Chapter 04 Savings and Payment Services

99. (p. 129) Zoe signed the back of her check with the words "for deposit only." She used a(n)
A. Blank endorsement
B. Restrictive endorsement
C. Deposit ticket
D. Special endorsement
E. Individual account

100. (p. 129) Margaret signed the back of her check with the words "pay to the order of Penelope." She used a(n)
A. Blank endorsement
B. Restrictive endorsement
C. Deposit ticket
D. Special endorsement
E. Individual account

101. (p. 129) Which of the following is NOT required when writing a check?
A. Amount of check written in words
B. Date written
C. Driver's license number
D. Person or organization receiving payment
E. Signature

102. (p. 129) If a check is lost or stolen, you should use a
A. Stop-payment order
B. Stale check
C. Bank statement
D. Blank endorsement
E. Deposit ticket

103. (p. 118) Nancy invested $10,000 in a certificate of deposit earning 6 % per year. Unfortunately, she needed to withdraw it before the maturity date. If the penalty involved two months of interest, what was her total penalty?
A. $0
B. $6
C. $50
D. $100
E. $600

104. (p. 118) Neil invested $10,000 in a certificate of deposit earning 12% per year. Unfortunately, he needed to withdraw it before the maturity date. If the penalty involved two months of interest, what was his total penalty?
A. $0
B. $12
C. $100
D. $200

105. (p. 122) What is the APY for a savings account with a $500 balance that receives $24 interest for the year?
A. 2.4%
B. 4.8%
C. 5%
D. 10.4%
E. 20.8%

106. (p. 122) What is the APY for a one-year $8,000 Certificate of Deposit with $1,120 interest?
A. 5.6%
B. 7%
C. 8%
D. 11.2%
E. 14%

107. (p. 123) Nicholas earned 10% in his savings account. If he is in the 25% tax bracket, what is his after-tax savings rate of return?
A. 2.5%
B. 5.8%
C. 7.5%
D. 10%
E. 13.3%

108. (p. 123) Opal earned 8% in her savings account. If she is in the 25% tax bracket, what is her after-tax savings rate of return?
A. 2%
B. 2.5%
C. 6%
D. 8%
E. None of the above

109. (p. 124) Evan had three accounts as listed below. In 2009, how much was his total coverage by the FDIC?
· Bank A: $100,000
· Bank B: $75,000
· Bank C: $300,000
A. $100,000
B. $250,000
C. $375,000
D. $425,000
E. $475,000

110. (p. 124) Gwen had three accounts as listed below. In 2009, how much was her total coverage by the FDIC?
· Bank A: $275,000
· Bank B: $25,000
· Bank C: $350,000
A. $100,000
B. $250,000
C. $525,000
D. $575,000
E. $650,000

Topic: Evaluating savings plans

111. (p. 124) Victor read the fine print for a checking account he was thinking about using. The fine print read "A minimum balance of $500 is required. If your balance falls below this level, you will be assessed a monthly fee of $8." Since Victor was planning to only keep a $100 balance in his account, how much could he be charged each year?
A. $0.00
B. $8.00
C. $19.20
D. $40.00
E. $96.00

112. (p. 131) Given the information below, what should Jason's adjusted bank balance for his bank reconciliation be?
· Bank balance: $250
· Outstanding checks: $79
· Deposit in transit: $25
· ATM Fees: $6
· Interest earned: $1
· Checkbook balance: $201
A. $147
B. $171
C. $196
D. $275
E. $197