Principles of Investment — Unit test Answers

Steven is looking at banks for checking and savings accounts. Some offer home loans and others do not. Steven may need a home loan sometime in the next few years. But he wonders if he should really ask what kinds of loans the bank makes, because he is getting a checking account, not a home loan. Which statement below gives the best reason for Steven to consider loan availability in choosing a checking account? a. The bank offers $100 to customers who get a pre-approval for a home loan. b. The bank provides ATMs in all the suburbs where Steve is interested in living. c. Banks that provide home loans can usually charge lower fees on checking accounts. d. If he needs a home loan in the future, he will have a relationship with the bank. Please select the best answer from the choices provided

Jessie wants to open a checking account to pay bills. She wants a starter book of checks, plus free online bill payment services. She analyzes the following statements of fees from Good Bank and Great Bank. Based upon past experience, Jessie expects to accidentally overdraft the account about 3 times per year, unfortunately all in the same month, due to unexpected charges and miscommunications. She expects no 2nd copies of statements, and to use network ATMs 4 times per month with either bank. Based on the tables of fees, which bank can be reasonably expected to cost Jessie the least amount in fees per year? a. Good Bank will have the least amount in fees per year. b. Great Bank will have the least amount in fees per year. c. Good Bank and Great Bank would have the same costs for Jessie. d. The fees can simply not be estimated in advance, so no decision should be made. Please select the best answer from the choices provided

When choosing a bank, why might ATM availability be valuable to someone who values convenience over cost? a. ATMs allow you to conduct bank transactions without going to the bank, so a bank without ATMs will require you to come in to the main office for everything. b. Checks are deposited in ATMs, so some retailers will not accept checks from a bank without ATM service. c. A greater availability of ATMs may make it easier to do bank transactions. Someone may choose this availability over a higher savings interest rate. d. ATM cards double as debit cards, so a bank without ATM service cannot issue debit cards. Please select the best answer from the choices provided

Which of these is not a factor you need to consider when choosing a bank? a. The number of ATM machines b. Branch locations c. How often you need access to your money d. The amount of money you paid in income taxes last year

Bankruptcy is considered a last resort because it stays on someone’s record for

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This year, the annual tuition at a public four-year university is $5,290. Next year when Jarrod attends his first year, the tuition is expected to increase 4.5%. Jarrod has 1 year to save the amount of money equal to the tuition for his first year. What is the approximate minimum amount Jarrod should save monthly?

Which of the following items may not be a good consideration in selecting a bank?a.The word “FREE” is prominently displayed in the marketing pamphlet.b.Knowledge of personal usage habits and needs.c.Number of ATMs near where you live, shop, work, or travel.d.The table of fees.

Aliyah made a payment in the amount of $47.93. She’ll use the check register to record her transaction. What will be her new balance? Do not use commas in your answer.$

In which column on a check register should the total current amount in the account be entered?

Tamara has a hard time remembering pin numbers for her credit cards, but she wants to keep the information secure.Which is the best solution for her dilemma?

Marcus deposited his paycheck in the amount of $625.84. He’ll use the check register to record his transaction. What will be his new balance? Do not use commas in your answer. $

Yasmine plans to attend a four-year public university. She expects she will need to contribute $9,000 annually to her education. Which savings plan will help Yasmine save enough money to pay for one year of school, regardless of whether or not interest is earned on her savings?

Fiona wrote a check to the veterinarian for $89.56. She’ll use the check register to record her transaction. What will be her new balance?