Question 1

Checking accounts are frequently referred to as ____________ deposits.

Accepted Answer

A) common 
B) time 
C) current 
D) loan 
E) demand 
A) common 
B) time 
C) current 
D) loan 
E) demand

Question 2

Purchasing a new CD upon maturity of the current CD is commonly referred to as:

Accepted Answer

A) creating a CD portfolio. 
B) rolling over. 
C) refinancing. 
D) calling a CD. 
E) bumping up. 
A) creating a CD portfolio. 
B) rolling over. 
C) refinancing. 
D) calling a CD. 
E) bumping up.

Question 3

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 4

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

Accepted Answer

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

Question 5

The storage of funds for future use is a purpose of ____________,which include savings accounts and certificates of deposit.

Accepted Answer

A) trust 
B) borrowing 
C) credit card 
D) time deposits 
E) cash checking 
A) trust 
B) borrowing 
C) credit card 
D) time deposits 
E) cash checking

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Using a "debit card" to make purchases means you are spending your own funds.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a drawback of a money market fund from an investment company?

Accepted Answer

A) Penalty if money is withdrawn early 
B) Lower rate of interest if redeemed within the first five years 
C) Minimum required holding period 
D) Not covered by FDIC insurance 
E) Taxed at a higher rate than other investments 
A) Penalty if money is withdrawn early 
B) Lower rate of interest if redeemed within the first five years 
C) Minimum required holding period 
D) Not covered by FDIC insurance 
E) Taxed at a higher rate than other investments

Question 9

An asset management account typically offers the following service:

Accepted Answer

A) online banking. 
B) checking. 
C) borrowing. 
D) investing. 
E) All of these 
A) online banking. 
B) checking. 
C) borrowing. 
D) investing. 
E) All of these

Question 10

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

Accepted Answer

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

Question 11

Savings compounded ____________ would have the highest effective yield.

Accepted Answer

A) daily 
B) annually 
C) semi-annually 
D) monthly 
E) weekly 
A) daily 
B) annually 
C) semi-annually 
D) monthly 
E) weekly

Question 12

What is the rate that the Federal Reserve banks charge financial institutions 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 13

Determine the rate of return 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 14

Which of the following is organized as a corporation and owned by stockholders?

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 15

Josh earned $120 on $1500 invested in a high yield money market account.He is taxed at 28% of his earnings.What is the effective yield on his investment?

Accepted Answer

Josh earned 8% ($120/$1500)on his high y

Question 16

What type of account would you expect to provide the poorest yield?

Accepted Answer

A) Certificate of deposit earning 3% compounded semiannually 
B) Savings account earning 3% compounded annually 
C) Money market account earning 3% compounded monthly 
D) Money market fund earning 3% compounded monthly 
E) Savings account earning 3% compounded semiannually 
A) Certificate of deposit earning 3% compounded semiannually 
B) Savings account earning 3% compounded annually 
C) Money market account earning 3% compounded monthly 
D) Money market fund earning 3% compounded monthly 
E) Savings account earning 3% compounded semiannually

Question 17

This type of savings plan is usually considered to be very liquid:

Accepted Answer

A) Bonds 
B) Stocks 
C) Certificate of deposit 
D) Regular savings account 
E) All of these 
A) Bonds 
B) Stocks 
C) Certificate of deposit 
D) Regular savings account 
E) All of these

Question 18

Which CD pays earnings based on the stock market?

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 19

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 20

Time deposits are another name for:

Accepted Answer

A) checking accounts. 
B) loans and charge accounts. 
C) savings accounts. 
D) government securities. 
E) profits earned by a financial institution. 
A) checking accounts. 
B) loans and charge accounts. 
C) savings accounts. 
D) government securities. 
E) profits earned by a financial institution.

Checking accounts are frequently referred to as ____________ deposits.

Purchasing a new CD upon maturity of the current CD is commonly referred to as:

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

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

The storage of funds for future use is a purpose of ____________,which include savings accounts and certificates of deposit.

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

Using a "debit card" to make purchases means you are spending your own funds.

Which of the following is a drawback of a money market fund from an investment company?

An asset management account typically offers the following service:

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

Savings compounded ____________ would have the highest effective yield.

What is the rate that the Federal Reserve banks charge financial institutions for loans called?

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

Which of the following is organized as a corporation and owned by stockholders?

Josh earned $120 on $1500 invested in a high yield money market account.He is taxed at 28% of his earnings.What is the effective yield on his investment?

What type of account would you expect to provide the poorest yield?

This type of savings plan is usually considered to be very liquid:

Which CD pays earnings based on the stock market?

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

Time deposits are another name for:

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

Checking accounts are frequently referred to as ____________ deposits.

Purchasing a new CD upon maturity of the current CD is commonly referred to as:

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

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

The storage of funds for future use is a purpose of ____________,which include savings accounts and certificates of deposit.

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

Using a "debit card" to make purchases means you are spending your own funds.

Which of the following is a drawback of a money market fund from an investment company?

An asset management account typically offers the following service:

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

Savings compounded ____________ would have the highest effective yield.

What is the rate that the Federal Reserve banks charge financial institutions for loans called?

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

Which of the following is organized as a corporation and owned by stockholders?

Josh earned $120 on $1500 invested in a high yield money market account.He is taxed at 28% of his earnings.What is the effective yield on his investment?

What type of account would you expect to provide the poorest yield?

This type of savings plan is usually considered to be very liquid:

Which CD pays earnings based on the stock market?

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

Time deposits are another name for:

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