Question 1

A certificate of deposit is also known as a demand deposit.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements regarding debit and credit card liability is correct?

Accepted Answer

A) A credit card carries more risk of loss to the cardholder. 
B) A debit card carries more risk of loss to the cardholder. 
C) There is no cardholder liability if either type of card is lost. 
D) The Federal Government insures losses on credit but not debit cards. 
E) The Federal Government insures losses on debit but not credit cards. 
A) A credit card carries more risk of loss to the cardholder. 
B) A debit card carries more risk of loss to the cardholder. 
C) There is no cardholder liability if either type of card is lost. 
D) The Federal Government insures losses on credit but not debit cards. 
E) The Federal Government insures losses on debit but not credit cards.

Question 3

When preparing a bank reconciliation,outstanding checks 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 until they have cleared. 
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 until they have cleared.

Question 4

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

Accepted Answer

The major types of financial institution

Question 5

Which of the following types of financial institutions provide Federal Deposit Insurance 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 6

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

Question 7

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 8

An all-purpose account offered by investment brokers that provides several services is a:

Accepted Answer

A) NOW account. 
B) asset management account. 
C) EFT account. 
D) mutual fund. 
E) money market account. 
A) NOW account. 
B) asset management account. 
C) EFT account. 
D) mutual fund. 
E) money market account.

Question 9

An estimated _____ people in the U.S.are "unbanked",using a variety of alternative services rather than having a bank account.

Accepted Answer

A) 1 million 
B) 6 million 
C) 12 million 
D) 17 million 
E) 25 million 
A) 1 million 
B) 6 million 
C) 12 million 
D) 17 million 
E) 25 million

Question 10

The rate of return on a savings account is also referred to as:

Accepted Answer

A) liquidity. 
B) compounding. 
C) yield. 
D) opportunity cost. 
E) asset turnover. 
A) liquidity. 
B) compounding. 
C) yield. 
D) opportunity cost. 
E) asset turnover.

Question 11

This type of financial institution is known to frequently offer lower fees and lower loan rates:

Accepted Answer

A) Commercial bank 
B) Savings and loans association 
C) Mutual savings bank 
D) Credit union 
E) Investment companies 
A) Commercial bank 
B) Savings and loans association 
C) Mutual savings bank 
D) Credit union 
E) Investment companies

Question 12

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 13

A " no-fee" checking account that requires a non-interest-earning minimum balance of $500 has an opportunity cost of lost interest earnings.

Accepted Answer

A) True 
 B)False

Question 14

Joan Zemke expects interest rates to decline over the next few months.To maximize her long-term earnings she should use a:

Accepted Answer

A) regular savings account. 
B) interest-bearing checking account. 
C) five-year certificate of deposit. 
D) money market account. 
E) money market fund. 
A) regular savings account. 
B) interest-bearing checking account. 
C) five-year certificate of deposit. 
D) money market account. 
E) money market fund.

Question 15

Nate Rogers deposited $5,000 in a 3-year bank certificate of deposit which pays six percent interest.What type of financial service is Nate using?

Accepted Answer

A) Payment service 
B) Savings service 
C) Borrowing service 
D) Trust service 
E) Budget counseling 
A) Payment service 
B) Savings service 
C) Borrowing service 
D) Trust service 
E) Budget counseling

Question 16

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 notcovered 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 17

A debit card deducts the amount of purchases from your checking account by:

Accepted Answer

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

Question 18

A $200 savings account that earns $13 interest in a year has a yield of _______ percent.

Accepted Answer

A) 6.00 
B) 13.00 
C) 7.50 
D) 11.25 
E) 6.50 
A) 6.00 
B) 13.00 
C) 7.50 
D) 11.25 
E) 6.50

Question 19

Which of the following is a user-owned,nonprofit,cooperative financial institution?

Accepted Answer

A) Life insurance company 
B) Investment company 
C) Mortgage company 
D) Pawnshop 
E) Credit union 
A) Life insurance company 
B) Investment company 
C) Mortgage company 
D) Pawnshop 
E) Credit union

Question 20

David Wynn gets an auto loan from his credit union for $10,000.David will make monthly payments over the next four years to repay the loan.What type of financial service is David using?

Accepted Answer

A) Payment service 
B) Savings service 
C) Credit service 
D) Trust service 
E) Asset management 
A) Payment service 
B) Savings service 
C) Credit service 
D) Trust service 
E) Asset management

A certificate of deposit is also known as a demand deposit.

Which of the following statements regarding debit and credit card liability is correct?

When preparing a bank reconciliation,outstanding checks should be:

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

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

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

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?

An all-purpose account offered by investment brokers that provides several services is a:

An estimated _____ people in the U.S.are "unbanked",using a variety of alternative services rather than having a bank account.

The rate of return on a savings account is also referred to as:

This type of financial institution is known to frequently offer lower fees and lower loan rates:

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

A " no-fee" checking account that requires a non-interest-earning minimum balance of $500 has an opportunity cost of lost interest earnings.

Joan Zemke expects interest rates to decline over the next few months.To maximize her long-term earnings she should use a:

Nate Rogers deposited $5,000 in a 3-year bank certificate of deposit which pays six percent interest.What type of financial service is Nate using?

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 notcovered by FDIC insurance?

A debit card deducts the amount of purchases from your checking account by:

A $200 savings account that earns $13 interest in a year has a yield of _______ percent.

Which of the following is a user-owned,nonprofit,cooperative financial institution?

David Wynn gets an auto loan from his credit union for $10,000.David will make monthly payments over the next four years to repay the loan.What type of financial service is David using?

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

A certificate of deposit is also known as a demand deposit.

Which of the following statements regarding debit and credit card liability is correct?

When preparing a bank reconciliation,outstanding checks should be:

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

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

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

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?

An all-purpose account offered by investment brokers that provides several services is a:

An estimated _____ people in the U.S.are "unbanked",using a variety of alternative services rather than having a bank account.

The rate of return on a savings account is also referred to as:

This type of financial institution is known to frequently offer lower fees and lower loan rates:

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

A " no-fee" checking account that requires a non-interest-earning minimum balance of $500 has an opportunity cost of lost interest earnings.

Joan Zemke expects interest rates to decline over the next few months.To maximize her long-term earnings she should use a:

Nate Rogers deposited $5,000 in a 3-year bank certificate of deposit which pays six percent interest.What type of financial service is Nate using?

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 notcovered by FDIC insurance?

A debit card deducts the amount of purchases from your checking account by:

A $200 savings account that earns $13 interest in a year has a yield of _______ percent.

Which of the following is a user-owned,nonprofit,cooperative financial institution?

David Wynn gets an auto loan from his credit union for $10,000.David will make monthly payments over the next four years to repay the loan.What type of financial service is David using?

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