University:
Western Governors University
Course:
C211 | Global Economics
Academic year:

2023
Views:

358

Pages:

3
Author:

NRussell

Additional Practice Questions 1. Credit unions typically offer lower loan rates than other financial institutions. 2. 401-K accounts are tax free. 3. To avoid high fees for loans, a person should not borrow from a: A. credit union. B. savings and loan association. C. pawnshop. D. commercial bank. E. mutual savings bank. 4. A saver will usually earn the highest rate with which of the following types of savings plans? A. a five year certificate of deposit B. debit account C. passbook account D. share account E. NOW account 5. Savings compounded ____________ would have the highest effective yield. A. daily B. annually C. semi-annually D. monthly E. weekly 6. Comparison of earnings for different savings plans can best be accomplished using the: A. discounted present value. B. compounded rate of return. C. net present value. D. annual percentage yield. E. after-tax rate of return. 7. Based on the following information, what amount would be SUBTRACTED from the BANK BALANCE side of a checking account reconciliation? Service charge $12; Outstanding checks $145; Interest $3.50; Deposit in transit $80 A. $145 B. $12 C. $157 D. $148.50 E. $80 Additional Practice Questions 8. A savings account earns 4 percent. If the saver is in a 28 percent tax bracket, the after-tax savings rate of return would be ____ percent. A. 28 B. 16.72 C. 4 D. 2.88 E. 1.12 9. Your bank statement shows a balance of $670. Your checkbook register shows a balance of $462. You earned interest of $2, and had a service charge of $4 which had previously been posted to the check register. What is the amount of outstanding checks assuming there are no deposits in transit? A. $210 B. $208 C. $180 D. $12 E. $6 10. What is the effective rate of 5% interest compounding quarterly? A. 5% B. 5.12% C. 5.09% D. 5.06% See next page for solutions Additional Practice Questions 1. 2. 3. 4. 5. 6. 7. 8. 9. True False C A A D A D B 10. C