Question 1

Unlike other providers of financial services,depository institutions can both take deposits and make loans to consumers.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is the least expensive way of protecting yourself from fees should you overdraft your checking account.

Accepted Answer

A) An automatic funds transfer agreement 
B) An automatic overdraft loan agreement 
C) Opt-in overdraft/bounce protection 
D) Paying the overdraft/bounced check fee 
A) An automatic funds transfer agreement 
B) An automatic overdraft loan agreement 
C) Opt-in overdraft/bounce protection 
D) Paying the overdraft/bounced check fee

Question 3

Not-for-profit,common-bond financial institutions that are owned by their members are called

Accepted Answer

A) credit unions. 
B) mutual savings banks. 
C) credit bureaus. 
D) savings banks. 
A) credit unions. 
B) mutual savings banks. 
C) credit bureaus. 
D) savings banks.

Question 4

An automatic funds transfer agreement is usually the most expensive way to avoid bad check fees.

Accepted Answer

A) True 
 B)False

Question 5

Special concerns for blended families include

Accepted Answer

A) determining who assumes financial responsibility for biological offspring and stepchildren. 
B) handling resentment over alimony and child-support payments. 
C) managing unequal assets, incomes, responsibilities, and debts. 
D) (all of these) 
A) determining who assumes financial responsibility for biological offspring and stepchildren. 
B) handling resentment over alimony and child-support payments. 
C) managing unequal assets, incomes, responsibilities, and debts. 
D) (all of these)

Question 6

Credit unions typically offer the widest variety of financial services.

Accepted Answer

A) True 
 B)False

Question 7

Everything else being the same,an investor would prefer an asset management account that "sweeps" weekly rather than daily.

Accepted Answer

A) True 
 B)False

Question 8

A stop-payment order works only if the check has not yet cleared your financial institution.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is (are) required to withdraw money from an automated teller machine (ATM)?

Accepted Answer

A) Debit card 
B) Credit card 
C) Personal identification number 
D) ATM card and personal identification number 
A) Debit card 
B) Credit card 
C) Personal identification number 
D) ATM card and personal identification number

Question 10

If the balance on either a super NOW account or a money market deposit account falls below a specified level,the account generally earns interest at the lower rate paid on a regular NOW account.

Accepted Answer

A) True 
 B)False

Question 11

Absent-minded Alfred lost his debit card on May 1.He reported it missing the next day; however,$600 had been already purchased with the card without the use of his PIN number.According to the Electronic Funds Transfer Act,how much of this $600 loss is Alfred responsible for?

Accepted Answer

A) $0 
B) $50 
C) $500 
D) $600 
A) $0 
B) $50 
C) $500 
D) $600

Question 12

To be legally responsible for only the first $50 of unauthorized use,one must report an ATM card missing within two days after the loss or theft of the card.

Accepted Answer

A) True 
 B)False

Question 13

Checks allow you to transfer funds from your account to other people and organizations.

Accepted Answer

A) True 
 B)False

Question 14

Electronic benefits transfer (EBT) cards are used by the government to pay military personnel and provide Social Security and other government benefits.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a reason why you should reconcile your bank accounts regularly?

Accepted Answer

A) You or your bank may have made a computational error. 
B) Checks you have written may not have cleared your account. 
C) Fees may have been assessed lowering your balance below what you think you have on deposit. 
D) All of these 
A) You or your bank may have made a computational error. 
B) Checks you have written may not have cleared your account. 
C) Fees may have been assessed lowering your balance below what you think you have on deposit. 
D) All of these

Question 16

The Federal Deposit Insurance Corporation (FDIC) currently insures against loss of up to ____ per person in an individual account at any one institution.

Accepted Answer

A) $50,000 
B) $100,000 
C) $250,000 
D) $500,000 
A) $50,000 
B) $100,000 
C) $250,000 
D) $500,000

Question 17

Brokered certificates of deposit are available through stockbrokers.

Accepted Answer

A) True 
 B)False

Question 18

List the money market accounts according to the interest rate generally paid on each account (from highest to lowest).

Accepted Answer

A) Super NOW account, money market deposit account, and money market mutual fund 
B) Money market deposit account, money market mutual fund, and super NOW account 
C) Money market mutual fund, money market deposit account, and super NOW account 
D) Money market deposit account, super NOW account, and money market mutual fund 
A) Super NOW account, money market deposit account, and money market mutual fund 
B) Money market deposit account, money market mutual fund, and super NOW account 
C) Money market mutual fund, money market deposit account, and super NOW account 
D) Money market deposit account, super NOW account, and money market mutual fund

Question 19

Which of the following forms is used to notify you of the taxable interest you have earned in a given year from a checking or savings account?

Accepted Answer

A) 1099 Form 
B) W-2 Form 
C) 1040 Form 
D) W-4 Form 
A) 1099 Form 
B) W-2 Form 
C) 1040 Form 
D) W-4 Form

Question 20

Jack and Jill have trouble keeping their checking account balanced.Because they never know how much is really in their account,they have an automatic funds transfer agreement with their bank.When Jack or Jill writes a bad check,what will happen?

Accepted Answer

A) The needed funds will automatically be borrowed from their Visa account. 
B) The needed funds will automatically be transferred from their savings account. 
C) The bank will honor the check and then call Jack and Jill and ask that they deposit the needed funds into checking as soon as possible. 
D) The bank will stamp the check "insufficient funds" and return it to the payee. 
A) The needed funds will automatically be borrowed from their Visa account. 
B) The needed funds will automatically be transferred from their savings account. 
C) The bank will honor the check and then call Jack and Jill and ask that they deposit the needed funds into checking as soon as possible. 
D) The bank will stamp the check "insufficient funds" and return it to the payee.

Unlike other providers of financial services,depository institutions can both take deposits and make loans to consumers.

Which of the following is the least expensive way of protecting yourself from fees should you overdraft your checking account.

Not-for-profit,common-bond financial institutions that are owned by their members are called

An automatic funds transfer agreement is usually the most expensive way to avoid bad check fees.

Special concerns for blended families include

Credit unions typically offer the widest variety of financial services.

Everything else being the same,an investor would prefer an asset management account that "sweeps" weekly rather than daily.

A stop-payment order works only if the check has not yet cleared your financial institution.

Which of the following is (are) required to withdraw money from an automated teller machine (ATM)?

If the balance on either a super NOW account or a money market deposit account falls below a specified level,the account generally earns interest at the lower rate paid on a regular NOW account.

Absent-minded Alfred lost his debit card on May 1.He reported it missing the next day; however,$600 had been already purchased with the card without the use of his PIN number.According to the Electronic Funds Transfer Act,how much of this $600 loss is Alfred responsible for?

To be legally responsible for only the first $50 of unauthorized use,one must report an ATM card missing within two days after the loss or theft of the card.

Checks allow you to transfer funds from your account to other people and organizations.

Electronic benefits transfer (EBT) cards are used by the government to pay military personnel and provide Social Security and other government benefits.

Which of the following is a reason why you should reconcile your bank accounts regularly?

The Federal Deposit Insurance Corporation (FDIC) currently insures against loss of up to ____ per person in an individual account at any one institution.

Brokered certificates of deposit are available through stockbrokers.

List the money market accounts according to the interest rate generally paid on each account (from highest to lowest).

Which of the following forms is used to notify you of the taxable interest you have earned in a given year from a checking or savings account?

Jack and Jill have trouble keeping their checking account balanced.Because they never know how much is really in their account,they have an automatic funds transfer agreement with their bank.When Jack or Jill writes a bad check,what will happen?

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

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Exam 5: Managing Checking and Savings Accounts

Unlike other providers of financial services,depository institutions can both take deposits and make loans to consumers.

Which of the following is the least expensive way of protecting yourself from fees should you overdraft your checking account.

Not-for-profit,common-bond financial institutions that are owned by their members are called

An automatic funds transfer agreement is usually the most expensive way to avoid bad check fees.

Special concerns for blended families include

Credit unions typically offer the widest variety of financial services.

Everything else being the same,an investor would prefer an asset management account that "sweeps" weekly rather than daily.

A stop-payment order works only if the check has not yet cleared your financial institution.

Which of the following is (are) required to withdraw money from an automated teller machine (ATM)?

If the balance on either a super NOW account or a money market deposit account falls below a specified level,the account generally earns interest at the lower rate paid on a regular NOW account.

Absent-minded Alfred lost his debit card on May 1.He reported it missing the next day; however,$600 had been already purchased with the card without the use of his PIN number.According to the Electronic Funds Transfer Act,how much of this $600 loss is Alfred responsible for?

To be legally responsible for only the first $50 of unauthorized use,one must report an ATM card missing within two days after the loss or theft of the card.

Checks allow you to transfer funds from your account to other people and organizations.

Electronic benefits transfer (EBT) cards are used by the government to pay military personnel and provide Social Security and other government benefits.

Which of the following is a reason why you should reconcile your bank accounts regularly?

The Federal Deposit Insurance Corporation (FDIC) currently insures against loss of up to ____ per person in an individual account at any one institution.

Brokered certificates of deposit are available through stockbrokers.

List the money market accounts according to the interest rate generally paid on each account (from highest to lowest).

Which of the following forms is used to notify you of the taxable interest you have earned in a given year from a checking or savings account?

Jack and Jill have trouble keeping their checking account balanced.Because they never know how much is really in their account,they have an automatic funds transfer agreement with their bank.When Jack or Jill writes a bad check,what will happen?

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

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