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36 Cards in this Set

  • Front
  • Back
The convenience of using a financial institution with 24-hr banking frequently requires a trade-off with
personal service
A trust has the purpose of
managing the assets of a person
The storage of funds for future use is the purpose of ________ services
savings
When interest rates are rising, a person would be best served by
short term savings instruments
An all-purpose account that provides several services is a(n)
asset management account
Time deposits consist of
savings accounts
Direct deposit and automatic monthly payments are features of
electron banking
To avoid high fees for loans, a person should not borrow from a
pawnshop
In recent years, membership in credit unions has
continued to increase
An adv. Credit unions may have over other financial institutions is
low-cost personal loans
The major service offered by investment companies is
mutual funds
A financial institution organized for the main purpose of providing loans to purchase homes is a
mortgage and loan company
The business hours ans location of a financial institution refer to the _________ factor of selecting a financial institution
convenience
Which of the following savings plans is not covered by federal deposit insurance?
a money market fund
The rate of return on a savings account is also referred to as
yield
An advantage of Canada Savings bond is
a guaranteed rate of return
Joan expects interest rates to decline over the next few month. To max. her earnings she should us a(n)
5 yr GIC
Which of these is not a characteristic of the compound interest bond?
interest paid on Nov. 1 of each year
A saver will usually earn the highest rate with which of the following types of savings plans?
GIC
A $400 savings account that earns $15 interest in a year has a yield of ______ percent
3.75%
Comparison of earnings for diff. savings plans can best be accomplished using the
effective annual rate
Briana expects int rates to decline over the next few months. To max. her earnings she should use a(n):
5 year certificate deposit
A service designed for people who write only a few cheques each month is a(n)
activity
Kevin friedmand only needs to write a couple of cheques each month. Which type of chequing account would best serve his needs?
an activity account
The funds deposited in a chequing account can be restricted for use by
a holding period
A personal cheque with guaranteed payment is called a
certified cheque
The purpose of a “special” endorsement is to
transfer a cheque to another person
A_________ endorsement would be used if a person is presenting a cheque in order to obtain cash
blank
The first information to be recorded when writing a cheque is the
cheque stub or cheque register
When preparing a bank reconciliation, outstanding cheques should be
subtracted from the bank statement bal.
In the bank reconciliation process, service fees should be
subtracted from the chequebook balance
The “prime” rate is _______________
the lending rate banks charge their most creditworthy clients
Which best describes the prime rate of interest
the lending rate banks charge their most creditworthy clients
When interest rates are falling, a person would be best served by
short term loans
The yield on a savings account is also referred to as
rate of return
Robert expects interest rates to rise over the next few months. To maximize his earnings he should use a
six month certificate of deposit