PF Ch. 4 T/F’s Semester 1 – Flashcards
Unlock all answers in this set
Unlock answersquestion
A savings account is also known as a demand deposit
answer
False
question
Making transactions using a credit card will immediately reduce your bank balance
answer
False
question
The only question you should ask yourself when selecting a financial service provider is "Where can I get the best return on my savings?"
answer
False
question
A loan from a pawnshop will be more expensive than one from a bank
answer
True
question
The best option for borrowing money at a low rate is to use a payday loan organization
answer
False
question
If you get a big-screen television from a rent-to-own center, you will be certain to own it after a period of time
answer
False
question
A bump-up CD allows an investor to increase the amount invested
answer
False
question
A callable CD allows investors to 'cash in' their investment early
answer
False
question
If you think that rates will fall, you should buy a long-term CD to lock in your rate now
answer
True
question
All money market funds are not covered by federal deposit insurance
answer
True
question
I bonds earn interest based on a fixed rate plus inflation
answer
True
question
HH bonds are also known as Patriot Bonds
answer
False
question
The Truth in Savings Act requires financial institutions to disclose the interest rate on loans
answer
False
question
As inflation rates increase, the interest rates offered to savers usually increases
answer
True
question
Liquidity and rate of return refer to the same thing
answer
False
question
In October 2008, the FDIC announced the temporary Transaction Account Guarantee Program and increased coverage for accounts at insured institutions to $200,000 per depositor
answer
False
question
A college ID that includes prepaid amounts for meals is called a debit card
answer
False
question
Reconciling a checking account is not really necessary since the bank statement includes all activity from the bank's perspective
answer
False
