How much interest is earned on a balance of $1,000
for a certificate of deposit that is compounded at an
8% interest rate for an account maintained for three
years?
$259.71
100
Mary's business has $5,000 to start a savings plan
at a local bank. She is comparing the interest rates
between a mutual fund and a regular savings
account. Which evaluation factor of saving is Mary
considering?
Potential return
100
Jack is reviewing his investment portfolio to make
sure it includes options that will allow him to access
money immediately. Which type of evaluation factor
of saving is he considering?
Liquidity
100
Sam prefers a savings plan that allows him to earn
interest on previously earned interest. Which type
interest does he prefer?
Compound
200
James received a $100 check. He wants to endorse
this check over to Steve. Which type of endorsement
should James use?
Full
200
The Federal Reserve System supplied the monetary
system with $300 billion. This is an example of which
service of the Federal Reserve System?
Participating in open market activities
200
How much interest is earned on a balance of $1,800
that is compounded semiannually at a 6% interest
rate for an account maintained for one year?
$109.62
200
The Federal Reserve System aids in transferring
funds between banks in North Carolina and New
Jersey. This is an example of which service of the
Federal Reserve System?
Clearinghouse
300
The city government needs 1.2 million dollars to
build a new medical facility. Which type of bond
investment opportunity would help the city
government obtain funding for the facility?
Municipal bond
300
Ted deposits money in a savings plan regularly. The
interest he earns on this plan is indicative of how the
money markets are doing. Which savings plan is he
using?
Money market account
300
Mary prefers a relatively safe investment that will
allow her to withdraw money after a few days without
losing any of her principal. Which is the BEST
investment choice for Mary?
Money market account
300
How are common and preferred stocks different?
Preferred stock stockholders have priority in
dividend payments.
300
Mary needs a savings plan that will allow her to
access her money as cash for potential emergency
needs. Which type of evaluation factor of saving is
she considering?
Liquidity
400
.How are common and preferred stocks similar?
Both have a risk of loss of a investment.
400
Which is the FIRST step in opening a checking
account?
Completing a signature card
400
RadioShack offers shares of stock to investors at a
consistent rate of 6% without any voting rights.
What type of stock is it offering?
Preferred stock
400
Phil is writing a company check and just completed
writing the amount of the check in words. What
should Phil do NEXT?
Write in the purpose of the check
500
Maria prefers an endorsement that will make sure
checks are used for deposits only to her business
account. Which type of endorsement is preferred?
Restrictive endorsement
500
Bob sells specialty guitars and hopes to exchange
the guitars for a much higher value than the
purchase price. Which type of investment could the
guitars become?
Collectibles
500
Some customers recently learned that they can
exchange quilts purchased from Tyson's Antique
Store over 25 years ago for higher prices than they
were originally purchased. Which type of
investment are the quilts?
Collectibles
500
The Federal Reserve System approved the merger
of Wachovia Bank and Wells Fargo Bank. This is an
example of which service of the Federal Reserve
System?