Question 1

Series EE U.S.Savings Bonds can be purchased:

Accepted Answer

A) for less than $25. 
B) for any amount greater than $25. 
C) for less than face value. 
D) in increments of $25 only. 
E) in whole dollar amounts only. 
A) for less than $25. 
B) for any amount greater than $25. 
C) for less than face value. 
D) in increments of $25 only. 
E) in whole dollar amounts only.

Question 2

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

Accepted Answer

A) When a bond is redeemed, the earned interest is always exempt from federal income taxes. 
B) Federal income tax on earnings is not due until the bonds are redeemed. 
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 redeemed, the earned interest is always exempt from federal income taxes. 
B) Federal income tax on earnings is not due until the bonds are redeemed. 
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 3

A savings account at a credit union is called a ____________ account.

Accepted Answer

A) share 
B) NOW 
C) club 
D) certificate 
E) money market 
A) share 
B) NOW 
C) club 
D) certificate 
E) money market

Question 4

You are planning to purchase a house in five years and intend to save a fixed amount of money each month for a down payment.How will you invest your savings and what are important considerations in selecting an investment vehicle?

Accepted Answer

Consider savings opportunities

Question 5

Demand deposits are another term for:

Accepted Answer

A) savings accounts. 
B) savings bonds. 
C) checking accounts. 
D) certificates of deposit. 
E) investment accounts. 
A) savings accounts. 
B) savings bonds. 
C) checking accounts. 
D) certificates of deposit. 
E) investment accounts.

Question 6

The Federal Deposit Insurance Corporation provides deposit insurance for:

Accepted Answer

A) credit unions and mutual savings banks. 
B) commercial banks and savings and loan associations. 
C) investment companies and finance companies. 
D) insurance companies and credit unions. 
E) commercial banks and credit unions. 
A) credit unions and mutual savings banks. 
B) commercial banks and savings and loan associations. 
C) investment companies and finance companies. 
D) insurance companies and credit unions. 
E) commercial banks and credit unions.

Question 7

The most frequent users of payday loans are workers who have become trapped by debts or poor financial decisions.

Accepted Answer

A) True 
 B)False

Question 8

What is the term used to refer to the cost of borrowing for large U.S.corporations?

Accepted Answer

A) Prime rate 
B) Discount rate 
C) Corporate bond rate 
D) Treasury bond rate 
E) T-bill rate 
A) Prime rate 
B) Discount rate 
C) Corporate bond rate 
D) Treasury bond rate 
E) T-bill rate

Question 9

Which one of the following will help to avoid identity theft?

Accepted Answer

A) Put your social security and driver's license numbers on checks. 
B) Put your full name on checks. 
C) Put your full account number on checks when paying a bill. 
D) Use passwords involving both letters and numbers. 
E) Check your credit report once every three years. 
A) Put your social security and driver's license numbers on checks. 
B) Put your full name on checks. 
C) Put your full account number on checks when paying a bill. 
D) Use passwords involving both letters and numbers. 
E) Check your credit report once every three years.

Question 10

Tim Gleason has set up a legal agreement that allows the First State Bank of Orlando to manage funds set aside for his daughter's college education.What type of financial service is Tim using?

Accepted Answer

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

Question 11

Which law requires banks and other financial institutions to disclose fees,the interest rate,the annual percentage yield,and the other terms and conditions on savings account plans?

Accepted Answer

A) Truth in Savings Law 
B) Truth in Lending Law 
C) Expedited Funds Availability Act 
D) Equal Employment Opportunity Act 
E) Identity Theft Protection Act 
A) Truth in Savings Law 
B) Truth in Lending Law 
C) Expedited Funds Availability Act 
D) Equal Employment Opportunity Act 
E) Identity Theft Protection Act

Question 12

A pawnshop with a monthly interest rate of 2.75 percent would have an annual interest rate of ____ percent.Ignore compounding.

Accepted Answer

A) 33.00 
B) 27.50 
C) 20.00 
D) 5.50 
E) 2.75 
A) 33.00 
B) 27.50 
C) 20.00 
D) 5.50 
E) 2.75

Question 13

Prepaid debit cards are used for:

Accepted Answer

A) Social security benefits. 
B) School lunches. 
C) Highway tolls. 
D) Telephone service. 
E) All of these. 
A) Social security benefits. 
B) School lunches. 
C) Highway tolls. 
D) Telephone service. 
E) All of these.

Question 14

A limit on the amount you must keep on deposit in order to earn interest or avoid a service charge is an example of a:

Accepted Answer

A) holding period. 
B) restriction. 
C) overdraft fee. 
D) share draft. 
E) certified deposit fee. 
A) holding period. 
B) restriction. 
C) overdraft fee. 
D) share draft. 
E) certified deposit fee.

Question 15

Which of the following is an effective strategy in times of falling interest rates?

Accepted Answer

A) Use long-term loans to take advantage of current low rates. 
B) Use short-term loans to take advantage of lower rates when you refinance the loans. 
C) Select short-term savings instruments to take advantage of higher rates when they mature. 
D) Select short-term savings instruments to lock-in earnings at current high rates. 
E) Select long-term savings instruments to lock-in earnings at current low rates. 
A) Use long-term loans to take advantage of current low rates. 
B) Use short-term loans to take advantage of lower rates when you refinance the loans. 
C) Select short-term savings instruments to take advantage of higher rates when they mature. 
D) Select short-term savings instruments to lock-in earnings at current high rates. 
E) Select long-term savings instruments to lock-in earnings at current low rates.

Question 16

A savings account earns 4 percent.If the saver is in a 28 percent tax bracket,the after-tax savings rate of return would be ____percent.

Accepted Answer

A) 28.00 
B) 16.72 
C) 4.00 
D) 2.88 
E) 1.12 
A) 28.00 
B) 16.72 
C) 4.00 
D) 2.88 
E) 1.12

Question 17

Describe mobile transfer apps and how they work.

Accepted Answer

Apps for mobile payment systems are avai

Question 18

Which one of the following is not true for PayNearMe transactions?

Accepted Answer

A) It is used by people without a credit or debit card. 
B) It is used for online buying. 
C) It allows buyers to make a purchase and then pay cash at a local store. 
D) The customer does not receive a receipt. 
E) The seller is notified of the payment. 
A) It is used by people without a credit or debit card. 
B) It is used for online buying. 
C) It allows buyers to make a purchase and then pay cash at a local store. 
D) The customer does not receive a receipt. 
E) The seller is notified of the payment.

Question 19

Demand deposits are another term for checking accounts.

Accepted Answer

A) True 
 B)False

Question 20

Which is a CD that offers a higher rate for every six months you are invested?

Accepted Answer

A) Bump-up 
B) Indexed 
C) Callable 
D) Global 
E) Promotional 
A) Bump-up 
B) Indexed 
C) Callable 
D) Global 
E) Promotional

Series EE U.S.Savings Bonds can be purchased:

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

A savings account at a credit union is called a ____________ account.

You are planning to purchase a house in five years and intend to save a fixed amount of money each month for a down payment.How will you invest your savings and what are important considerations in selecting an investment vehicle?

Demand deposits are another term for:

The Federal Deposit Insurance Corporation provides deposit insurance for:

The most frequent users of payday loans are workers who have become trapped by debts or poor financial decisions.

What is the term used to refer to the cost of borrowing for large U.S.corporations?

Which one of the following will help to avoid identity theft?

Tim Gleason has set up a legal agreement that allows the First State Bank of Orlando to manage funds set aside for his daughter's college education.What type of financial service is Tim using?

Which law requires banks and other financial institutions to disclose fees,the interest rate,the annual percentage yield,and the other terms and conditions on savings account plans?

A pawnshop with a monthly interest rate of 2.75 percent would have an annual interest rate of ____ percent.Ignore compounding.

Prepaid debit cards are used for:

A limit on the amount you must keep on deposit in order to earn interest or avoid a service charge is an example of a:

Which of the following is an effective strategy in times of falling interest rates?

A savings account earns 4 percent.If the saver is in a 28 percent tax bracket,the after-tax savings rate of return would be ____percent.

Describe mobile transfer apps and how they work.

Which one of the following is not true for PayNearMe transactions?

Demand deposits are another term for checking accounts.

Which is a CD that offers a higher rate for every six months you are invested?

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

Series EE U.S.Savings Bonds can be purchased:

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

A savings account at a credit union is called a ____________ account.

You are planning to purchase a house in five years and intend to save a fixed amount of money each month for a down payment.How will you invest your savings and what are important considerations in selecting an investment vehicle?

Demand deposits are another term for:

The Federal Deposit Insurance Corporation provides deposit insurance for:

The most frequent users of payday loans are workers who have become trapped by debts or poor financial decisions.

What is the term used to refer to the cost of borrowing for large U.S.corporations?

Which one of the following will help to avoid identity theft?

Tim Gleason has set up a legal agreement that allows the First State Bank of Orlando to manage funds set aside for his daughter's college education.What type of financial service is Tim using?

Which law requires banks and other financial institutions to disclose fees,the interest rate,the annual percentage yield,and the other terms and conditions on savings account plans?

A pawnshop with a monthly interest rate of 2.75 percent would have an annual interest rate of ____ percent.Ignore compounding.

Prepaid debit cards are used for:

A limit on the amount you must keep on deposit in order to earn interest or avoid a service charge is an example of a:

Which of the following is an effective strategy in times of falling interest rates?

A savings account earns 4 percent.If the saver is in a 28 percent tax bracket,the after-tax savings rate of return would be ____percent.

Describe mobile transfer apps and how they work.

Which one of the following is not true for PayNearMe transactions?

Demand deposits are another term for checking accounts.

Which is a CD that offers a higher rate for every six months you are invested?

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