ACCO 230 Chapter 4: CHAP4

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6 Mar 2016

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Payments choices: cash, checks, debit card and credit cards. Overspending as a result of impulse buying and using credit cards. Using savings or borrowing to pay for current expenses. Failing to put unneeded funds in an interest-earning savings account or investment plan. Savings: storage of funds for future use + time deposits (money in savings accounts and investment certificates) Payment services: transfer money + demand deposits into checking accounts. Other: insurance, investment, real estate purchases, tax assistance, financial planning, etc. Direct deposit of employment and other regular income. Atms to obtain cash, check account balance and transfer funds. Arrange to have atm service part of a fee package. Take advantage of cash-back facility when using debit cars to shop. Point of sale transaction: debit cards (pin required immediately), charge cards (accumulate amounts and bill periodically) and credit cards (pin required for cash advances only) Stored value cards: prepaid cards for specific services (phone cards, transit passes, etc.

Related Questions

Question 11

Ronald's gross income is $60,000, and his living expensesconsume 75 percent of his gross income. According to financialexperts, Ronald should set aside ____ to cover emergencies.

	A.	$5,000 to $10,000
	B.	$22,500 to $45,000
	C.	$11,250 to $22,500
	D.	$15,000 to $30,000

Question 12

Which of the following is not a benefit of a savingsaccount?

	A.	A way to achieve short-term savings goals
	B.	Builds funds for large, irregular expenses
	C.	Protection against inflation
	D.	A way to save for your child's education

Question 13

Stock brokerage firms typically offer

	A.	money market mutual fund accounts.
	B.	savings accounts.
	C.	certificates of deposit.
	D.	checking accounts.

Question 14

Absent-minded Alfred lost his ATM card on May 1. He reported itmissing the next day; however, $600 had been withdrawn from hischecking account. According to the Electronic Funds Transfer Act,how much of this $600 loss is Alfred responsible for?

	A.	$600
	B.	$50
	C.	$500
	D.	$0

Question 15

A check drawn on a financial institution, backed by thefinancial institution's finances, and made out to a specific payeeis called a

	A.	cashier's check.
	B.	money order.
	C.	certified check.
	D.	traveler's check.

Question 16

If Gus Solis believes interest rates are going to fall in thenear future and remain low for several years, Gus should now

	A.	invest in a long-term, fixed-rate certificate of deposit.
	B.	bury his money in fruit jars in the back yard.
	C.	invest in a variable-rate certificate of deposit.
	D.	invest in a short-term, fixed-rate certificate of deposit.

Question 17

Which of the following could be the most expensive way ofprotecting yourself from fees should you overdraft your checkingaccount?

	A.	An automatic funds transfer agreement
	B.	Paying the overdraft/bounced check fee
	C.	Opt-in overdraft/bounce protection
	D.	An automatic overdraft loan agreement

Question 18

Not-for-profit, common-bond financial institutions that areowned by their members are called

	A.	credit bureaus.
	B.	mutual savings banks.
	C.	savings banks.
	D.	credit unions.

Question 19

The Federal Deposit Insurance Corporation (FDIC) currentlyinsures against loss of up to ____ per person in an individualaccount at any one institution.

	A.	$50,000
	B.	$100,000
	C.	$250,000
	D.	$500,000

Question 20

Which of the following types of payment instruments could youget at your local post office?

	A.	Traveler's check
	B.	Cashier's check
	C.	Certified check
	D.	Money order

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ACCO 230 Chapter 4: CHAP4

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