Chapter 04 Savings and Payment Services

1. (p. 108) When Flo says she’s going to “the bank,” she may be implying that she is visiting a credit union or stopping at an ATM.

2. (p. 110) When Ted needs cash, his choices include liquidating savings and borrowing.

3. (p. 110) A savings account is also known as a demand deposit.

4. (p. 111) If a bank allows online transactions, it must also allow face-to-face transactions at the bank.

5. (p. 111) Making transactions using a credit card will immediately reduce your bank balance.

6. (p. 114) The only question you should ask yourself when selecting a financial service provider is “Where can I get the best return on my savings?”

7. (p. 114) A commercial bank is the same thing as a credit union.

8. (p. 116) A loan from a pawnshop will be more expensive than one from a bank.

9. (p. 116) The best option for borrowing money at a low rate is to use a payday loan organization.

10. (p. 116) If you get a big-screen television from a rent-to-own center, you will be certain to own it after a period of time.

11. (p. 118) A benefit of investing in a certificate of deposit is the penalty for early withdrawal.

12. (p. 118) A bump-up CD allows an investor to increase the amount invested.

13. (p. 119) A callable CD allows investors to ‘cash in’ their investment early.

14. (p. 119) If you think that rates will fall, you should buy a long-term CD to lock in your rate now.