Question 1

Which of the following are protected by the Federal Deposit Insurance Corporation (FDIC)?

Accepted Answer

A) Money market deposit accounts 
B) Money market mutual funds 
C) Asset management accounts 
D) Stocks and bonds 
E) Life insurance policies 
A) Money market deposit accounts 
B) Money market mutual funds 
C) Asset management accounts 
D) Stocks and bonds 
E) Life insurance policies

Question 2

Low interest rates ____________. ​

Accepted Answer

A) increase the number of financial institutions 
B) do not impact the supply of credit 
C) increase the demand for lower-grade riskier bonds 
D) decrease employment opportunities 
A) increase the number of financial institutions 
B) do not impact the supply of credit 
C) increase the demand for lower-grade riskier bonds 
D) decrease employment opportunities

Question 3

A check you issued last week has been stolen.You can prevent the amount on the check from being withdrawn from your account by an unauthorized person by:

Accepted Answer

A) writing a new check. 
B) depositing the correct amount of money. 
C) requesting a stop payment. 
D) tearing up the check. 
E) properly endorsing the check. 
A) writing a new check. 
B) depositing the correct amount of money. 
C) requesting a stop payment. 
D) tearing up the check. 
E) properly endorsing the check.

Question 4

Liquid assets would include your savings account and your ____________. ​

Accepted Answer

A) money market deposit account 
B) 10-year Treasury bond 
C) 3-year certificate of deposit purchased in the current financial year 
D) Series EE U.S.savings bond 
A) money market deposit account 
B) 10-year Treasury bond 
C) 3-year certificate of deposit purchased in the current financial year 
D) Series EE U.S.savings bond

Question 5

You are going on an overseas trip,and you want to carry checks.You should purchase:

Accepted Answer

A) cashier's checks. 
B) certified checks. 
C) conditional checks. 
D) traveler's checks. 
E) guaranteed checks. 
A) cashier's checks. 
B) certified checks. 
C) conditional checks. 
D) traveler's checks. 
E) guaranteed checks.

Question 6

Mary has calculated her adjusted balance as $500.She notices that her bank's service charges are $20 for this period.Mary's ending balance in her bank account is _____.

Accepted Answer

A) $520 
B) $480 
C) $600 
D) $500 
E) $510 
A) $520 
B) $480 
C) $600 
D) $500 
E) $510

Question 7

At maturity,a deposit of $6,000 in a certificate of deposit (CD)for 10 years at 3% will be worth: (Select the closest answer.)

Accepted Answer

A) $7,340. 
B) $7,800. 
C) $8,064. 
D) $8,678. 
E) $9,005. 
A) $7,340. 
B) $7,800. 
C) $8,064. 
D) $8,678. 
E) $9,005.

Question 8

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 9

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 10

The Federal Deposit Insurance Corporation (FDIC)covers stocks,bonds,and mutual funds purchased at banks.

Accepted Answer

A) True 
 B)False

Question 11

A certified check is a personal check that a bank certifies to guarantee that funds are available.

Accepted Answer

A) True 
 B)False

Question 12

In account reconciliation,one of the steps in calculating adjusted bank balance is ____________. ​

Accepted Answer

A) deducting total withdrawals still outstanding from bank balance 
B) deducting total deposits still outstanding from bank balance 
C) adding total credit card outstanding balance to bank balance 
D) adding bank service charges to bank balance 
A) deducting total withdrawals still outstanding from bank balance 
B) deducting total deposits still outstanding from bank balance 
C) adding total credit card outstanding balance to bank balance 
D) adding bank service charges to bank balance

Question 13

The least expensive method for banks to interact with their customers is:

Accepted Answer

A) through a vendor. 
B) through phone calls. 
C) through the Internet. 
D) through an ATM machine. 
E) through a full-service teller. 
A) through a vendor. 
B) through phone calls. 
C) through the Internet. 
D) through an ATM machine. 
E) through a full-service teller.

Question 14

A bank customer withdraws funds by writing checks from his or her negotiable order of withdrawal (NOW)account and:

Accepted Answer

A) certificate of deposit. 
B) regular checking account. 
C) term insurance deposit. 
D) time deposit. 
E) savings account. 
A) certificate of deposit. 
B) regular checking account. 
C) term insurance deposit. 
D) time deposit. 
E) savings account.

Question 15

Kate tends to issue checks quite often without having sufficient balance in her account.She should look for an account with a(n)____________ facility. ​

Accepted Answer

A) ATM 
B) overdraft protection 
C) trust services 
D) mutual fund management 
A) ATM 
B) overdraft protection 
C) trust services 
D) mutual fund management

Question 16

Which of the following is true of asset management accounts?

