Question 1

Which of the following institutions makes loans based on the value of tangible possessions,such as jewelry and other valuables?

Accepted Answer

A) Life insurance company 
B) Finance company 
C) Mortgage company 
D) Pawnshop 
E) Investment company 
A) Life insurance company 
B) Finance company 
C) Mortgage company 
D) Pawnshop 
E) Investment company

Question 2

The more frequently the compounding occurs,the less a person will earn on a savings account.

Accepted Answer

A) True 
 B)False

Question 3

A regular savings account at a credit union is called a ________ account.

Accepted Answer

A) share 
B) NOW 
C) club 
D) certificate 
E) money market 
A) share 
B) NOW 
C) club 
D) certificate 
E) money market

Question 4

Comparison of earnings for different savings plans can best be accomplished using the:

Accepted Answer

A) discounted present value. 
B) compounding frequencies. 
C) net present value. 
D) annual percentage yield. 
E) after-tax rate of return. 
A) discounted present value. 
B) compounding frequencies. 
C) net present value. 
D) annual percentage yield. 
E) after-tax rate of return.

Question 5

Which one of the following financial service providers should be avoided,because the interest rates charged on loans can be over 100% a year?

Accepted Answer

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

Question 6

A trust has the purpose of:

Accepted Answer

A) solving a person's financial problems. 
B) obtaining low-interest loans. 
C) handling daily money management activities. 
D) managing the assets of a person. 
E) improving a person's budgeting skills. 
A) solving a person's financial problems. 
B) obtaining low-interest loans. 
C) handling daily money management activities. 
D) managing the assets of a person. 
E) improving a person's budgeting skills.

Question 7

Using a debit card to make purchases means you are spending your own funds.

Accepted Answer

A) True 
 B)False

Question 8

Prepaid debit cards are used for:

Accepted Answer

A) Social Security benefits. 
B) school lunches. 
C) highway tolls. 
D) telephone service. 
E) All of these 
A) Social Security benefits. 
B) school lunches. 
C) highway tolls. 
D) telephone service. 
E) All of these

Question 9

The profits from a mutual savings bank go to the:

Accepted Answer

A) creditors. 
B) loan applicants. 
C) stockholders. 
D) depositors. 
E) community in which it operates. 
A) creditors. 
B) loan applicants. 
C) stockholders. 
D) depositors. 
E) community in which it operates.

Question 10

Which of the following is a user-owned,nonprofit,cooperative financial institution?

Accepted Answer

A) Life insurance company 
B) Investment company 
C) Mortgage company 
D) Pawnshop 
E) Credit union 
A) Life insurance company 
B) Investment company 
C) Mortgage company 
D) Pawnshop 
E) Credit union

Question 11

A regular savings account usually offers a higher rate of return to savers than a certificate of deposit.

Accepted Answer

A) True 
 B)False

Question 12

An asset management account typically offers the following service:

Accepted Answer

A) online banking. 
B) checking account. 
C) a line of credit. 
D) mobile apps. 
E) All of these 
A) online banking. 
B) checking account. 
C) a line of credit. 
D) mobile apps. 
E) All of these

Question 13

An asset management account provides a complete financial services program for a single fee.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements regarding debit and credit card liability is correct?

Accepted Answer

A) A credit card carries more risk of loss to the cardholder. 
B) A debit card carries more risk of loss to the cardholder. 
C) There is no cardholder liability if either type of card is lost. 
D) The Federal Government insures losses on credit but not debit cards. 
E) The Federal Government insures losses on debit but not credit cards. 
A) A credit card carries more risk of loss to the cardholder. 
B) A debit card carries more risk of loss to the cardholder. 
C) There is no cardholder liability if either type of card is lost. 
D) The Federal Government insures losses on credit but not debit cards. 
E) The Federal Government insures losses on debit but not credit cards.

Question 15

A ________ endorsement consists of the words "for deposit only" followed by your signature and account number and is especially useful when you are depositing checks.

Accepted Answer

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

Question 16

An all-purpose account offered by investment brokers that provides a complete financial services program is a(n):

Accepted Answer

A) NOW account. 
B) asset management account. 
C) EFT account. 
D) mutual fund. 
E) money market account. 
A) NOW account. 
B) asset management account. 
C) EFT account. 
D) mutual fund. 
E) money market account.

