Question 1

Given the information here,what should Jason's adjusted bank balance for his bank reconciliation be?

Accepted Answer

Adjusted bank balance = Bank balance - Outstanding checks + Deposit in transit = $300 - $129 + $50 = $221.

Question 2

Opal earned 6% in her savings account.If she is in the 25% tax bracket,what is her after-tax savings rate of return?

Accepted Answer

After-tax rate = Return × (1 - Tax rate) = 6% × (1 - .25) = .045 = 4.5%.

Question 3

Which is a better source of cash-a credit union or a check cashing outlet?
 Why?

Accepted Answer

The answer of Which is a better source of cash-a...

Question 4

Nancy invested $5,000 in a certificate of deposit earning 4% per year.Unfortunately,she needed to withdraw it before the maturity date.If the penalty was two months of interest,what was her total penalty (round to the nearest dollar)?

Accepted Answer

Penalty = Investment × Interest rate × 2 months/12 months = $5,000 * 4% * 2/12 = $33.33 = $33 (rounded).

Question 5

What are three features that you should consider when comparing financial institutions?

Accepted Answer

The answer of What are three features that you should...

Question 6

Victor read the fine print for a checking account he was thinking about using.The fine print said,"A minimum balance of $500 is required.If your balance falls below this level,you will be assessed a monthly fee of $10." Since Victor was planning to keep only a $50 balance in his account,how much could he be charged each year?

Accepted Answer

Monthly fee ($10) × 12 months = $120.

Question 7

Define two of the following:
a.Time deposit
b.Demand deposit
c.Trust
d.Cash management account

Accepted Answer

The answer of Define two of the following:
a.Time deposit
b.Demand deposit
c.Trust
d.Cash...

Question 8

What financial services are available from banking online?

Accepted Answer

The answer of What financial services are available from banking...

Question 9

Given the information here,what should Jason's adjusted checkbook balance be?

Accepted Answer

Adjusted checkbook balance = Checkbook balance - Fees, ATM withdrawals + Interest earned, direct deposits = $242 - $26 + $5 = $221.

Question 10

Gwen had three accounts as listed here.In 2011,how much was her total coverage by the FDIC?
• Bank A: $250,000
• Bank B: $50,000
• Bank C: $275,000

Accepted Answer

The FDIC insures up to $250,000 per depositor, per insured bank. Therefore, Gwen's total coverage is $250,000 from Bank A, $50,000 from Bank B, and $250,000 from Bank C, totaling $550,000.

Question 11

List three types of deposit institutions.

Accepted Answer

The answer of List three types of deposit institutions....

Question 12

List three types of nondeposit institutions.

Accepted Answer

The answer of List three types of nondeposit institutions....

Question 13

What makes a credit union unique?
 What is an advantage of a credit union?

Accepted Answer

The answer of What makes a credit union unique?
 What...

Question 14

Nicholas earned 10% in his savings account.If he is in the 28% tax bracket,what is his after-tax savings rate of return?

Accepted Answer

After-tax rate = Return × (1 - Tax rate) = 10% × (1 - .28) = .072 = 7.2%.

Question 15

Evan had three accounts as listed below.In 2011,how much was his total coverage by the FDIC?
• Bank A: $125,000
• Bank B: $50,000
• Bank C: $325,000

Accepted Answer

The answer of Evan had three accounts as listed below.In...

Question 16

Neil invested $10,000 in a certificate of deposit earning 9% per year.Unfortunately,he needed to withdraw it before the maturity date.If the penalty was two months of interest,what was his total penalty?

Accepted Answer

Penalty = Investment × Interest rate × 2 months/12 months = $10,000 × 9% × 2/12 = $150.

Question 17

What are three common payment choices for routine spending activities?

Accepted Answer

The answer of What are three common payment choices for...

Question 18

What is the APY for a one-year $4,000 certificate of deposit with $560 interest?

Accepted Answer

APY = 100 × (Interest/Principal) = 100 × (560/4,000) = 14%.

Question 19

Why should you avoid using payday loans?

Accepted Answer

The answer of Why should you avoid using payday loans?...

Question 20

What is the APY for a savings account with a $250 balance that receives $12 interest for the year?

Accepted Answer

APY = 100 × (Interest/Principal) = 100 × (12/250) = 4.8%.

Quiz 4: Financial Services: Savings Plans and Payment Account

Given the information here,what should Jason's adjusted bank balance for his bank reconciliation be?

Opal earned 6% in her savings account.If she is in the 25% tax bracket,what is her after-tax savings rate of return?

Which is a better source of cash-a credit union or a check cashing outlet? Why?

Nancy invested $5,000 in a certificate of deposit earning 4% per year.Unfortunately,she needed to withdraw it before the maturity date.If the penalty was two months of interest,what was her total penalty (round to the nearest dollar) ?