Question 1

Which of the following is a way to reduce ATM surcharges?

Accepted Answer

A) Withdraw larger amounts rather than making several smaller withdrawals. 
B) Withdraw the minimum amount each time you withdraw. 
C) Withdraw from ATMs based on their proximity to your home or place of business regardless of which bank services the ATM. 
D) Withdraw from ATMs that can be used by customers from many different banks. 
E) Make a separate withdrawal for each purchase to maintain a record of your spending. 
A) Withdraw larger amounts rather than making several smaller withdrawals. 
B) Withdraw the minimum amount each time you withdraw. 
C) Withdraw from ATMs based on their proximity to your home or place of business regardless of which bank services the ATM. 
D) Withdraw from ATMs that can be used by customers from many different banks. 
E) Make a separate withdrawal for each purchase to maintain a record of your spending.

Question 2

A trust has the purpose of:

Accepted Answer

A) solving a person's financial problems. 
B) obtaining low-interest loans. 
C) handling daily money management activities. 
D) managing the assets of a person. 
E) improving a person's budgeting skills. 
A) solving a person's financial problems. 
B) obtaining low-interest loans. 
C) handling daily money management activities. 
D) managing the assets of a person. 
E) improving a person's budgeting skills.

Question 3

What is the rate that banks charge large corporations 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 4

Neil Guest writes a check to pay for day care for his son.What type of financial service is Neil using?

Accepted Answer

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

Question 5

Evan Nolan is a college graduate who has just landed a great job.He feels it is time for him to start saving a portion of his earnings.What factors would you recommend he consider when evaluating and comparing different savings plans?

Accepted Answer

When evaluating a savings plan

Question 6

An advantage credit unions may have over other financial institutions is:

Accepted Answer

A) interest-bearing checking accounts. 
B) lower loan rates. 
C) flexible-rate loans. 
D) credit cards. 
E) variable-rate savings plans. 
A) interest-bearing checking accounts. 
B) lower loan rates. 
C) flexible-rate loans. 
D) credit cards. 
E) variable-rate savings plans.

Question 7

A certificate of deposit usually has:

Accepted Answer

A) a high interest-rate risk. 
B) a high safety risk for savers. 
C) a penalty for early withdrawal. 
D) a variable rate of return. 
E) no minimum deposit amount. 
A) a high interest-rate risk. 
B) a high safety risk for savers. 
C) a penalty for early withdrawal. 
D) a variable rate of return. 
E) no minimum deposit amount.

Question 8

What is the rate an individual will pay to borrow for the purchase of a new home 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 9

When interest rates are rising,a person would be best served by:

Accepted Answer

A) short-term savings instruments. 
B) long-term savings instruments. 
C) short-term loans. 
D) variable-rate loans. 
E) certificates of deposit. 
A) short-term savings instruments. 
B) long-term savings instruments. 
C) short-term loans. 
D) variable-rate loans. 
E) certificates of deposit.

Question 10

A person borrows $200 from a payday loan company,and pays $10 interest for two weeks.This would result in an annual interest rate of approximately ___ percent.Ignore compounding.

Accepted Answer

A) 260 
B) 130 
C) 40 
D) 20 
E) 5 
A) 260 
B) 130 
C) 40 
D) 20 
E) 5

Question 11

A saver will usually receive the highest earnings with which one of the following types of savings plans?

Accepted Answer

A) Certificate of deposit 
B) Debit account 
C) Regular savings account 
D) Share account 
E) Credit account 
A) Certificate of deposit 
B) Debit account 
C) Regular savings account 
D) Share account 
E) Credit account

Question 12

The more frequent the compounding,the less a person will earn on a savings account.

Accepted Answer

A) True 
 B)False

Question 13

A common service offered by investment companies is:

Accepted Answer

A) interest-bearing checking accounts. 
B) variable-rate loans. 
C) credit card accounts. 
D) savings bonds. 
E) money market funds. 
A) interest-bearing checking accounts. 
B) variable-rate loans. 
C) credit card accounts. 
D) savings bonds. 
E) money market funds.

Question 14

The Expedited Funds Availability Act requires that funds be available to depositors:

Accepted Answer

A) within 5 business days for local checks. 
B) within 2 business days for local checks. 
C) within 2 business days for both local checks and out-of-town checks. 
D) within 2 business days for out-of-town checks. 
E) immediately upon deposit. 
A) within 5 business days for local checks. 
B) within 2 business days for local checks. 
C) within 2 business days for both local checks and out-of-town checks. 
D) within 2 business days for out-of-town checks. 
E) immediately upon deposit.

Question 15

What is the term used to refer to the yield on a long term bond issued by the U.S.government?

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 16

Which of the following institutions is organized primarily to provide loans to purchase homes?

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 17

The profits from a mutual savings bank go to the:

Accepted Answer

A) creditors. 
B) loan applicants. 
C) stockholders. 
D) depositors. 
E) community in which it operates. 
A) creditors. 
B) loan applicants. 
C) stockholders. 
D) depositors. 
E) community in which it operates.

Question 18

Which CD starts with a higher rate,has a long time to maturity,and can be retired by the bank after a set time period?

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

Sue deposited $1,000 in an account paying 3 percent interest.The inflation rate is 5 percent.What is the buying power of the account after one year?

Accepted Answer

A) $1,050 
B) $1,030 
C) $1,000 
D) $980 
E) $950 
A) $1,050 
B) $1,030 
C) $1,000 
D) $980 
E) $950

Which of the following is a way to reduce ATM surcharges?

A trust has the purpose of:

What is the rate that banks charge large corporations for loans called?

Neil Guest writes a check to pay for day care for his son.What type of financial service is Neil using?

Evan Nolan is a college graduate who has just landed a great job.He feels it is time for him to start saving a portion of his earnings.What factors would you recommend he consider when evaluating and comparing different savings plans?

An advantage credit unions may have over other financial institutions is:

A certificate of deposit usually has:

What is the rate an individual will pay to borrow for the purchase of a new home called?

When interest rates are rising,a person would be best served by:

A person borrows $200 from a payday loan company,and pays $10 interest for two weeks.This would result in an annual interest rate of approximately ___ percent.Ignore compounding.

A saver will usually receive the highest earnings with which one of the following types of savings plans?

The more frequent the compounding,the less a person will earn on a savings account.

A common service offered by investment companies is:

The Expedited Funds Availability Act requires that funds be available to depositors:

What is the term used to refer to the yield on a long term bond issued by the U.S.government?

Which of the following institutions is organized primarily to provide loans to purchase homes?

The profits from a mutual savings bank go to the:

Which CD starts with a higher rate,has a long time to maturity,and can be retired by the bank after a set time period?

Sue deposited $1,000 in an account paying 3 percent interest.The inflation rate is 5 percent.What is the buying power of the account after one year?

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 is a way to reduce ATM surcharges?

A trust has the purpose of:

What is the rate that banks charge large corporations for loans called?

Neil Guest writes a check to pay for day care for his son.What type of financial service is Neil using?

Evan Nolan is a college graduate who has just landed a great job.He feels it is time for him to start saving a portion of his earnings.What factors would you recommend he consider when evaluating and comparing different savings plans?

An advantage credit unions may have over other financial institutions is:

A certificate of deposit usually has:

What is the rate an individual will pay to borrow for the purchase of a new home called?

When interest rates are rising,a person would be best served by:

A person borrows $200 from a payday loan company,and pays $10 interest for two weeks.This would result in an annual interest rate of approximately ___ percent.Ignore compounding.

A saver will usually receive the highest earnings with which one of the following types of savings plans?

The more frequent the compounding,the less a person will earn on a savings account.

A common service offered by investment companies is:

The Expedited Funds Availability Act requires that funds be available to depositors:

What is the term used to refer to the yield on a long term bond issued by the U.S.government?

Which of the following institutions is organized primarily to provide loans to purchase homes?

The profits from a mutual savings bank go to the:

Which CD starts with a higher rate,has a long time to maturity,and can be retired by the bank after a set time period?

Sue deposited $1,000 in an account paying 3 percent interest.The inflation rate is 5 percent.What is the buying power of the account after one year?

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