Question 1

A certificate of deposit is usually considered to be very liquid.

Accepted Answer

A) True 
 B)False

Question 2

A restrictive endorsement will usually include the words "for deposit only."

Accepted Answer

A) True 
 B)False

Question 3

The money market fund offered by investment companies is a relatively liquid financial service.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Which of the following is not a deposit institution?

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

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

Demand deposits are another term for checking accounts.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following types of financial institutions provide Federal Deposit Insurance (FDIC)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 10

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 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

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 13

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 14

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 15

All-in-one accounts may be used by financial institutions to simplify the maze of financial services and to attract customers.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) passbook 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) passbook 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

Question 17

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 18

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

Question 19

The face value of a Series EE U.S.Savings Bond refers to the:

Accepted Answer

A) original purchase price 
B) redemption value at maturity 
C) effective yield of the bond 
D) monthly interest accrual amount 
E) taxable portion of the accrued interest 
A) original purchase price 
B) redemption value at maturity 
C) effective yield of the bond 
D) monthly interest accrual amount 
E) taxable portion of the accrued interest

Question 20

What is the term used to refer to the yield on a long term bond issued by the federal 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

A certificate of deposit is usually considered to be very liquid.

A restrictive endorsement will usually include the words "for deposit only."

The money market fund offered by investment companies is a relatively liquid financial service.

Which of the following represent the use of credit?

Which of the following is not a deposit institution?

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

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

Demand deposits are another term for checking accounts.

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

A personal check with guaranteed payment is called a:

Savings compounded ____________ would have the highest effective yield.

The profits from a mutual savings bank go to the:

Which CD pays earnings based on the stock market?

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?

All-in-one accounts may be used by financial institutions to simplify the maze of financial services and to attract customers.

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

A endorsement is especially useful when you are depositing checks.

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

The face value of a Series EE U.S.Savings Bond refers to the:

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

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 Stocks

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 usually considered to be very liquid.

A restrictive endorsement will usually include the words "for deposit only."

The money market fund offered by investment companies is a relatively liquid financial service.

Which of the following represent the use of credit?

Which of the following is not a deposit institution?

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

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

Demand deposits are another term for checking accounts.

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

A personal check with guaranteed payment is called a:

Savings compounded ____________ would have the highest effective yield.

The profits from a mutual savings bank go to the:

Which CD pays earnings based on the stock market?

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?

All-in-one accounts may be used by financial institutions to simplify the maze of financial services and to attract customers.

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

A endorsement is especially useful when you are depositing checks.

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

The face value of a Series EE U.S.Savings Bond refers to the:

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

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 Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters