts because

	A.	there are higher annual fees charged for CDs than for money market accounts.
	B.	CDs are not government insured and therefore are riskier investments than money market accounts.
	C.	the required minimum investment for CDs is higher than for money market accounts.
	D.	the investor agrees to leave his or her money in the CD for a specified period of time while he or she has free access to the funds in a money market account.

Question 8

Common financial services offered by depository institutions include

	A.	checking, lending, and savings.
	B.	checking, real estate sales, and savings.
	C.	legal advice, savings, and life insurance.
	D.	credit cards, stock brokerage, and tax preparation.

Question 9

Which of the following are examples of monetary assets?

	A.	Money market accounts, cash on hand, and certificates of deposit
	B.	Cash on hand, corporate stock, and insurance
	C.	Savings accounts, interest-earning checking accounts, and corporate stock
	D.	Real estate, money market accounts, interest-earning checking accounts

Question 10

____ typically pay the highest rates of interest on savings.

	A.	Mutual savings banks
	B.	Commercial banks
	C.	Credit unions
	D.	Savings banks