Question 1

Determine the rate of return on a savings account in which you deposited $200.00 and earned $5.00 in interest after one year.

Accepted Answer

A) 5.00% 
B) 0.05% 
C) 2.50% 
D) 0.20% 
E) 18.00% 
A) 5.00% 
B) 0.05% 
C) 2.50% 
D) 0.20% 
E) 18.00%

Question 2

When interest rates are rising,a person should select:

Accepted Answer

A) short-term savings instruments. 
B) long-term savings instruments. 
C) short-term loans. 
D) variable-rate loans. 
E) five-year certificates of deposit. 
A) short-term savings instruments. 
B) long-term savings instruments. 
C) short-term loans. 
D) variable-rate loans. 
E) five-year certificates of deposit.

Question 3

Checking accounts are frequently referred to as ________ deposits.

Accepted Answer

A) common 
B) time 
C) current 
D) loan 
E) demand 
A) common 
B) time 
C) current 
D) loan 
E) demand

Question 4

Which of the following has the main purpose of issuing a policy that provides financial security for dependents?

Accepted Answer

A) Life insurance company 
B) Commercial bank 
C) Savings and loan association 
D) Credit union 
E) Mutual savings bank 
A) Life insurance company 
B) Commercial bank 
C) Savings and loan association 
D) Credit union 
E) Mutual savings bank

Question 5

Your bank statement shows a balance of $695.Your checkbook register shows a balance of $562.You earned interest of $3 and had a service charge of $5.There are no outstanding deposits.What is the amount of outstanding checks?

Accepted Answer

A) $135 
B) $160 
C) $133 
D) $6 
E) $0 
A) $135 
B) $160 
C) $133 
D) $6 
E) $0

Question 6

Which one of the following is not true for PayNearMe transactions?

Accepted Answer

A) It is used by people without a credit or debit card. 
B) It is used for online transactions. 
C) It allows buyers to make a purchase and then pay cash at a local store. 
D) The customer does not receive a receipt. 
E) The seller is notified of the payment. 
A) It is used by people without a credit or debit card. 
B) It is used for online transactions. 
C) It allows buyers to make a purchase and then pay cash at a local store. 
D) The customer does not receive a receipt. 
E) The seller is notified of the payment.

Question 7

A debit card transaction is processed by a retailer,with the amount of purchases deducted from your checking account by:

Accepted Answer

A) transferring money electronically. 
B) obtaining a discount on consumer purchases. 
C) making credit card purchases. 
D) quickly obtaining a cash loan. 
E) making investments with an investment company. 
A) transferring money electronically. 
B) obtaining a discount on consumer purchases. 
C) making credit card purchases. 
D) quickly obtaining a cash loan. 
E) making investments with an investment company.

Question 8

Automatically buying a new CD upon maturity of the current CD is commonly referred to as:

Accepted Answer

A) creating a CD portfolio. 
B) rolling over. 
C) refinancing. 
D) calling a CD. 
E) bumping up. 
A) creating a CD portfolio. 
B) rolling over. 
C) refinancing. 
D) calling a CD. 
E) bumping up.

Question 9

Which CD starts with a higher rate,has a long time to maturity,and can be closed by the bank after a set time period?

Accepted Answer

A) Bump-up 
B) Indexed 
C) Callable 
D) Global 
E) Promotional 
A) Bump-up 
B) Indexed 
C) Callable 
D) Global 
E) Promotional

Question 10

To avoid high fees for cash loans,a person should avoid borrowing from a:

Accepted Answer

A) credit union. 
B) savings and loan association. 
C) pawnshop. 
D) commercial bank. 
E) mutual savings bank. 
A) credit union. 
B) savings and loan association. 
C) pawnshop. 
D) commercial bank. 
E) mutual savings bank.

Question 11

A ________ endorsement would be used if a person is presenting a check in person to obtain cash.

Accepted Answer

A) restrictive 
B) common 
C) special 
D) blank 
E) documented 
A) restrictive 
B) common 
C) special 
D) blank 
E) documented

Question 12

A savings account earns 3 percent.If the saver is in a 22 percent tax bracket,the after-tax savings rate of return would be ________ percent.

Accepted Answer

A) 22.00 
B) 19.00 
C) 3.00 
D) 2.34 
E) 0.66 
A) 22.00 
B) 19.00 
C) 3.00 
D) 2.34 
E) 0.66

Question 13

You are planning to purchase a house in five years and intend to save a fixed amount of money each month for a down payment.What are three important considerations in selecting a savings plan?

Accepted Answer

Answers will vary.When evaluating a savi

Question 14

Series EE bonds continue to earn interest for how many years?

Accepted Answer

A) 10 
B) 20 
C) 25 
D) 30 
E) 35 
A) 10 
B) 20 
C) 25 
D) 30 
E) 35

Question 15

Which CD attempts to attract savers with gifts or special rates?

