Question 1

Savings compounded ________ would have the highest effective yield.

Accepted Answer

A) daily 
B) annually 
C) semiannually 
D) monthly 
E) weekly 
A) daily 
B) annually 
C) semiannually 
D) monthly 
E) weekly

Question 2

Based on the following information,what amount would be subtracted from the bank statement side of the bank reconciliation? ATM withdrawal $20; Outstanding checks $154; Interest $1.25; Deposit in transit $75.

Accepted Answer

A) $154.00 
B) $20.00 
C) $174.00 
D) $155.25 
E) $75.00 
A) $154.00 
B) $20.00 
C) $174.00 
D) $155.25 
E) $75.00

Question 3

Which one of the following is true for an interest-earning account?

Accepted Answer

A) It usually requires a minimum balance. 
B) It is an account that charges a fee for each check written. 
C) It does not earn interest. 
D) It does not require a minimum balance. 
E) None of these are true. 
A) It usually requires a minimum balance. 
B) It is an account that charges a fee for each check written. 
C) It does not earn interest. 
D) It does not require a minimum balance. 
E) None of these are true.

Question 4

Which one of the following savings plans is not covered by federal deposit insurance?

Accepted Answer

A) Account at a savings and loan 
B) Regular checking account at a commercial bank 
C) Money market account at a commercial bank 
D) Money market fund with an investment company 
E) Certificate of deposit at a commercial bank 
A) Account at a savings and loan 
B) Regular checking account at a commercial bank 
C) Money market account at a commercial bank 
D) Money market fund with an investment company 
E) Certificate of deposit at a commercial bank

Question 5

In the bank reconciliation process,ATM withdrawals should be:

Accepted Answer

A) added to the bank statement balance. 
B) subtracted from the bank statement balance. 
C) added to the checkbook balance. 
D) subtracted from the checkbook balance. 
E) ignored. 
A) added to the bank statement balance. 
B) subtracted from the bank statement balance. 
C) added to the checkbook balance. 
D) subtracted from the checkbook balance. 
E) ignored.

Question 6

Josh earned $84 on $1,200 invested in a high yield money market account.He is taxed at 22% of his earnings.What is the after-tax yield on his investment?

Accepted Answer

Josh earned 7% ($84/$1,200)on his high y

Question 7

Describe mobile transfer apps and how they work.

Accepted Answer

Apps for mobile payments are available t

Question 8

Which of the following represent the use of credit?

Accepted Answer

A) Demand deposits 
B) Home mortgage 
C) ATM withdrawals 
D) Time deposits 
E) Debit card 
A) Demand deposits 
B) Home mortgage 
C) ATM withdrawals 
D) Time deposits 
E) Debit card

Question 9

A common service offered by investment companies is:

Accepted Answer

A) interest-bearing checking accounts. 
B) variable-rate loans. 
C) credit card accounts. 
D) savings bonds. 
E) money market funds. 
A) interest-bearing checking accounts. 
B) variable-rate loans. 
C) credit card accounts. 
D) savings bonds. 
E) money market funds.

Question 10

What are the main types of deposit institutions and nondeposit institutions used by consumers?

Accepted Answer

The major types of deposit institutions

Question 11

Which of the following is organized as a corporation and owned by stockholders?

Accepted Answer

A) Credit unions 
B) Investment companies 
C) Mutual savings banks 
D) Savings and loan associations 
E) Commercial banks 
A) Credit unions 
B) Investment companies 
C) Mutual savings banks 
D) Savings and loan associations 
E) Commercial banks

Question 12

A personal check with guaranteed payment is called a:

Accepted Answer

A) traveler's check. 
B) bank draft. 
C) certified check. 
D) money order. 
E) cashier's check. 
A) traveler's check. 
B) bank draft. 
C) certified check. 
D) money order. 
E) cashier's check.

Question 13

Which of the following types of financial institutions are insured by federal government agencies?

Accepted Answer

A) Credit card companies and finance companies 
B) Credit unions and investment firms 
C) Mortgage companies,banks,and credit unions 
D) Banks,credit unions,and savings and loans associations 
E) Banks,credit card companies,and credit unions 
A) Credit card companies and finance companies 
B) Credit unions and investment firms 
C) Mortgage companies,banks,and credit unions 
D) Banks,credit unions,and savings and loans associations 
E) Banks,credit card companies,and credit unions

Question 14

The Federal Deposit Insurance Corporation insures savings plans at:

Accepted Answer

A) credit unions and mutual savings banks. 
B) commercial banks and savings and loan associations. 
C) investment companies and finance companies. 
D) insurance companies and credit unions. 
E) commercial banks and credit unions. 
A) credit unions and mutual savings banks. 
B) commercial banks and savings and loan associations. 
C) investment companies and finance companies. 
D) insurance companies and credit unions. 
E) commercial banks and credit unions.

Question 15

What is the rate that banks charge large corporations for loans called?

