Question 1

Margaret signed the back of her check with the words "pay to the order of Penelope." She used a(n)

Accepted Answer

A)  Blank endorsement. 
B)  Restrictive endorsement. 
C)  Deposit ticket. 
D)  Special endorsement. 
E)  Individual account. 
A)  Blank endorsement. 
B)  Restrictive endorsement. 
C)  Deposit ticket. 
D)  Special endorsement. 
E)  Individual account.

Question 2

Shelby has an account at a financial institution that will waive the monthly fee if she keeps a certain amount in savings. What kind of account does she have?

Accepted Answer

A)  A regular checking account. 
B)  An activity account. 
C)  An interest-earning checking account. 
D)  Share draft account. 
E)  All of these are correct. 
A)  A regular checking account. 
B)  An activity account. 
C)  An interest-earning checking account. 
D)  Share draft account. 
E)  All of these are correct.

Question 3

A credit card is a type of

Accepted Answer

A)  Checking account. 
B)  Trust. 
C)  Loan/borrowing. 
D)  Savings account. 
E)  Cash account. 
A)  Checking account. 
B)  Trust. 
C)  Loan/borrowing. 
D)  Savings account. 
E)  Cash account.

Question 4

Given the information here, what should Jason's adjusted bank balance for his bank reconciliation be? • Bank balance: $\quad\quad \$ 300$
* Outstanding checks: $\$129$
* Deposit in transit:$\quad \$50$
* ATM Fees: $\quad\quad\quad \$ 26$
* Interest earned: $\quad\quad \$ 5$
* Checkbook balance: $\$ 242$

Accepted Answer

A)  $113 
B)  $171 
C)  $221 
D)  $242 
E)  $300 
A)  $113 
B)  $171 
C)  $221 
D)  $242 
E)  $300

Question 5

A joint account with Sara and John allows

Accepted Answer

A)  Only John to write checks. 
B)  Only Sara to write checks. 
C)  Sara or John to complete a signature card. 
D)  John and Sara to both write checks on the account. 
E)  All of these. 
A)  Only John to write checks. 
B)  Only Sara to write checks. 
C)  Sara or John to complete a signature card. 
D)  John and Sara to both write checks on the account. 
E)  All of these.

Question 6

Aidan wants to be able to tap or wave his phone at the point-of-sale terminal sensor to complete purchases. 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)  Mobile transfer. 
A)  A debit card. 
B)  An online payment. 
C)  A stored-value card. 
D)  A smart card. 
E)  Mobile transfer.

Question 7

A demand deposit is also known as

Accepted Answer

A)  A checking account. 
B)  A trust. 
C)  A loan. 
D)  A savings account. 
E)  All of these are demand deposits. 
A)  A checking account. 
B)  A trust. 
C)  A loan. 
D)  A savings account. 
E)  All of these are demand deposits.

Question 8

Earnings on savings can be measured by the

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.

Question 9

Victor read the fine print for a checking account he was thinking about using. The fine print said, "A minimum balance of $500 is required. If your balance falls below this level, you will be assessed a monthly fee of $10." Since Victor was planning to keep only a $50 balance in his account, how much could he be charged each year?

Accepted Answer

A)  $0.00 
B)  $10.00 
C)  $50.00 
D)  $60.00 
E)  $120.00 
A)  $0.00 
B)  $10.00 
C)  $50.00 
D)  $60.00 
E)  $120.00

Question 10

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)  7.5% 
E)  25% 
A)  2% 
B)  2.5% 
C)  4.5% 
D)  7.5% 
E)  25%

Question 11

Billy accepted a job at a company that specializes in providing money for short-term retail lending. Where did he go to work?

Accepted Answer

A)  A credit card company 
B)  An investment company 
C)  A life insurance company 
D)  A finance company 
E)  A payday loan company 
A)  A credit card company 
B)  An investment company 
C)  A life insurance company 
D)  A finance company 
E)  A payday loan company

Question 12

Nicholas earned 8% in his savings account. If he is in the 28% tax bracket, what is his after-tax savings rate of return?

Accepted Answer

A)  2.5% 
B)  3.6% 
C)  5.76% 
D)  7.2% 
E)  28% 
A)  2.5% 
B)  3.6% 
C)  5.76% 
D)  7.2% 
E)  28%

Question 13

A commercial bank is the same thing as a credit union.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following provides deposit insurance for credit unions?

Accepted Answer

A)  FDCU 
B)  FDIC 
C)  NCUA 
D)  SAIF 
E)  None of these 
A)  FDCU 
B)  FDIC 
C)  NCUA 
D)  SAIF 
E)  None of these

Question 15

(p. 126-127 )
In general, which fees have doubled or tripled in price at some financial institutions for checking accounts?

