BM - Chapter 17 Test

Accounts that permit depositors to make withdrawals at any time without penalty

• time deposits

• demand deposits

• fixed deposits

• short-term deposit

Are made for a specified period of time and cannot be withdrawn early without some financial penalty

• time deposits

• demand deposits

• fixed deposits

• short-term deposit

Loans made to a business

• commercial loans

• consumer loans

• secured loans

• unsecured loans

Loans made to individuals for personal use

• commercial loans

• consumer loans

• secured loans

• unsecured loans

A good rule when investing is to

• invest entirely in bonds since they are safe investments

• diversify by investing in stocks, bonds, and money market funds

• invest entirely in stocks if the market value is high

• invest entirely in money market funds

Typically the actual value of the collateral for a secured loan is

• equal to the loan amount

• slightly more than the loan amount

• substantially less than the loan amount

• unrelated to the loan amount

In banking, ATM stands for

• access to money

• advanced terminal and modem

• automatic teller machine

• anytime money

Which type of savings account requires a minimum deposit for a fixed period at a fixed interest rate?

• Money Market

• Certificate of Deposit (CD)

• Savings Account

• Mutual Fund

A federal agency that insures deposits in banks and savings institutions

• FDIC

• Fed

• FTC

• SBA

A loan backed by something of value owned by the borrower.

• unsecured loan

• commercial loan

• secured loan

• consumer loan