Question 1

List three types of nondeposit institutions.

Accepted Answer

The following are all nondepos

Question 2

Define two of the following:
a.Time deposit
b.Demand deposit
c.Trust
d.Cash management account

Accepted Answer

Definitions follow:
a.Time deposit-provi

Question 3

Neil invested $10,000 in a certificate of deposit earning 9% per year.Unfortunately,he needed to withdraw it before the maturity date.If the penalty was two months of interest,what was his total penalty?

Accepted Answer

A)  $0 
B)  $9 
C)  $75 
D)  $150 
E)  $900 
A)  $0 
B)  $9 
C)  $75 
D)  $150 
E)  $900

Question 4

Which of these two checking accounts is a better deal?
 Why?
a.A regular checking account with a monthly fee of $10 when the balance is lower than $300.
b.An interest-bearing checking account (paying 1%)with a monthly charge of $5 when the balance is lower than $100.

Accepted Answer

The interest-bearing account has a lower

Question 5

I bonds earn interest based on a fixed rate plus inflation.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is correct about inflation?

Accepted Answer

A)  If inflation is 7% and your rate of return in your savings account is 4%, you will experience an overall gain in buying power. 
B)  As inflation rates increase, interest rates offered to savers decrease. 
C)  Inflation does not affect interest rates for savings accounts. 
D)  In order to increase buying power, you need to earn a rate higher than the rate of inflation. 
E)  If you earn 5% and inflation is 10%, your buying power will increase. 
A)  If inflation is 7% and your rate of return in your savings account is 4%, you will experience an overall gain in buying power. 
B)  As inflation rates increase, interest rates offered to savers decrease. 
C)  Inflation does not affect interest rates for savings accounts. 
D)  In order to increase buying power, you need to earn a rate higher than the rate of inflation. 
E)  If you earn 5% and inflation is 10%, your buying power will increase.

Question 7

Lydia found a check that she was given for her birthday nine months earlier.Her bank should refuse to cash the check.

Accepted Answer

A) True 
 B)False

Question 8

Logan paid a bill with a special form.He received this form at his financial institution and had to pay the amount of the check plus a fee.He used a

Accepted Answer

A)  Certified check. 
B)  Cashier's check. 
C)  Merchant's check. 
D)  Personal check. 
E)  Traveler's check. 
A)  Certified check. 
B)  Cashier's check. 
C)  Merchant's check. 
D)  Personal check. 
E)  Traveler's check.

Question 9

Given the information here,what should Jordan's adjusted checkbook balance be?

Accepted Answer

@#IMG-DLM& Adjusted checkbook balance =

Question 10

Aidan wants to be able to complete his payment transactions electronically.Which of the following tools should he use?

Accepted Answer

A)  A debit card. 
B)  An online payment. 
C)  A stored-value card. 
D)  A smart card. 
E)  All of these. 
A)  A debit card. 
B)  An online payment. 
C)  A stored-value card. 
D)  A smart card. 
E)  All of these.

Question 11

When Flo says she's "going to the bank," she may be implying that she is visiting a credit union or stopping at an ATM.

Accepted Answer

A) True 
 B)False

Question 12

Opal earned 6% in her savings account.If she is in the 25% tax bracket,what is her after-tax savings rate of return?

Accepted Answer

A)  2% 
B)  2.5% 
C)  4.5% 
D)  5% 
E)  25% 
A)  2% 
B)  2.5% 
C)  4.5% 
D)  5% 
E)  25%

Question 13

Which of the following is NOT correct?

Accepted Answer

A)  Check 21 decreases the processing time for checks. 
B)  Check 21 allows a substitute check to be an equivalent of the original check. 
C)  A substitute check is a digital reproduction of the original paper check. 
D)  Check 21 increases the fees banks can charge for checking accounts. 
E)  All of these are correct. 
A)  Check 21 decreases the processing time for checks. 
B)  Check 21 allows a substitute check to be an equivalent of the original check. 
C)  A substitute check is a digital reproduction of the original paper check. 
D)  Check 21 increases the fees banks can charge for checking accounts. 
E)  All of these are correct.

Question 14

The FDIC insures a depositor's savings account up to $200,000 per insured financial institution.

Accepted Answer

A) True 
 B)False

Question 15

Brenda lost her debit card.When she realized it was gone,her account had $173 in unauthorized charges.She notified her financial institution within two days.How much is she potentially liable for?

Accepted Answer

A)  $0. 
B)  $25. 
C)  $50. 
D)  $173. 
E)  This cannot be determined with the information provided. 
A)  $0. 
B)  $25. 
C)  $50. 
D)  $173. 
E)  This cannot be determined with the information provided.

