Unit 4-Other Financial Services: Question Preview (ID: 12534)


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To write 10% as a decimal you would write 1.0
a) True b) Not this one c) Not this one d) False
More money is earned on interest compounded annually than on interest compounded daily
a) True b) Not this one c) Not this one d) False
Interest paid on interest is called
a) annual interest b) compound interest c) simple interest d) counter interest
When interest is compounded semiannually, the annual interest rate must be divided by
a) 2 b) 8 c) 4 d) 1
Before investing money in a savings account you should ask which one of the following questions...
a) What is your interest rate b) All of the above c) Is there a minimum balance requirement d) How often the interest is compounded
Interest rates charts provided by banks are unreliable
a) True b) Not this one c) Not this one d) False
Which of the following is the most liquid?
a) Real Estate b) Certification of Deposit (CD) c) Cash d) Check
Which of the following is the least liquid?
a) Real Estate b) Certification of Deposit (CD) c) Cash d) Check
Customer can use ATMs to perform financial transactions without a teller
a) True b) Not this one c) Not this one d) False
They now make smart phone apps to do a lot of your banking.
a) True b) Not this one c) Not this one d) False
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