Personal Finance 7Th Canadian edition By Kapoor – Test Bank

Personal Finance 7Th Canadian edition By Kapoor – Test Bank

Chapter 04

Banking Services of Financial Institutions

True / False Questions

1. Time deposits are more commonly referred to deposits made to savings accounts and investment certificates.
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 04-01 Analyze factors that affect selection and use of financial services.
Topic: 04-01 A Strategy for Managing Cash

2. ATM fees are about the same in different geographic areas.
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 04-01 Analyze factors that affect selection and use of financial services.
Topic: 04-01 A Strategy for Managing Cash

3. Lower returns on savings will usually result in less liquidity.
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 04-01 Analyze factors that affect selection and use of financial services.
Topic: 04-01 A Strategy for Managing Cash

4. A “free” chequing account with a minimum balance of $500 has an opportunity cost of lost interest.
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 04-01 Analyze factors that affect selection and use of financial services.
Topic: 04-01 A Strategy for Managing Cash

5. Store credit cards usually charge a higher interest rate than a bank credit card.
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 04-02 Compare the types of financial institutions.
Topic: 04-08 Types of Financial Institutions

6. Credit unions frequently offer lower loan rates than other financial institutions.
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 04-03 Compare the costs and benefits of various savings plans.
Topic: 04-13 Types of Savings Plans

7. The money market fund offered by investment companies is a highly liquid financial service.
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 04-02 Compare the types of financial institutions.
Topic: 04-08 Types of Financial Institutions