Question 1

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

Accepted Answer

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

Question 2

A restrictive endorsement will usually include the words "for deposit only."

Accepted Answer

A) True 
 B)False

Question 3

Brad Kellogg maintains a monthly balance in his checking account of approximately $150, writes about 25 checks a month, and makes three deposits each month. How would Brad decide which one of the following checking accounts he should use?

Accepted Answer

Bank A: regular checking account with a

Question 4

Which of the following is not a deposit institution?

Accepted Answer

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

Question 5

To avoid high fees for loans, a person should avoid borrowing from a:

Accepted Answer

A)  credit union. 
B)  savings and loan association. 
C)  pawn shop. 
D)  commercial bank. 
E)  mutual savings bank. 
A)  credit union. 
B)  savings and loan association. 
C)  pawn shop. 
D)  commercial bank. 
E)  mutual savings bank.

Question 6

Traditionally, the greatest variety of financial services is offered by:

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 7

Series EE bonds continue to earn interest for how many years?

Accepted Answer

A)  10 
B)  20 
C)  25 
D)  30 
E)  35 
A)  10 
B)  20 
C)  25 
D)  30 
E)  35

Question 8

A regular savings account usually offers a higher rate of return to savers than other savings plans.

Accepted Answer

A) True 
 B)False

Question 9

The purpose of a "special" endorsement is to:

Accepted Answer

A)  cash a check. 
B)  deposit a check. 
C)  transfer a check to another person. 
D)  withdraw cash from your account. 
E)  reduce the charge for service fees. 
A)  cash a check. 
B)  deposit a check. 
C)  transfer a check to another person. 
D)  withdraw cash from your account. 
E)  reduce the charge for service fees.

Question 10

Which of the following represent the use of credit?

Accepted Answer

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

Question 11

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

Question 12

The purpose of a debit card is to:

Accepted Answer

A)  obtain a discount on consumer purchases. 
B)  make credit card purchases. 
C)  quickly obtain a cash loan. 
D)  make investments with an investment company. 
E)  transfer money electronically. 
A)  obtain a discount on consumer purchases. 
B)  make credit card purchases. 
C)  quickly obtain a cash loan. 
D)  make investments with an investment company. 
E)  transfer money electronically.

Question 13

Based on the following information, what amount would be subtracted from the bank balance side of the checking account reconciliation? Service charge $12; Outstanding checks $145; Interest $3.50; Deposit in transit $80.

Accepted Answer

A)  $145.00 
B)  $12.00 
C)  $157.00 
D)  $148.50 
E)  $80.00 
A)  $145.00 
B)  $12.00 
C)  $157.00 
D)  $148.50 
E)  $80.00

Question 14

Which is an advantage of investing in Series EE U.S. Savings Bonds?

Accepted Answer

A)  When a bond is cashed, the earned interest is exempt from federal income taxes. 
B)  Interest is not taxed by the federal government until the bond is cashed. 
C)  The interest rate on the bond is adjusted to keep up with inflation. 
D)  Series EE Bonds can be sold at a profit on the open bond market. 
E)  The rates on Series EE Bonds are usually higher than the rates offered on stocks or corporate bonds. 
A)  When a bond is cashed, the earned interest is exempt from federal income taxes. 
B)  Interest is not taxed by the federal government until the bond is cashed. 
C)  The interest rate on the bond is adjusted to keep up with inflation. 
D)  Series EE Bonds can be sold at a profit on the open bond market. 
E)  The rates on Series EE Bonds are usually higher than the rates offered on stocks or corporate bonds.

Question 15

The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Suzanne has $200,000 in an individual account and $424,000 in a joint account with her husband, Ted. How much of Suzanne's money is not covered by FDIC insurance?

Accepted Answer

A)  $162,000 
B)  $174,000 
C)  $374,000 
D)  $50,000 
E)  $0 
A)  $162,000 
B)  $174,000 
C)  $374,000 
D)  $50,000 
E)  $0

Question 16

What is the rate that commercial 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 17

What is the rate an individual will pay for borrowing to purchase a new home 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 18

A certificate of deposit is usually considered to be very liquid.

Accepted Answer

A) True 
 B)False

Question 19

A _______ endorsement 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

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

A restrictive endorsement will usually include the words "for deposit only."

Brad Kellogg maintains a monthly balance in his checking account of approximately $150, writes about 25 checks a month, and makes three deposits each month. How would Brad decide which one of the following checking accounts he should use?

Which of the following is not a deposit institution?

To avoid high fees for loans, a person should avoid borrowing from a:

Traditionally, the greatest variety of financial services is offered by:

Series EE bonds continue to earn interest for how many years?

A regular savings account usually offers a higher rate of return to savers than other savings plans.

The purpose of a "special" endorsement is to:

Which of the following represent the use of credit?

The major service offered by investment companies is:

The purpose of a debit card is to:

Based on the following information, what amount would be subtracted from the bank balance side of the checking account reconciliation? Service charge $12; Outstanding checks $145; Interest $3.50; Deposit in transit $80.

Which is an advantage of investing in Series EE U.S. Savings Bonds?

The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Suzanne has $200,000 in an individual account and $424,000 in a joint account with her husband, Ted. How much of Suzanne's money is not covered by FDIC insurance?

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

What is the rate an individual will pay for borrowing to purchase a new home called?

A certificate of deposit is usually considered to be very liquid.

A _______ endorsement is especially useful when you are depositing checks.

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

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

A restrictive endorsement will usually include the words "for deposit only."

Brad Kellogg maintains a monthly balance in his checking account of approximately $150, writes about 25 checks a month, and makes three deposits each month. How would Brad decide which one of the following checking accounts he should use?

Which of the following is not a deposit institution?

To avoid high fees for loans, a person should avoid borrowing from a:

Traditionally, the greatest variety of financial services is offered by:

Series EE bonds continue to earn interest for how many years?

A regular savings account usually offers a higher rate of return to savers than other savings plans.

The purpose of a "special" endorsement is to:

Which of the following represent the use of credit?

The major service offered by investment companies is:

The purpose of a debit card is to:

Based on the following information, what amount would be subtracted from the bank balance side of the checking account reconciliation? Service charge $12; Outstanding checks $145; Interest $3.50; Deposit in transit $80.

Which is an advantage of investing in Series EE U.S. Savings Bonds?

The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Suzanne has $200,000 in an individual account and $424,000 in a joint account with her husband, Ted. How much of Suzanne's money is not covered by FDIC insurance?

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

What is the rate an individual will pay for borrowing to purchase a new home called?

A certificate of deposit is usually considered to be very liquid.

A _______ endorsement is especially useful when you are depositing checks.

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