Personal Finance Chapter 7

A stop-payment order is a request that a bank or other financial institution not cash a particular check True
A finance company specializes in mortgage loans False
A savings & loan association is a financial institution that is owned by its members False
According to the Truth in Savings Law, financial institutions have to guarantee you a minimum interest rate on your deposits False
A debit card takes money out of your savings account False
You can write checks from a money-market account False
A restrictive endorsement allows you to transfer a check to an organization or another person False
Overdraft protection is an automatic loan made to an account if the balance will not cover the checks written True
Money in a checking account is called a demand deposit True
Pawnshops will offer payday loans with high finance charges to desperate borrowers True
Problematic financial businesses include each of the following EXCEPT Savings and loan associations
Compared with commercial banks, credit unions generally offer Lower fees and loan rates
Credit cards allow you to Borrow money for a short term
The Federal Deposit Insurance Corporation insures depositors against losing their money in the case of a Bank failure
If you deposit $100 in an account with an annual interest rate of 6 percent compounded monthly, after 12 months you will have $106.18
The first step in balancing a checkbook is Comparing checks in the check record with those on the statement
Which of the following financial services is best suited for saving money over a period of years? Certificate of deposit
To earn high interest rates on a certificate of deposit, you must accept all the following limitations EXCEPT Completing a monthly bank reconciliation
In which kind of savings plan does the interest rate vary from month to month? Money market
When writing a check, include all of the following EXCEPT An endorsement on the back

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