Accepted Answer

A) Prime rate 
B) Discount rate 
C) Mortgage rate 
D) Treasury bond rate 
E) Corporate bond rate 
A) Prime rate 
B) Discount rate 
C) Mortgage rate 
D) Treasury bond rate 
E) Corporate bond rate

Question 16

In recent years,membership in credit unions has:

Accepted Answer

A) become more difficult due to higher taxes. 
B) become more flexible. 
C) been limited to government employees. 
D) declined due to poor credit union management. 
E) stayed at about the same level. 
A) become more difficult due to higher taxes. 
B) become more flexible. 
C) been limited to government employees. 
D) declined due to poor credit union management. 
E) stayed at about the same level.

Question 17

Which one of the following will help to avoid identity theft?

Accepted Answer

A) Put your Social Security number on checks. 
B) Put your full name on checks. 
C) Put your full account number on checks when paying a bill. 
D) Use passwords involving both letters,special characters,and numbers. 
E) Check your credit report once every three years. 
A) Put your Social Security number on checks. 
B) Put your full name on checks. 
C) Put your full account number on checks when paying a bill. 
D) Use passwords involving both letters,special characters,and numbers. 
E) Check your credit report once every three years.

Question 18

Which one of the following will help to avoid identity theft?

Accepted Answer

A) Download apps from any app store. 
B) Avoid sharing personal data on social media. 
C) Use public Wi-Fi networks. 
D) Avoid anti-spam software. 
E) Mail bill payments from home mailbox. 
A) Download apps from any app store. 
B) Avoid sharing personal data on social media. 
C) Use public Wi-Fi networks. 
D) Avoid anti-spam software. 
E) Mail bill payments from home mailbox.

Question 19

A higher rate of return would result from a savings account that had which of the following compounding frequencies?

Accepted Answer

A) Daily 
B) Weekly 
C) Biweekly 
D) Monthly 
E) Yearly 
A) Daily 
B) Weekly 
C) Biweekly 
D) Monthly 
E) Yearly

Question 20

Demand deposits are another term for:

Accepted Answer

A) savings accounts. 
B) savings bonds. 
C) checking accounts. 
D) certificates of deposit. 
E) investment accounts. 
A) savings accounts. 
B) savings bonds. 
C) checking accounts. 
D) certificates of deposit. 
E) investment accounts.

Savings compounded ________ would have the highest effective yield.

Based on the following information,what amount would be subtracted from the bank statement side of the bank reconciliation? ATM withdrawal $20; Outstanding checks $154; Interest $1.25; Deposit in transit $75.

Which one of the following is true for an interest-earning account?

Which one of the following savings plans is not covered by federal deposit insurance?

In the bank reconciliation process,ATM withdrawals should be:

Josh earned $84 on $1,200 invested in a high yield money market account.He is taxed at 22% of his earnings.What is the after-tax yield on his investment?

Describe mobile transfer apps and how they work.

Which of the following represent the use of credit?

A common service offered by investment companies is:

What are the main types of deposit institutions and nondeposit institutions used by consumers?

Which of the following is organized as a corporation and owned by stockholders?

A personal check with guaranteed payment is called a:

Which of the following types of financial institutions are insured by federal government agencies?

The Federal Deposit Insurance Corporation insures savings plans at:

What is the rate that banks charge large corporations for loans called?

In recent years,membership in credit unions has:

Which one of the following will help to avoid identity theft?

Which one of the following will help to avoid identity theft?

A higher rate of return would result from a savings account that had which of the following compounding frequencies?

Demand deposits are another term for:

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

Exam 5: Financial Services: Savings Plans and Payment Accounts

Savings compounded ________ would have the highest effective yield.

Based on the following information,what amount would be subtracted from the bank statement side of the bank reconciliation? ATM withdrawal $20; Outstanding checks $154; Interest $1.25; Deposit in transit $75.

Which one of the following is true for an interest-earning account?

Which one of the following savings plans is not covered by federal deposit insurance?

In the bank reconciliation process,ATM withdrawals should be:

Josh earned $84 on $1,200 invested in a high yield money market account.He is taxed at 22% of his earnings.What is the after-tax yield on his investment?

Describe mobile transfer apps and how they work.

Which of the following represent the use of credit?

A common service offered by investment companies is:

What are the main types of deposit institutions and nondeposit institutions used by consumers?

Which of the following is organized as a corporation and owned by stockholders?

A personal check with guaranteed payment is called a:

Which of the following types of financial institutions are insured by federal government agencies?

The Federal Deposit Insurance Corporation insures savings plans at:

What is the rate that banks charge large corporations for loans called?

In recent years,membership in credit unions has:

Which one of the following will help to avoid identity theft?

Which one of the following will help to avoid identity theft?

A higher rate of return would result from a savings account that had which of the following compounding frequencies?

Demand deposits are another term for:

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