Question 16

A benefit of investing in a certificate of deposit is the penalty for early withdrawal.

Accepted Answer

A) True 
 B)False

Question 17

Due to Check 21,the processing time for checks has increased.

Accepted Answer

A) True 
 B)False

Question 18

Making transactions using a credit card will immediately reduce your bank balance.

Accepted Answer

A) True 
 B)False

Question 19

Another name for a regular savings account is a

Accepted Answer

A)  Certificate of deposit. 
B)  Checking account. 
C)  Money market account. 
D)  Money market fund. 
E)  Passbook or statement account. 
A)  Certificate of deposit. 
B)  Checking account. 
C)  Money market account. 
D)  Money market fund. 
E)  Passbook or statement account.

Question 20

Which of the following refers to the opportunity to withdraw money on short notice without incurring a loss in value?

Accepted Answer

A)  Compounding 
B)  Liquidity 
C)  Minimum deposit 
D)  Rate of return 
E)  Safety 
A)  Compounding 
B)  Liquidity 
C)  Minimum deposit 
D)  Rate of return 
E)  Safety

List three types of nondeposit institutions.

Define two of the following: a.Time deposit b.Demand deposit c.Trust d.Cash management account

Neil invested $10,000 in a certificate of deposit earning 9% per year.Unfortunately,he needed to withdraw it before the maturity date.If the penalty was two months of interest,what was his total penalty?

Which of these two checking accounts is a better deal? Why? a.A regular checking account with a monthly fee of $10 when the balance is lower than $300. b.An interest-bearing checking account (paying 1%)with a monthly charge of $5 when the balance is lower than $100.

I bonds earn interest based on a fixed rate plus inflation.

Which of the following is correct about inflation?

Lydia found a check that she was given for her birthday nine months earlier.Her bank should refuse to cash the check.

Logan paid a bill with a special form.He received this form at his financial institution and had to pay the amount of the check plus a fee.He used a

Given the information here,what should Jordan's adjusted checkbook balance be?

Aidan wants to be able to complete his payment transactions electronically.Which of the following tools should he use?

When Flo says she's "going to the bank," she may be implying that she is visiting a credit union or stopping at an ATM.

Opal earned 6% in her savings account.If she is in the 25% tax bracket,what is her after-tax savings rate of return?

Which of the following is NOT correct?

The FDIC insures a depositor's savings account up to $200,000 per insured financial institution.

Brenda lost her debit card.When she realized it was gone,her account had $173 in unauthorized charges.She notified her financial institution within two days.How much is she potentially liable for?

A benefit of investing in a certificate of deposit is the penalty for early withdrawal.

Due to Check 21,the processing time for checks has increased.

Making transactions using a credit card will immediately reduce your bank balance.

Another name for a regular savings account is a

Which of the following refers to the opportunity to withdraw money on short notice without incurring a loss in value?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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Exam 4: Financial Services: Savings Plans and Payment Account

List three types of nondeposit institutions.

Define two of the following: a.Time deposit b.Demand deposit c.Trust d.Cash management account

Neil invested $10,000 in a certificate of deposit earning 9% per year.Unfortunately,he needed to withdraw it before the maturity date.If the penalty was two months of interest,what was his total penalty?

Which of these two checking accounts is a better deal? Why? a.A regular checking account with a monthly fee of $10 when the balance is lower than $300. b.An interest-bearing checking account (paying 1%)with a monthly charge of $5 when the balance is lower than $100.

I bonds earn interest based on a fixed rate plus inflation.

Which of the following is correct about inflation?

Lydia found a check that she was given for her birthday nine months earlier.Her bank should refuse to cash the check.

Logan paid a bill with a special form.He received this form at his financial institution and had to pay the amount of the check plus a fee.He used a

Given the information here,what should Jordan's adjusted checkbook balance be?

Aidan wants to be able to complete his payment transactions electronically.Which of the following tools should he use?

When Flo says she's "going to the bank," she may be implying that she is visiting a credit union or stopping at an ATM.

Opal earned 6% in her savings account.If she is in the 25% tax bracket,what is her after-tax savings rate of return?

Which of the following is NOT correct?

The FDIC insures a depositor's savings account up to $200,000 per insured financial institution.

Brenda lost her debit card.When she realized it was gone,her account had $173 in unauthorized charges.She notified her financial institution within two days.How much is she potentially liable for?

A benefit of investing in a certificate of deposit is the penalty for early withdrawal.

Due to Check 21,the processing time for checks has increased.

Making transactions using a credit card will immediately reduce your bank balance.

Another name for a regular savings account is a

Which of the following refers to the opportunity to withdraw money on short notice without incurring a loss in value?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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