Accepted Answer

A) Limited free checking of available balance 
B) Sweeping of excess balances into money market deposit account (MMMF) 
C) Fixed annual fees and account charges on deposit account 
D) Borrowing and investing facility unavailable to accountholders 
E) Deposits are protected by the Securities Investor Protection Corporation (SIP
C)  
A) Limited free checking of available balance 
B) Sweeping of excess balances into money market deposit account (MMMF) 
C) Fixed annual fees and account charges on deposit account 
D) Borrowing and investing facility unavailable to accountholders 
E) Deposits are protected by the Securities Investor Protection Corporation (SIP
C)

Question 17

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 
A) depositor 
B) account 
C) shareholder 
D) bank

Question 18

People who do not have checking accounts often use ____________. ​

Accepted Answer

A) a cashier's check 
B) overdraft protection 
C) a debit card 
D) a checkbook ledger 
A) a cashier's check 
B) overdraft protection 
C) a debit card 
D) a checkbook ledger

Question 19

Interest rates are the lowest on ____________. ​

Accepted Answer

A) savings accounts 
B) regular checking accounts 
C) money market deposit accounts 
D) certificates of deposit 
A) savings accounts 
B) regular checking accounts 
C) money market deposit accounts 
D) certificates of deposit

Question 20

Low interest rates create economic distortions,especially when real,inflation-adjusted interest rates are positive.

Accepted Answer

A) True 
 B)False

Which of the following are protected by the Federal Deposit Insurance Corporation (FDIC)?

Low interest rates ____________.

A check you issued last week has been stolen.You can prevent the amount on the check from being withdrawn from your account by an unauthorized person by:

Liquid assets would include your savings account and your ____________.

You are going on an overseas trip,and you want to carry checks.You should purchase:

Mary has calculated her adjusted balance as $500.She notices that her bank's service charges are $20 for this period.Mary's ending balance in her bank account is _____.

At maturity,a deposit of $6,000 in a certificate of deposit (CD)for 10 years at 3% will be worth: (Select the closest answer.)

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

Credit unions are:

The Federal Deposit Insurance Corporation (FDIC)covers stocks,bonds,and mutual funds purchased at banks.

A certified check is a personal check that a bank certifies to guarantee that funds are available.

In account reconciliation,one of the steps in calculating adjusted bank balance is ____________.

The least expensive method for banks to interact with their customers is:

A bank customer withdraws funds by writing checks from his or her negotiable order of withdrawal (NOW)account and:

Kate tends to issue checks quite often without having sufficient balance in her account.She should look for an account with a(n)____________ facility.

Which of the following is true of asset management accounts?

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

People who do not have checking accounts often use ____________.

Interest rates are the lowest on ____________.

Low interest rates create economic distortions,especially when real,inflation-adjusted interest rates are positive.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 4: Managing Your Cash and Savings

Which of the following are protected by the Federal Deposit Insurance Corporation (FDIC)?

Low interest rates ____________. ​

A check you issued last week has been stolen.You can prevent the amount on the check from being withdrawn from your account by an unauthorized person by:

Liquid assets would include your savings account and your ____________. ​

You are going on an overseas trip,and you want to carry checks.You should purchase:

Mary has calculated her adjusted balance as $500.She notices that her bank's service charges are $20 for this period.Mary's ending balance in her bank account is _____.

At maturity,a deposit of $6,000 in a certificate of deposit (CD)for 10 years at 3% will be worth: (Select the closest answer.)

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

Credit unions are:

The Federal Deposit Insurance Corporation (FDIC)covers stocks,bonds,and mutual funds purchased at banks.

A certified check is a personal check that a bank certifies to guarantee that funds are available.

In account reconciliation,one of the steps in calculating adjusted bank balance is ____________. ​

The least expensive method for banks to interact with their customers is:

A bank customer withdraws funds by writing checks from his or her negotiable order of withdrawal (NOW)account and:

Kate tends to issue checks quite often without having sufficient balance in her account.She should look for an account with a(n)____________ facility. ​

Which of the following is true of asset management accounts?

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

People who do not have checking accounts often use ____________. ​

Interest rates are the lowest on ____________. ​

Low interest rates create economic distortions,especially when real,inflation-adjusted interest rates are positive.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Low interest rates ____________.

Liquid assets would include your savings account and your ____________.

In account reconciliation,one of the steps in calculating adjusted bank balance is ____________.

Kate tends to issue checks quite often without having sufficient balance in her account.She should look for an account with a(n)____________ facility.

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

People who do not have checking accounts often use ____________.

Interest rates are the lowest on ____________.