Accepted Answer

A) Bump-up 
B) Indexed 
C) Callable 
D) Global 
E) Promotional 
A) Bump-up 
B) Indexed 
C) Callable 
D) Global 
E) Promotional

Question 16

What type of account would you expect to provide the poorest yield?

Accepted Answer

A) Certificate of deposit earning 4% compounded semiannually 
B) Savings account earning 4% compounded annually 
C) Money market account earning 4% compounded monthly 
D) Money market fund earning 4% compounded monthly 
E) Savings account earning 4% compounded semiannually 
A) Certificate of deposit earning 4% compounded semiannually 
B) Savings account earning 4% compounded annually 
C) Money market account earning 4% compounded monthly 
D) Money market fund earning 4% compounded monthly 
E) Savings account earning 4% compounded semiannually

Question 17

The business hours and ATM locations of a financial institution refer to the ________ feature when selecting a financial institution.

Accepted Answer

A) safety 
B) cost 
C) compounding 
D) liquidity 
E) convenience 
A) safety 
B) cost 
C) compounding 
D) liquidity 
E) convenience

Question 18

Demand deposits are another term for checking accounts.

Accepted Answer

A) True 
 B)False

Question 19

A $200 savings account that earns $8.50 interest in a year has a yield of ________ percent.

Accepted Answer

A) 2.35 
B) 13.00 
C) 8.50 
D) 11.25 
E) 4.25 
A) 2.35 
B) 13.00 
C) 8.50 
D) 11.25 
E) 4.25

Question 20

What type of account would be considered the most liquid?

Accepted Answer

A) 3-year certificate of deposit 
B) Regular savings account 
C) Money market account 
D) U)S.savings bond 
E) Share of stock 
A) 3-year certificate of deposit 
B) Regular savings account 
C) Money market account 
D) U)S.savings bond 
E) Share of stock

Determine the rate of return on a savings account in which you deposited $200.00 and earned $5.00 in interest after one year.

When interest rates are rising,a person should select:

Checking accounts are frequently referred to as ________ deposits.

Which of the following has the main purpose of issuing a policy that provides financial security for dependents?

Your bank statement shows a balance of $695.Your checkbook register shows a balance of $562.You earned interest of $3 and had a service charge of $5.There are no outstanding deposits.What is the amount of outstanding checks?

Which one of the following is not true for PayNearMe transactions?

A debit card transaction is processed by a retailer,with the amount of purchases deducted from your checking account by:

Automatically buying a new CD upon maturity of the current CD is commonly referred to as:

Which CD starts with a higher rate,has a long time to maturity,and can be closed by the bank after a set time period?

To avoid high fees for cash loans,a person should avoid borrowing from a:

A ________ endorsement would be used if a person is presenting a check in person to obtain cash.

A savings account earns 3 percent.If the saver is in a 22 percent tax bracket,the after-tax savings rate of return would be ________ percent.

You are planning to purchase a house in five years and intend to save a fixed amount of money each month for a down payment.What are three important considerations in selecting a savings plan?

Series EE bonds continue to earn interest for how many years?

Which CD attempts to attract savers with gifts or special rates?

What type of account would you expect to provide the poorest yield?

The business hours and ATM locations of a financial institution refer to the ________ feature when selecting a financial institution.

Demand deposits are another term for checking accounts.

A $200 savings account that earns $8.50 interest in a year has a yield of ________ percent.

What type of account would be considered the most liquid?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 5: Financial Services: Savings Plans and Payment Accounts

Determine the rate of return on a savings account in which you deposited $200.00 and earned $5.00 in interest after one year.

When interest rates are rising,a person should select:

Checking accounts are frequently referred to as ________ deposits.

Which of the following has the main purpose of issuing a policy that provides financial security for dependents?

Your bank statement shows a balance of $695.Your checkbook register shows a balance of $562.You earned interest of $3 and had a service charge of $5.There are no outstanding deposits.What is the amount of outstanding checks?

Which one of the following is not true for PayNearMe transactions?

A debit card transaction is processed by a retailer,with the amount of purchases deducted from your checking account by:

Automatically buying a new CD upon maturity of the current CD is commonly referred to as:

Which CD starts with a higher rate,has a long time to maturity,and can be closed by the bank after a set time period?

To avoid high fees for cash loans,a person should avoid borrowing from a:

A ________ endorsement would be used if a person is presenting a check in person to obtain cash.

A savings account earns 3 percent.If the saver is in a 22 percent tax bracket,the after-tax savings rate of return would be ________ percent.

You are planning to purchase a house in five years and intend to save a fixed amount of money each month for a down payment.What are three important considerations in selecting a savings plan?

Series EE bonds continue to earn interest for how many years?

Which CD attempts to attract savers with gifts or special rates?

What type of account would you expect to provide the poorest yield?

The business hours and ATM locations of a financial institution refer to the ________ feature when selecting a financial institution.

Demand deposits are another term for checking accounts.

A $200 savings account that earns $8.50 interest in a year has a yield of ________ percent.

What type of account would be considered the most liquid?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters