Question 1

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 2

A saver will usually earn the highest rate with which one of the following types of savings plans?

Accepted Answer

A)  Certificate of deposit 
B)  Debit account 
C)  Passbook account 
D)  Share account 
E)  NOW account 
A)  Certificate of deposit 
B)  Debit account 
C)  Passbook account 
D)  Share account 
E)  NOW account

Question 3

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 4

Which law requires banks and other financial institutions to disclose fees, the annual percentage yield, and the other terms and conditions on checking and savings accounts?

Accepted Answer

A)  Truth in Savings Law 
B)  Truth in Lending Law 
C)  Expedited Funds Availability Act 
D)  Equal Employment Opportunity Act 
E)  Identity Theft Protection Act 
A)  Truth in Savings Law 
B)  Truth in Lending Law 
C)  Expedited Funds Availability Act 
D)  Equal Employment Opportunity Act 
E)  Identity Theft Protection Act

Question 5

The face value of a Series EE U.S. Savings Bond refers to the:

Accepted Answer

A)  original purchase price. 
B)  redemption value at maturity. 
C)  effective yield of the bond. 
D)  monthly interest accrual amount. 
E)  taxable portion of the accrued interest. 
A)  original purchase price. 
B)  redemption value at maturity. 
C)  effective yield of the bond. 
D)  monthly interest accrual amount. 
E)  taxable portion of the accrued interest.

Question 6

The Expedited Funds Availability Act requires that funds be available to depositors:

Accepted Answer

A)  within 5 days for local checks. 
B)  within 2 days for local checks. 
C)  within 2 days for both local checks and out-of-town checks. 
D)  within 2 days for out-of-town checks. 
E)  immediately upon deposit. 
A)  within 5 days for local checks. 
B)  within 2 days for local checks. 
C)  within 2 days for both local checks and out-of-town checks. 
D)  within 2 days for out-of-town checks. 
E)  immediately upon deposit.

Question 7

An asset management account combines several financial services for a single fee.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  Passbook 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)  Passbook 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 9

Which of the following institutions is organized primarily to provide loans to purchase homes?

Accepted Answer

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

Question 10

In recent years, membership in credit unions has:

Accepted Answer

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

Question 11

Determine the rate of return (yield) on a savings account in which you deposited $300.00 and earned $6.00 in interest after one year.

Accepted Answer

A)  5.00% 
B)  0.05% 
C)  2.00% 
D)  0.20% 
E)  18.00% 
A)  5.00% 
B)  0.05% 
C)  2.00% 
D)  0.20% 
E)  18.00%

Question 12

A ____________ endorsement would be used if a person is presenting a check in order 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 13

Which of the following types of financial institutions provide Federal Deposit Insurance (FDIC) coverage?

Accepted Answer

A)  Credit card companies and finance companies 
B)  Credit unions and brokerage firms 
C)  Mortgage companies, commercial banks, and credit unions 
D)  Commercial banks, credit unions, and savings and loans 
E)  Commercial banks, credit card companies, and credit unions 
A)  Credit card companies and finance companies 
B)  Credit unions and brokerage firms 
C)  Mortgage companies, commercial banks, and credit unions 
D)  Commercial banks, credit unions, and savings and loans 
E)  Commercial banks, credit card companies, and credit unions

Question 14

The business hours and location of a financial institution refer to the ____________ factor of 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 15

What are the main types of financial institutions used by consumers?

Accepted Answer

The answer of What are the main types of financial...

Question 16

Demand deposits are another term for checking accounts.

Accepted Answer

A) True 
 B)False

Question 17

The Truth-in-Savings law requires that financial institutions:

Accepted Answer

A)  provide insurance for savings accounts. 
B)  send customers monthly bank statements. 
C)  report annual percentage yield on savings. 
D)  offer adjustable rate savings accounts. 
E)  become members of the Federal Reserve System. 
A)  provide insurance for savings accounts. 
B)  send customers monthly bank statements. 
C)  report annual percentage yield on savings. 
D)  offer adjustable rate savings accounts. 
E)  become members of the Federal Reserve System.

Question 18

Which of the following institutions makes loans based on the value of tangibles possessions, such as jewelry and collectibles?

Accepted Answer

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

Question 19

Which of the following is an effective strategy in times of falling interest rates?

Accepted Answer

A)  Use long-term loans to take advantage of current low rates. 
B)  Use short-term loans to take advantage of lower rates when you refinance the loans. 
C)  Select short-term savings instruments to take advantage of higher rates when they mature. 
D)  Select short-term savings instruments to lock-in earnings at current high rates. 
E)  Select long-term savings instruments to lock-in earnings at current low rates. 
A)  Use long-term loans to take advantage of current low rates. 
B)  Use short-term loans to take advantage of lower rates when you refinance the loans. 
C)  Select short-term savings instruments to take advantage of higher rates when they mature. 
D)  Select short-term savings instruments to lock-in earnings at current high rates. 
E)  Select long-term savings instruments to lock-in earnings at current low rates.

Question 20

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. How will you invest your savings and what are important considerations in selecting an investment vehicle?

Accepted Answer

The answer of You are planning to purchase a house...

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

A saver will usually earn the highest rate with which one of the following types of savings plans?

The profits from a mutual savings bank go to the:

Which law requires banks and other financial institutions to disclose fees, the annual percentage yield, and the other terms and conditions on checking and savings accounts?

The face value of a Series EE U.S. Savings Bond refers to the:

The Expedited Funds Availability Act requires that funds be available to depositors:

An asset management account combines several financial services for a single fee.

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

Which of the following institutions is organized primarily to provide loans to purchase homes?

In recent years, membership in credit unions has:

Determine the rate of return (yield) on a savings account in which you deposited $300.00 and earned $6.00 in interest after one year.

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

Which of the following types of financial institutions provide Federal Deposit Insurance (FDIC) coverage?

The business hours and location of a financial institution refer to the ____________ factor of selecting a financial institution.

What are the main types of financial institutions used by consumers?

Demand deposits are another term for checking accounts.

The Truth-in-Savings law requires that financial institutions:

Which of the following institutions makes loans based on the value of tangibles possessions, such as jewelry and collectibles?

Which of the following is an effective strategy in times of falling interest rates?

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. How will you invest your savings and what are important considerations in selecting an investment vehicle?

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 CD attempts to attract savers with gifts or special rates?

A saver will usually earn the highest rate with which one of the following types of savings plans?

The profits from a mutual savings bank go to the:

Which law requires banks and other financial institutions to disclose fees, the annual percentage yield, and the other terms and conditions on checking and savings accounts?

The face value of a Series EE U.S. Savings Bond refers to the:

The Expedited Funds Availability Act requires that funds be available to depositors:

An asset management account combines several financial services for a single fee.

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

Which of the following institutions is organized primarily to provide loans to purchase homes?

In recent years, membership in credit unions has:

Determine the rate of return (yield) on a savings account in which you deposited $300.00 and earned $6.00 in interest after one year.

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

Which of the following types of financial institutions provide Federal Deposit Insurance (FDIC) coverage?

The business hours and location of a financial institution refer to the ____________ factor of selecting a financial institution.

What are the main types of financial institutions used by consumers?

Demand deposits are another term for checking accounts.

The Truth-in-Savings law requires that financial institutions:

Which of the following institutions makes loans based on the value of tangibles possessions, such as jewelry and collectibles?

Which of the following is an effective strategy in times of falling interest rates?

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. How will you invest your savings and what are important considerations in selecting an investment vehicle?

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