Question 1

Which of the following doesnot offer deposit services?

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 A

Question 2

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

Accepted Answer

A) 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) 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 D

Question 3

In recent years,membership in credit unions has:

Accepted Answer

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

Question 4

A personal check with guaranteed payment is called a:

Accepted Answer

A) traveler's check. 
B) bank draft. 
C) certified check. 
D) money order. 
E) cashier's check. 
A) traveler's check. 
B) bank draft. 
C) certified check. 
D) money order. 
E) cashier's check.

Question 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which type of organization does not provide home mortgages?

Accepted Answer

A) Federal credit unions 
B) Savings and loan associations 
C) Employee credit unions 
D) Mutual savings banks 
E) Check-cashing outlets 
A) Federal credit unions 
B) Savings and loan associations 
C) Employee credit unions 
D) Mutual savings banks 
E) Check-cashing outlets

Question 8

When preparing a bank reconciliation,interest earned on your checking account is added to the bank statement balance.

Accepted Answer

A) True 
 B)False

Question 9

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 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

In the bank reconciliation process,total fees should be:

Accepted Answer

A) added to the bank statement balance. 
B) subtracted from the bank statement balance. 
C) added to the checkbook balance. 
D) subtracted from the checkbook balance. 
E) ignored. 
A) added to the bank statement balance. 
B) subtracted from the bank statement balance. 
C) added to the checkbook balance. 
D) subtracted from the checkbook balance. 
E) ignored.

Question 12

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 13

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 14

What type of account would be considered the most liquid?

Accepted Answer

A) Certificate of deposit 
B) Regular savings account 
C) Money market account 
D) U.S.savings bond 
E) Share of stock 
A) Certificate of deposit 
B) Regular savings account 
C) Money market account 
D) U.S.savings bond 
E) Share of stock

Question 15

Which one of the following is true for a NOW account?

Accepted Answer

A) It is an interest-earning checking account that requires a minimum balance. 
B) It is an account that charges a fee for each check written and does not require a minimum balance. 
C) It is a non-interest earning account. 
D) All of these are true. 
E) None of these are true. 
A) It is an interest-earning checking account that requires a minimum balance. 
B) It is an account that charges a fee for each check written and does not require a minimum balance. 
C) It is a non-interest earning account. 
D) All of these are true. 
E) None of these are true.

Question 16

A higher rate of return would result from a savings account that had which of the following compounding frequencies?

Accepted Answer

A) Daily 
B) Weekly 
C) Biweekly 
D) Monthly 
E) Yearly 
A) Daily 
B) Weekly 
C) Biweekly 
D) Monthly 
E) Yearly

Question 17

A restrictive endorsement consists of the words "for deposit only."

Accepted Answer

A) True 
 B)False

Question 18

Your bank statement shows a balance of $670.Your checkbook register shows a balance of $462.You earned interest of $2 and had a service charge of $4.There are no outstanding deposits.What is the amount of outstanding checks?

Accepted Answer

A) $210 
B) $208 
C) $180 
D) $12 
E) $6 
A) $210 
B) $208 
C) $180 
D) $12 
E) $6

Question 19

Which one of the following financial service providers should be avoided,because the interest rates charged on loans can be over 100% a year?

Accepted Answer

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

Question 20

Based on the following information,what amount would be subtracted from the bank statement 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

Which of the following doesnot offer deposit services?

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

In recent years,membership in credit unions has:

A personal check with guaranteed payment is called a:

The purpose of a "special endorsement" is to:

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

Which type of organization does not provide home mortgages?

When preparing a bank reconciliation,interest earned on your checking account is added to the bank statement balance.

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

Which of the following represent the use of credit?

In the bank reconciliation process,total fees should be:

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

The Truth in Savings law requires that financial institutions:

What type of account would be considered the most liquid?

Which one of the following is true for a NOW account?

A higher rate of return would result from a savings account that had which of the following compounding frequencies?

A restrictive endorsement consists of the words "for deposit only."

Your bank statement shows a balance of $670.Your checkbook register shows a balance of $462.You earned interest of $2 and had a service charge of $4.There are no outstanding deposits.What is the amount of outstanding checks?

Which one of the following financial service providers should be avoided,because the interest rates charged on loans can be over 100% a year?

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

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 Stock

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 of the following doesnot offer deposit services?

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

In recent years,membership in credit unions has:

A personal check with guaranteed payment is called a:

The purpose of a "special endorsement" is to:

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

Which type of organization does not provide home mortgages?

When preparing a bank reconciliation,interest earned on your checking account is added to the bank statement balance.

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

Which of the following represent the use of credit?

In the bank reconciliation process,total fees should be:

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

The Truth in Savings law requires that financial institutions:

What type of account would be considered the most liquid?

Which one of the following is true for a NOW account?

A higher rate of return would result from a savings account that had which of the following compounding frequencies?

A restrictive endorsement consists of the words "for deposit only."

Your bank statement shows a balance of $670.Your checkbook register shows a balance of $462.You earned interest of $2 and had a service charge of $4.There are no outstanding deposits.What is the amount of outstanding checks?

Which one of the following financial service providers should be avoided,because the interest rates charged on loans can be over 100% a year?

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

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 Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters