PF CH 5 Study Guide
1.Which of the following financial services is best suited for saving money over a period of years?__________________
2.Credit cards allow you to ______________________________________________________.
3.You give up liquidity when you ________________________________________________.
4.The Federal Deposit Insurance Corporation insures depositors against losing their money in the case of a _____________________.
5.Compared with commercial banks, credit unions generally offer _________________________.
6.To earn high interest rates on a certificate of deposit, you must accept all the following limitations EXCEPT __________________.
7.In which kind of savings plan does the interest rate vary from month to month?_____________________________
8.If you deposit $100 in an account with an annual interest rate of 6 percent compounded monthly, after 12 months you will have
______________________________.
9.When writing a check, include all of the following EXCEPT ___________________________________________.
10.The first step in balancing a checkbook is ___________________________________________.
11.___________________________________is the use of a debit card to purchase an item or service at a retail store
12. ___________________________ is the process in which interest is earned on both the principal and any previously earned interest
13._____________________________ is a nonprofit financial institution that is owned by its members and organized for their benefit
14. ___________________________________ is a card issued by a financial institution that allows you to withdraw money from your
account or pay for purchases by deducting funds directly from your account
15.___________________________________ is a savings account in which the interest rate varies as market rates change
16.______________________________ is the amount of interest that a financial institution would pay on a $100 deposit for one year
17. ___________________________________ is a savings alternative in which money is left on deposit for a stated amount of time to
earn a specific rate of return
18. ___________________________________ is the percentage of increase in the value of savings from earned interest
19.The signature of a payee on the back of a check is called ___________________________________.
20.___________________________________ is a for-profit institution that offers a full range of financial services