ABA CTFA Practice Test - Questions Answers, Page 14

It is a check payable to a third party that is drawn by a bank on itself in exchange for the amount specified plus, in most cases, a service fee (of about $5).

Short-term interest rates generally fluctuate ______ long-term rates, so it pays to monitor interest rate movements, shop around for the best rates, and place your funds in savings vehicles consistent with your needs.

Many financial planning experts recommend keeping a minimum of ____ to _____ of your investment portfolio in savings-type instruments in addition t the 3 to 6 months of liquid reserves noted earlier. Someone with $50,000 in investment should probably have a minimum of $5000 to $12500.

This is a saving bond issued by various denominations by the U.S Treasury. These are backed by the U.S government and can be replaced without charge in case of loss theft or destruction.

A systematic approach to selecting and financing a vehicle can mean significant savings. Before making any major purchase-whether it's a car, house, or large appliance-consider some basic guidelines to wise purchasing decisions.

The loss in the value of an asset, such as an automobile, that occurs over its period of ownership; calculated as the difference between the price initially paid and the subsequent sale price.

_____________ offers the latest-model used cars, provide financing, and will negotiation on price. Be sure to research values for shipping.

__________ have great impact on bond prices.

Bond interest rate is called: