Question 1

The Truth in Savings Act requires financial institutions to disclose the _____ on savings accounts.

Accepted Answer

A)  annual percentage yield (APY) 
B)  compounding 
C)  liquidity 
D)  tax rate 
E)  safety certification 
A)  annual percentage yield (APY) 
B)  compounding 
C)  liquidity 
D)  tax rate 
E)  safety certification

Question 2

When you select a financial services provider, you should ask all of the following questions except

Accepted Answer

A)  Will I be able to borrow money if I need it? 
B)  How can I minimize the cost of checking and payment services? 
C)  Where can I get the best return on my savings? 
D)  All of the questions above should be asked. 
E)  None of these questions are needed. 
A)  Will I be able to borrow money if I need it? 
B)  How can I minimize the cost of checking and payment services? 
C)  Where can I get the best return on my savings? 
D)  All of the questions above should be asked. 
E)  None of these questions are needed.

Question 3

Zach wants to open an account, but he doesn't know which kind is appropriate. He is interested in earning a higher interest rate and knows that he might not be able to write many checks from his account. In addition, he plans to keep at least $1,000 in his account so he can avoid paying a fee. He definitely wants to have federal deposit insurance. What kind of account should he open?

Accepted Answer

A)  A certificate of deposit 
B)  An interest-earning checking account 
C)  A money market account 
D)  A money market fund 
E)  A regular savings account 
A)  A certificate of deposit 
B)  An interest-earning checking account 
C)  A money market account 
D)  A money market fund 
E)  A regular savings account

Question 4

Why are some financial service operations referred to as financial supermarkets?

Accepted Answer

A)  They offer a combination of services from one source. 
B)  Customers can receive cash and a receipt. 
C)  They have many locations, like supermarkets. 
D)  They are often located in supermarkets or convenience stores. 
E)  Their prices are similar to those in a supermarket. 
A)  They offer a combination of services from one source. 
B)  Customers can receive cash and a receipt. 
C)  They have many locations, like supermarkets. 
D)  They are often located in supermarkets or convenience stores. 
E)  Their prices are similar to those in a supermarket.

Question 5

Brandon lost his debit card. When he realized it was gone, his account had $238 in unauthorized charges. Since he was embarrassed about his loss, he didn't contact his financial institution for 45 days. What is the most that he is liable for?

Accepted Answer

A)  $0 
B)  $50 
C)  $188 
D)  $238 
E)  $500 
A)  $0 
B)  $50 
C)  $188 
D)  $238 
E)  $500

Question 6

The text discusses several types of bonds. Which bond is purchased at face value and has two components to the rate of interest earned-a fixed rate and an inflation rate that changes twice a year?

Accepted Answer

A)  Series E 
B)  Series EE 
C)  Series HH 
D)  Series I 
E)  Series Q 
A)  Series E 
B)  Series EE 
C)  Series HH 
D)  Series I 
E)  Series Q

Question 7

Common payment choices for everyday activities include all of the following except

Accepted Answer

A)  Cash. 
B)  Check. 
C)  Credit card. 
D)  Short-term loan. 
E)  Debit card. 
A)  Cash. 
B)  Check. 
C)  Credit card. 
D)  Short-term loan. 
E)  Debit card.

Question 8

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

Question 9

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 10

Justin needs to have access to his money in five months. The best option for his savings is a

Accepted Answer

A)  Series EE bond. 
B)  Money market account. 
C)  Five-year certificate of deposit. 
D)  Series I bond. 
E)  Six-month certificate of deposit. 
A)  Series EE bond. 
B)  Money market account. 
C)  Five-year certificate of deposit. 
D)  Series I bond. 
E)  Six-month certificate of deposit.

Question 11

Karen wanted a certificate of deposit that would definitely be available the entire length of time until maturity. She would NOT want to consider a

Accepted Answer

A)  Bump-up CD. 
B)  Callable CD. 
C)  Portfolio CD. 
D)  Promotional CD. 
E)  Indexed CD. 
A)  Bump-up CD. 
B)  Callable CD. 
C)  Portfolio CD. 
D)  Promotional CD. 
E)  Indexed CD.

Question 12

The Truth in Savings Act requires financial institutions to disclose the interest rate on loans.

Accepted Answer

A) True 
 B)False

Question 13

Smishing is a scam that uses email spam or pop-up messages to deceive you into revealing your credit card number, social security number, passwords, or other private information.

Accepted Answer

A) True 
 B)False

Question 14

A savings account is also known as a demand deposit.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

If you think that rates will fall in the future, you should buy a long-term CD to lock in your rate now.

Accepted Answer

A) True 
 B)False

Question 17

When Angela wanted to provide financial security for her dependents, she considered purchasing a specific type of account at a

Accepted Answer

A)  Credit card company. 
B)  Investment company. 
C)  Life insurance company. 
D)  Finance company. 
E)  Payday loan company. 
A)  Credit card company. 
B)  Investment company. 
C)  Life insurance company. 
D)  Finance company. 
E)  Payday loan company.

Question 18

The insurance coverage provided by the FDIC for a savings account is ________ per depositor per insured financial institution.

Accepted Answer

A)  $50,000 
B)  $100,000 
C)  $150,000 
D)  $250,000 
E)  $500,000 
A)  $50,000 
B)  $100,000 
C)  $150,000 
D)  $250,000 
E)  $500,000

Question 19

Which of the following primarily provides loans for home purchases?

Accepted Answer

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

Question 20

An asset management account is an all-in-one account that is also called a cash management account.

Accepted Answer

A) True 
 B)False

The Truth in Savings Act requires financial institutions to disclose the _____ on savings accounts.

When you select a financial services provider, you should ask all of the following questions except

Why are some financial service operations referred to as financial supermarkets?

Brandon lost his debit card. When he realized it was gone, his account had $238 in unauthorized charges. Since he was embarrassed about his loss, he didn't contact his financial institution for 45 days. What is the most that he is liable for?

The text discusses several types of bonds. Which bond is purchased at face value and has two components to the rate of interest earned-a fixed rate and an inflation rate that changes twice a year?

Common payment choices for everyday activities include all of the following except

A time deposit is also known as

Another name for a regular savings account is a

Justin needs to have access to his money in five months. The best option for his savings is a

Karen wanted a certificate of deposit that would definitely be available the entire length of time until maturity. She would NOT want to consider a

The Truth in Savings Act requires financial institutions to disclose the interest rate on loans.

Smishing is a scam that uses email spam or pop-up messages to deceive you into revealing your credit card number, social security number, passwords, or other private information.

A savings account is also known as a demand deposit.

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

If you think that rates will fall in the future, you should buy a long-term CD to lock in your rate now.

When Angela wanted to provide financial security for her dependents, she considered purchasing a specific type of account at a

The insurance coverage provided by the FDIC for a savings account is ________ per depositor per insured financial institution.

Which of the following primarily provides loans for home purchases?

An asset management account is an all-in-one account that is also called a cash management account.

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

The Truth in Savings Act requires financial institutions to disclose the _____ on savings accounts.

When you select a financial services provider, you should ask all of the following questions except

Why are some financial service operations referred to as financial supermarkets?

Brandon lost his debit card. When he realized it was gone, his account had $238 in unauthorized charges. Since he was embarrassed about his loss, he didn't contact his financial institution for 45 days. What is the most that he is liable for?

The text discusses several types of bonds. Which bond is purchased at face value and has two components to the rate of interest earned-a fixed rate and an inflation rate that changes twice a year?

Common payment choices for everyday activities include all of the following except

A time deposit is also known as

Another name for a regular savings account is a

Justin needs to have access to his money in five months. The best option for his savings is a

Karen wanted a certificate of deposit that would definitely be available the entire length of time until maturity. She would NOT want to consider a

The Truth in Savings Act requires financial institutions to disclose the interest rate on loans.

Smishing is a scam that uses email spam or pop-up messages to deceive you into revealing your credit card number, social security number, passwords, or other private information.

A savings account is also known as a demand deposit.

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

If you think that rates will fall in the future, you should buy a long-term CD to lock in your rate now.

When Angela wanted to provide financial security for her dependents, she considered purchasing a specific type of account at a

The insurance coverage provided by the FDIC for a savings account is ________ per depositor per insured financial institution.

Which of the following primarily provides loans for home purchases?

An asset management account is an all-in-one account that is also called a cash management account.

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