Question 15. Question : (TCO 2) One of the characteristics of a certificate of deposit is that it can have high interest-rate risk. low safety for savers. limited liquidity. a variable rate of return. no minimum deposit amount. Question 16. Question : (TCO 2) On a savings account, the rate of return can also be referred to as liquidity. compounding. yield. insolvency. asset management. Question 17. Question : (TCO 2) A savings account in which interest is compounded _____ would have the highest effective yield. daily annually semiannually monthly weekly Question 18. Question : (TCO 2) At times, funds deposited in an account may be restricted by_____. a holding period outstanding checks interest earned service charges electronic banking Question 19. Question : (TCO 2) Service fees would be _____ in the bank reconciliation process. added to the bank statement balance subtracted from the bank statement balance added to the checkbook balance subtracted from the checkbook balance Question 20. Question : (TCO 2) When an individual borrows money to purchase a new home, he or she will be charged a _____. prime rate discount rate mortgage rate
Treasury bond rate corporate bond BUSN 380 DeVry Week 3 Quiz Latest 1. Question : (TCO 3) Examples of _____ include automobile and installment loans for purchasing furniture or appliances. a line of credit a credit card loan open-end credit closed-end credit convenience credit Question 2. Question : (TCO 3) The maximum percentage of your net income that should be spent on credit purchases is recommended to be _____. 10% 20% 30% 40% 50% Question 3. Question : (TCO 3) One of the concerns and risks associated with cosigning is that you are not being asked to guarantee the debt. it is not your legal responsibility to pay the debt. you’ll have to pay up to the full amount of the debt if the borrower does not pay. the creditor must first try to collect from the borrower. the creditor cannot garnish your wages. Question 4. Question : (TCO 3) Dividing monthly debt payments (not including house payments) by net monthly income will allow you to calculate your _____. net-worth-to-debt ratio debt-payments-to-income ratio liability status credit capacity status income-to-liability ratio Question 5. Question : (TCO 3) In determining your credit capacity, you first provide for basic necessities, such as furniture. home furnishings. mortgage or rent.