PF CH 5 Study Guide
1. Which of the following financial services is best suited for saving money over a period of years?______
2. Credit cards allow you to ______.
3. You give up liquidity when you ______.
4. The Federal Deposit Insurance Corporation insures depositors against losing their money in the case of a ______.
5. Compared with commercial banks, credit unions generally offer ______.
6. To earn high interest rates on a certificate of deposit, you must accept all the following limitations EXCEPT ______.
7. In which kind of savings plan does the interest rate vary from month to month?______
8. If you deposit $100 in an account with an annual interest rate of 6 percent compounded monthly, after 12 months you will have ______.
9. When writing a check, include all of the following EXCEPT ______.
10. The first step in balancing a checkbook is ______.
11. ______is the use of a debit card to purchase an item or service at a retail store
12. ______is the process in which interest is earned on both the principal and any previously earned interest
13. ______is a nonprofit financial institution that is owned by its members and organized for their benefit
14. ______is a card issued by a financial institution that allows you to withdraw money from your account or pay for purchases by deducting funds directly from your account
15. ______is a savings account in which the interest rate varies as market rates change
16. ______is the amount of interest that a financial institution would pay on a $100 deposit for one year
17. ______is a savings alternative in which money is left on deposit for a stated amount of time to earn a specific rate of return
18. ______is the percentage of increase in the value of savings from earned interest
19. The signature of a payee on the back of a check is called ______.
20. ______is a for-profit institution that offers a full range of financial services