Question 17

Joan Martin expects interest rates to decline over the next few months.To achieve her long-term financial goals,she will trade off liquidity for a higher return by using a:

Accepted Answer

A) regular savings account. 
B) interest-bearing checking account. 
C) five-year certificate of deposit. 
D) money market account. 
E) money market fund. 
A) regular savings account. 
B) interest-bearing checking account. 
C) five-year certificate of deposit. 
D) money market account. 
E) money market fund.

Question 18

This type of financial institution is known to frequently offer lower fees and lower loan rates:

Accepted Answer

A) Commercial bank 
B) Savings and loans association 
C) Mutual savings bank 
D) Credit union 
E) Investment companies 
A) Commercial bank 
B) Savings and loans association 
C) Mutual savings bank 
D) Credit union 
E) Investment companies

Question 19

Which of the following is not a "High-Cost Financial Service Provider"?

Accepted Answer

A) Pawnshops 
B) P2P lending intermediaries 
C) Payday loan companies 
D) Rent-to-own centers 
E) Car title loan companies 
A) Pawnshops 
B) P2P lending intermediaries 
C) Payday loan companies 
D) Rent-to-own centers 
E) Car title loan companies

Question 20

Which is a true of investing in Series EE U.S.Savings Bonds?

Accepted Answer

A) The interest earned is always exempt from federal income taxes. 
B) Federal income tax on earnings may be deferred until the bonds are redeemed. 
C) The interest rate on these bonds is adjusted twice a year for inflation. 
D) Series EE Bonds must be purchased for set amounts over $100. 
E) They can be redeemed any time without forfeiting interest. 
A) The interest earned is always exempt from federal income taxes. 
B) Federal income tax on earnings may be deferred until the bonds are redeemed. 
C) The interest rate on these bonds is adjusted twice a year for inflation. 
D) Series EE Bonds must be purchased for set amounts over $100. 
E) They can be redeemed any time without forfeiting interest.

Which of the following institutions makes loans based on the value of tangible possessions,such as jewelry and other valuables?

The more frequently the compounding occurs,the less a person will earn on a savings account.

A regular savings account at a credit union is called a ________ account.

Comparison of earnings for different savings plans can best be accomplished using the:

Which one of the following financial service providers should be avoided,because the interest rates charged on loans can be over 100% a year?

A trust has the purpose of:

Using a debit card to make purchases means you are spending your own funds.

Prepaid debit cards are used for:

The profits from a mutual savings bank go to the:

Which of the following is a user-owned,nonprofit,cooperative financial institution?

A regular savings account usually offers a higher rate of return to savers than a certificate of deposit.

An asset management account typically offers the following service:

An asset management account provides a complete financial services program for a single fee.

Which of the following statements regarding debit and credit card liability is correct?

A ________ endorsement consists of the words "for deposit only" followed by your signature and account number and is especially useful when you are depositing checks.

An all-purpose account offered by investment brokers that provides a complete financial services program is a(n):

Joan Martin expects interest rates to decline over the next few months.To achieve her long-term financial goals,she will trade off liquidity for a higher return by using a:

This type of financial institution is known to frequently offer lower fees and lower loan rates:

Which of the following is not a "High-Cost Financial Service Provider"?

Which is a true of investing in Series EE U.S.Savings Bonds?

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

Which of the following institutions makes loans based on the value of tangible possessions,such as jewelry and other valuables?

The more frequently the compounding occurs,the less a person will earn on a savings account.

A regular savings account at a credit union is called a ________ account.

Comparison of earnings for different savings plans can best be accomplished using the:

Which one of the following financial service providers should be avoided,because the interest rates charged on loans can be over 100% a year?

A trust has the purpose of:

Using a debit card to make purchases means you are spending your own funds.

Prepaid debit cards are used for:

The profits from a mutual savings bank go to the:

Which of the following is a user-owned,nonprofit,cooperative financial institution?

A regular savings account usually offers a higher rate of return to savers than a certificate of deposit.

An asset management account typically offers the following service:

An asset management account provides a complete financial services program for a single fee.

Which of the following statements regarding debit and credit card liability is correct?

A ________ endorsement consists of the words "for deposit only" followed by your signature and account number and is especially useful when you are depositing checks.

An all-purpose account offered by investment brokers that provides a complete financial services program is a(n):

Joan Martin expects interest rates to decline over the next few months.To achieve her long-term financial goals,she will trade off liquidity for a higher return by using a:

This type of financial institution is known to frequently offer lower fees and lower loan rates:

Which of the following is not a "High-Cost Financial Service Provider"?

Which is a true of investing in Series EE U.S.Savings Bonds?

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