Professional Documents
Culture Documents
Multiple Choice Quiz Chapter 5
Multiple Choice Quiz Chapter 5
Multiple Choice Quiz Chapter 5
Top of Form
1 CORRECT
Car insurance C)
2 CORRECT
A certificate of deposit that starts with a higher initial interest rate and which has a longer time to maturity but which can be retired by the financial institution is:
A stock-indexed CD. B)
A callable CD. C)
A global CD. D)
3 CORRECT
What type of financial institution makes loans to consumers and small businesses. This type of financial institution has short and intermediate term loans with a higher interest rate than other types of financial institutions. It can be easier for people with no credit history or a bad credit history to get a loan from this type of institution.
B)
Finance Companies C)
Mortgage Companies D)
4 CORRECT
Not insured D)
All of the above are drawbacks of money market accounts. E) Feedback: You are correct.
5 CORRECT
Which of the following would be one of the things listed in the book that you would consider when choosing a savings plan?
All of the above are things you must consider when choosing a savings plan. E) Feedback: You are correct.
6 CORRECT
It is the fact that your purchasing power may change as price levels change and must be considered when comparing savings plans. C)
It is the fact that you can withdraw your money on short notice without loss of principal. D)
7 CORRECT
You have a balance in your savings account of $1000. You keep your money in that account for 182 days and earn $28 in interest. What is the annual percentage yield on this account?
2.80% A)
5.69% B)
1.39% C)
8.25% D)
8 CORRECT
A(n) __________ is an all-in-one account that includes savings, checking, borrowing, investing and other services for a single fee.
Certificate of Deposit D)
9 CORRECT
A(n) __________ is a financial institution that offers a full range of financial services to individuals, business and government agencies.
Commercial bank A)
Credit union C)
Investment company D)
10 CORRECT
Rate of return A)
Compounding B)
Inflation C)
Liquidity D)
Bottom of Form