Accepted Answer

A)  Overdraft fees. 
B)  Stop-payment orders. 
C)  Check printing. 
D)  None of the above fees have increased. 
E)  All of the above fees have increased. 
A)  Overdraft fees. 
B)  Stop-payment orders. 
C)  Check printing. 
D)  None of the above fees have increased. 
E)  All of the above fees have increased.

Question 16

As inflation rates increase, the interest rates offered to savers usually increase.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following refers to the opportunity to withdraw your 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

Question 18

Gwen had three accounts as listed here. In 2014, how much was her total insurance coverage by the FDIC?
• Bank A: $250,000
• Bank B: $50,000
• Bank C: $300,000

Accepted Answer

A)  $250,000 
B)  $300,000 
C)  $550,000 
D)  $600,000 
E)  $825,000 
A)  $250,000 
B)  $300,000 
C)  $550,000 
D)  $600,000 
E)  $825,000

Question 19

Zoe signed the back of her check with the words "for deposit only." She used a(n)

Accepted Answer

A)  Blank endorsement. 
B)  Restrictive endorsement. 
C)  Deposit ticket. 
D)  Special endorsement. 
E)  Individual account. 
A)  Blank endorsement. 
B)  Restrictive endorsement. 
C)  Deposit ticket. 
D)  Special endorsement. 
E)  Individual account.

Question 20

Given the information here, what should Jason's adjusted checkbook balance be? * Bank balance: $\quad\quad\quad \$ 600$
* Outstanding checks: $\quad \$ 260$
* Deposit in transit: $\quad\quad \$ 100$
* ATMfees: $\quad\quad\quad\quad\quad \$ 50$
* Interest earned: $\quad\quad\quad \$ 10$
* Checkbook balance: $\quad \$ 480$

Accepted Answer

A)  $113 
B)  $171 
C)  $221 
D)  $242 
E)  $300 
A)  $113 
B)  $171 
C)  $221 
D)  $242 
E)  $300

Margaret signed the back of her check with the words "pay to the order of Penelope." She used a(n)

Shelby has an account at a financial institution that will waive the monthly fee if she keeps a certain amount in savings. What kind of account does she have?

A credit card is a type of

A joint account with Sara and John allows

Aidan wants to be able to tap or wave his phone at the point-of-sale terminal sensor to complete purchases. Which of the following tools should he use?

A demand deposit is also known as

Earnings on savings can be measured by the

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

Billy accepted a job at a company that specializes in providing money for short-term retail lending. Where did he go to work?

Nicholas earned 8% in his savings account. If he is in the 28% tax bracket, what is his after-tax savings rate of return?

A commercial bank is the same thing as a credit union.

Which of the following provides deposit insurance for credit unions?

(p. 126-127 ) In general, which fees have doubled or tripled in price at some financial institutions for checking accounts?

As inflation rates increase, the interest rates offered to savers usually increase.

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

Gwen had three accounts as listed here. In 2014, how much was her total insurance coverage by the FDIC? • Bank A: $250,000 • Bank B: $50,000 • Bank C: $300,000

Zoe signed the back of her check with the words "for deposit only." She used a(n)

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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Exam 4: Financial Services: Saving Plans and Payment Accounts

Margaret signed the back of her check with the words "pay to the order of Penelope." She used a(n)

Shelby has an account at a financial institution that will waive the monthly fee if she keeps a certain amount in savings. What kind of account does she have?

A credit card is a type of

A joint account with Sara and John allows

Aidan wants to be able to tap or wave his phone at the point-of-sale terminal sensor to complete purchases. Which of the following tools should he use?

A demand deposit is also known as

Earnings on savings can be measured by the

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

Billy accepted a job at a company that specializes in providing money for short-term retail lending. Where did he go to work?

Nicholas earned 8% in his savings account. If he is in the 28% tax bracket, what is his after-tax savings rate of return?

A commercial bank is the same thing as a credit union.

Which of the following provides deposit insurance for credit unions?

(p. 126-127 ) In general, which fees have doubled or tripled in price at some financial institutions for checking accounts?

As inflation rates increase, the interest rates offered to savers usually increase.

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

Gwen had three accounts as listed here. In 2014, how much was her total insurance coverage by the FDIC? • Bank A: $250,000 • Bank B: $50,000 • Bank C: $300,000

Zoe signed the back of her check with the words "for deposit only." She used a(n)

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters