Question 1

Which of the following statements regarding the cost of a checking account is true?

Accepted Answer

A)  Most banks and other depository institutions allow unlimited free check-writing privileges. 
B)  Most banks charge a fee when a checking account balance drops below a required minimum. 
C)  Most banks use the daily balance in an account to determine whether to levy a service charge. 
D)  The average charge of a returned check is between $35 and $50. 
E)  Most banks do not charge for using the automated teller machine (ATM) of another bank that is not a member of the same network. 
A)  Most banks and other depository institutions allow unlimited free check-writing privileges. 
B)  Most banks charge a fee when a checking account balance drops below a required minimum. 
C)  Most banks use the daily balance in an account to determine whether to levy a service charge. 
D)  The average charge of a returned check is between $35 and $50. 
E)  Most banks do not charge for using the automated teller machine (ATM) of another bank that is not a member of the same network. B

Question 2

Interest earned for a period should be added to the ending balance shown in your checkbook while reconciling your account.

Accepted Answer

A) True 
 B)False  True

Question 3

Savings deposits are also known as:

Accepted Answer

A)  time deposits. 
B)  negotiable order of withdrawal (NOW) accounts. 
C)  demand deposits. 
D)  share draft accounts. 
E)  direct deposits. 
A)  time deposits. 
B)  negotiable order of withdrawal (NOW) accounts. 
C)  demand deposits. 
D)  share draft accounts. 
E)  direct deposits. A

Question 4

Macie has $25 in her checking account when her electronic funds transfer system (EFTS) card and personal identification number (PIN) are stolen. If Macie notifies her bank tomorrow, the day after the theft of her card, her loss is limited to:

Accepted Answer

A)  $0. 
B)  $25. 
C)  $50. 
D)  $400. 
E)  $500. 
A)  $0. 
B)  $25. 
C)  $50. 
D)  $400. 
E)  $500.

Question 5

Credit unions are:

Accepted Answer

A)  member-owned financial cooperatives. 
B)  mortgage lenders. 
C)  available to the general public. 
D)  special commercial lenders. 
E)  large institutions when compared with commercial banks. 
A)  member-owned financial cooperatives. 
B)  mortgage lenders. 
C)  available to the general public. 
D)  special commercial lenders. 
E)  large institutions when compared with commercial banks.

Question 6

Funds in commercial banks are protected by the:

Accepted Answer

A)  National Credit Union Administration (NCU
A) . 
B)  Federal Depositors Assurance Corporation (FDA
C) . 
C)  Federal Deposit Insurance Corporation (FDI
C) . 
D)  National Credit Union Share Insurance Fund (NCUSIF). 
E)  Savings Association Insurance Fund (SAIF). 
A)  National Credit Union Administration (NCU
A) . 
B)  Federal Depositors Assurance Corporation (FDA
C) . 
C)  Federal Deposit Insurance Corporation (FDI
C) . 
D)  National Credit Union Share Insurance Fund (NCUSIF). 
E)  Savings Association Insurance Fund (SAIF).

Question 7

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. 
You would expect to find an asset management account (MMA) at a [ commercial bank | brokerage firm ].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 8

Money market mutual funds (MMMFs):

Accepted Answer

A)  allow check-writing privileges above a stipulated minimum amount. 
B)  are federally insured. 
C)  have floating maturity dates. 
D)  are offered by savings and loan associations (S&Ls) and credit unions. 
E)  pay interest at rates of 1 to 3% lower than those paid by a regular savings account. 
A)  allow check-writing privileges above a stipulated minimum amount. 
B)  are federally insured. 
C)  have floating maturity dates. 
D)  are offered by savings and loan associations (S&Ls) and credit unions. 
E)  pay interest at rates of 1 to 3% lower than those paid by a regular savings account.

Question 9

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding for a given nominal interest rate.

Accepted Answer

A) True 
 B)False

Question 10

The Federal Deposit Insurance Corporation (FDIC) insures each _____  up to a stated maximum dollar amount at any given financial institution.

Accepted Answer

A)  depositor 
B)  account 
C)  shareholder 
D)  bank 
E)  financial transaction 
A)  depositor 
B)  account 
C)  shareholder 
D)  bank 
E)  financial transaction

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. 
[ I savings bonds  | Treasury bills ] are sold at face value.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 12

A safe-deposit box in a bank can be opened only when the:

Accepted Answer

A)  banker's key is used. 
B)  account holder's key is used. 
C)  keys of both the banker and the account holder are used. 
D)  key issued to the insurance company is used. 
E)  keys of both the banker and the insurance company are used. 
A)  banker's key is used. 
B)  account holder's key is used. 
C)  keys of both the banker and the account holder are used. 
D)  key issued to the insurance company is used. 
E)  keys of both the banker and the insurance company are used.

Question 13

Which of the following is a rented drawer in a bank's vault?

Accepted Answer

A)  Safe-deposit box 
B)  Asset management account (AM
A)  
C)  Debit card 
D)  Negotiable order of withdrawal (NOW) account 
E)  Trust service 
A)  Safe-deposit box 
B)  Asset management account (AM
A)  
C)  Debit card 
D)  Negotiable order of withdrawal (NOW) account 
E)  Trust service

Question 14

In which of the following states would you most likely find a savings bank?

Accepted Answer

A)  Massachusetts 
B)  Florida 
C)  Texas 
D)  California 
E)  Ohio 
A)  Massachusetts 
B)  Florida 
C)  Texas 
D)  California 
E)  Ohio

Question 15

You had $800 in your checking account when your electronic funds transfer system (EFTS) card and personal identification number (PIN) were stolen. You didn't report the theft for 2 months after your periodic statement was mailed. How much could you lose?

Accepted Answer

A)  $0 
B)  $50 
C)  $400 
D)  $800 
E)  $800 plus a fee 
A)  $0 
B)  $50 
C)  $400 
D)  $800 
E)  $800 plus a fee

Question 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. 
"For deposit only" would indicate a [ blank | restrictive ] endorsement.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 17

Banks must notify customers _____ days in advance before lowering rates on deposit accounts or certificates of deposit (CDs).

Accepted Answer

A)  30 
B)  60 
C)  15 
D)  45 
E)  10 
A)  30 
B)  60 
C)  15 
D)  45 
E)  10

Question 18

Visa and MasterCard issue debit cards linked to your checking account.

Accepted Answer

A) True 
 B)False

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. 
A negative inflation-adjusted real interest rate is [ good | bad ] for the overall economy.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 20

Christina's bank allows her employer to directly deposit her paycheck into her personal bank account. This service provided by Christina's bank is called a(n):

Accepted Answer

A)  automated teller machine (ATM) service. 
B)  Federal Deposit Insurance Corporation (FDI
C)  service. 
C)  money market service. 
D)  electronic funds transfer system (EFTS) service. 
E)  overdraft service. 
A)  automated teller machine (ATM) service. 
B)  Federal Deposit Insurance Corporation (FDI
C)  service. 
C)  money market service. 
D)  electronic funds transfer system (EFTS) service. 
E)  overdraft service.

Which of the following statements regarding the cost of a checking account is true?

Interest earned for a period should be added to the ending balance shown in your checkbook while reconciling your account.

Savings deposits are also known as:

Macie has $25 in her checking account when her electronic funds transfer system (EFTS) card and personal identification number (PIN) are stolen. If Macie notifies her bank tomorrow, the day after the theft of her card, her loss is limited to:

Credit unions are:

Funds in commercial banks are protected by the:

Money market mutual funds (MMMFs):

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding for a given nominal interest rate.

The Federal Deposit Insurance Corporation (FDIC) insures each _____ up to a stated maximum dollar amount at any given financial institution.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. [ I savings bonds | Treasury bills ] are sold at face value.

A safe-deposit box in a bank can be opened only when the:

Which of the following is a rented drawer in a bank's vault?

In which of the following states would you most likely find a savings bank?

You had $800 in your checking account when your electronic funds transfer system (EFTS) card and personal identification number (PIN) were stolen. You didn't report the theft for 2 months after your periodic statement was mailed. How much could you lose?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. "For deposit only" would indicate a [ blank | restrictive ] endorsement.

Banks must notify customers _____ days in advance before lowering rates on deposit accounts or certificates of deposit (CDs).

Visa and MasterCard issue debit cards linked to your checking account.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. A negative inflation-adjusted real interest rate is [ good | bad ] for the overall economy.

Christina's bank allows her employer to directly deposit her paycheck into her personal bank account. This service provided by Christina's bank is called a(n):

Understanding the Financial Planning Process

Developing Your Financial Statements and Plans

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 4: Managing Your Cash and Savings

Which of the following statements regarding the cost of a checking account is true?

Interest earned for a period should be added to the ending balance shown in your checkbook while reconciling your account.

Savings deposits are also known as:

Macie has $25 in her checking account when her electronic funds transfer system (EFTS) card and personal identification number (PIN) are stolen. If Macie notifies her bank tomorrow, the day after the theft of her card, her loss is limited to:

Credit unions are:

Funds in commercial banks are protected by the:

Money market mutual funds (MMMFs):

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding for a given nominal interest rate.

The Federal Deposit Insurance Corporation (FDIC) insures each _____ up to a stated maximum dollar amount at any given financial institution.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. [ I savings bonds | Treasury bills ] are sold at face value.

A safe-deposit box in a bank can be opened only when the:

Which of the following is a rented drawer in a bank's vault?

In which of the following states would you most likely find a savings bank?

You had $800 in your checking account when your electronic funds transfer system (EFTS) card and personal identification number (PIN) were stolen. You didn't report the theft for 2 months after your periodic statement was mailed. How much could you lose?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. "For deposit only" would indicate a [ blank | restrictive ] endorsement.

Banks must notify customers _____ days in advance before lowering rates on deposit accounts or certificates of deposit (CDs).

Visa and MasterCard issue debit cards linked to your checking account.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. A negative inflation-adjusted real interest rate is [ good | bad ] for the overall economy.

Christina's bank allows her employer to directly deposit her paycheck into her personal bank account. This service provided by Christina's bank is called a(n):

Understanding the Financial Planning Process

Developing Your Financial Statements and Plans

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds and Real Estate

Planning for Retirement

Preserving Your Estate

Filters