Personal Finance Ch 5 Banking Content Quiz

Which is NOT a commercial bank?

• Navy Federal Credit Union

• WellsFargo Bank

• AmerisBank

• PNC Bank

The date when the money of a CD (certificate of Deposit) becomes available is called:(p130-p132)

• the return date

• the maturity date

• the time date

• the growth date

You can borrow money for a _____ term by using a credit card or taking out a personal cash loan.p122-124

• long

• short

• medium

• tall

Banking in America began in ____.p120-122

• 1669

• 1779

• 1791

• 1812

Figure 5.3: Saving Alternatives: Which has a low minimum deposit, guaranteed by the government, free from state and local taxes?

• Regular Savings Account

• CD (Certificate of Deposit)

• Money Market

• U.S Savings Bonds

In Figure 5.3: Saving Alternatives: Which ONLY has a drawback of a low rate of return?

• Money Market Accounts

• CD (Certificate of Deposit)

• U.S Savings Bonds

• Regular savings accounts

According to the Truth in Savings Law, financial institutions have to inform you of which information? Select All That Apply.

• Fees on deposit accounts

• Interest Rate

• Annual Percentage Yield (APY)

• Terms and Conditions of the savings plan

When was spring break?

• April 1-5

• March 1-5

• Dec. 11-15th

• May 1-5

You gave your friend a short term 2 year loan of $43,000 at 3% compounded annually. What will be your total return?

Formula: A= P (1 +r) t

• $7,594.25

• 45,618.70

• $44,606.80

• $21,560

You invested $52,400 at 6% compounded annually for 5 years. What is your total return on this investment?

Formula A = P(1 + r) t

• $70,123.02

• $21,701.23

• $21,700.02

• $21,860.02