Question 1

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

Accepted Answer

A) interest-bearing checking accounts. 
B) low-cost personal loans. 
C) flexible-rate loans. 
D) credit cards. 
E) variable-rate savings plans. 
A) interest-bearing checking accounts. 
B) low-cost personal loans. 
C) flexible-rate loans. 
D) credit cards. 
E) variable-rate savings plans.

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

A certificate of deposit usually has:

Accepted Answer

A) high interest-rate risk. 
B) low safety for savers. 
C) limited liquidity. 
D) a variable rate of return. 
E) no minimum deposit amount. 
A) high interest-rate risk. 
B) low safety for savers. 
C) limited liquidity. 
D) a variable rate of return. 
E) no minimum deposit amount.

Question 4

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

Accepted Answer

A) prime 
B) discount 
C) mortgage 
D) treasury bond 
E) corporate bond 
A) prime 
B) discount 
C) mortgage 
D) treasury bond 
E) corporate bond

Question 5

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

Accepted Answer

The answer of What are the main types of financial...

Question 6

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) 7.00 
D) 11.25 
E) 6.50 
A) 6.00 
B) 13.00 
C) 7.00 
D) 11.25 
E) 6.50

Question 7

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

Accepted Answer

A) When a bond is cashed,the earned interest is exempt from federal income taxes. 
B) Interest is not taxed by the federal government until the bond is cashed. 
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 cashed,the earned interest is exempt from federal income taxes. 
B) Interest is not taxed by the federal government until the bond is cashed. 
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 8

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

Accepted Answer

A) Certificate of deposit. 
B) Passbook savings account. 
C) Money market account. 
D) Money market funD. 
E) CD. 
A) Certificate of deposit. 
B) Passbook savings account. 
C) Money market account. 
D) Money market funD. 
E) CD.

Question 9

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

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

In the bank reconciliation process,service fees 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. 
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.

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

An all-purpose account that provides several services is a(n):

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 14

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

Question 15

Nate Rogers deposited $5,000 in a 3-year bank CD 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) asset management 
A) payment service 
B) savings service 
C) borrowing service 
D) trust service 
E) asset management

Question 16

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 17

Which of the following is a deposit 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 18

A "free" checking account with a minimum balance of $500 has an opportunity cost of lost interest.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

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

A trust has the purpose of:

A certificate of deposit usually has:

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

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

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

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

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

The major service offered by investment companies is:

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?

In the bank reconciliation process,service fees should be:

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

An all-purpose account that provides several services is a(n):

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?

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

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

Which of the following is a deposit institution?

A "free" checking account with a minimum balance of $500 has an opportunity cost of lost interest.

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

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

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

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

A trust has the purpose of:

A certificate of deposit usually has:

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

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

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

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

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

The major service offered by investment companies is:

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?

In the bank reconciliation process,service fees should be:

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

An all-purpose account that provides several services is a(n):

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?

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

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

Which of the following is a deposit institution?

A "free" checking account with a minimum balance of $500 has an opportunity cost of lost interest.

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

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

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