Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Jennifer purchased a prepaid card for transit fares and highway tolls. What kind of card did she purchase?

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 3

A school ID that includes prepaid amounts for school lunches is called a debit card.

Accepted Answer

A) True 
 B)False

Question 4

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 the inflation rates increases, the 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 the inflation rates increases, the 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 5

Web-only banks offer both online transactions and face-to-face transactions.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

If a check is lost or stolen, you should use a

Accepted Answer

A)  Stop-payment order. 
B)  Stale check. 
C)  Bank statement. 
D)  Blank endorsement. 
E)  Deposit ticket. 
A)  Stop-payment order. 
B)  Stale check. 
C)  Bank statement. 
D)  Blank endorsement. 
E)  Deposit ticket.

Question 8

Cathy needs a full range of financial services, including checking, savings, and lending. To which of the following should she go?

Accepted Answer

A)  A commercial bank 
B)  A check-cashing outlet 
C)  A pawnshop 
D)  A payday loan company 
E)  A rent-to-own center 
A)  A commercial bank 
B)  A check-cashing outlet 
C)  A pawnshop 
D)  A payday loan company 
E)  A rent-to-own center

Question 9

Reconciling a checking account is not really necessary since the bank statement includes all activity from the bank's perspective.

Accepted Answer

A) True 
 B)False

Question 10

Amber wants to open an account, but she doesn't know which kind is appropriate. She is interested in earning a higher interest rate and plans to keep at least $1,000 in her account so she can avoid paying a fee. Amber wants to open her account at an investment company and understands that her account will not be covered by federal deposit insurance. What kind of account should she 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 11

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 the above 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 the above are correct.

Question 12

An all-in-one account that provides a complete financial services program for a single fee is known as

Accepted Answer

A)  An asset management account. 
B)  A checking account. 
C)  A trust. 
D)  A loan. 
E)  A savings account. 
A)  An asset management account. 
B)  A checking account. 
C)  A trust. 
D)  A loan. 
E)  A savings account.

Question 13

The "safety" concern with banks and credit unions refers to the potential loss of money due to investors' bad spending habits.

Accepted Answer

A) True 
 B)False

Question 14

Bank customers may now make withdrawals from ATMs using a smartphone, a cash code, and a PIN.

Accepted Answer

A) True 
 B)False

Question 15

Quentin wants his retail purchases to be deducted directly from his checking account. Which of the following tools should he use?

Accepted Answer

A)  A debit card. 
B)  A credit card. 
C)  A stored-value card. 
D)  PayNearMe. 
E)  Reward points. 
A)  A debit card. 
B)  A credit card. 
C)  A stored-value card. 
D)  PayNearMe. 
E)  Reward points.

Question 16

Many people make mistakes when managing current cash needs. Which of these is NOT a frequently made mistake?

Accepted Answer

A)  Using savings or borrowing to pay for current expenses 
B)  Budgeting spending 
C)  Failing to put unneeded funds in an investment plan 
D)  Having insufficient liquid assets to pay current bills 
E)  Overspending due to impulse buying and over using credit 
A)  Using savings or borrowing to pay for current expenses 
B)  Budgeting spending 
C)  Failing to put unneeded funds in an investment plan 
D)  Having insufficient liquid assets to pay current bills 
E)  Overspending due to impulse buying and over using credit

Question 17

When you select a financial services provider, you may find all of the following to be major factors except

Accepted Answer

A)  Company logo. 
B)  Convenience. 
C)  Fee structure and other charges. 
D)  Personal service. 
E)  Rates for savings and borrowed funds. 
A)  Company logo. 
B)  Convenience. 
C)  Fee structure and other charges. 
D)  Personal service. 
E)  Rates for savings and borrowed funds.

Question 18

A $200 savings account that earned $5 after one year would have a rate of return, or yield, of 5 percent.

Accepted Answer

A) True 
 B)False

Question 19

A drawback of a regular savings account is

Accepted Answer

A)  A low rate of return. 
B)  A minimum required deposit. 
C)  Not being insured. 
D)  A possible penalty for early withdrawal. 
E)  All of these are drawbacks of a regular savings account. 
A)  A low rate of return. 
B)  A minimum required deposit. 
C)  Not being insured. 
D)  A possible penalty for early withdrawal. 
E)  All of these are drawbacks of a regular savings account.

Question 20

Claudette's grandchildren are 7 and 9 years old. When Claudette passed away, her grandchildren inherited her money. However, the will stipulated that they should not get control of the money until age 25. Which of the following should be set up to provide for the management and control of the funds?

Accepted Answer

A)  A checking account 
B)  A trust 
C)  A loan 
D)  A savings account 
E)  A certificate of deposit 
A)  A checking account 
B)  A trust 
C)  A loan 
D)  A savings account 
E)  A certificate of deposit

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

Jennifer purchased a prepaid card for transit fares and highway tolls. What kind of card did she purchase?

A school ID that includes prepaid amounts for school lunches is called a debit card.

Which of the following is correct about inflation?

Web-only banks offer both online transactions and face-to-face transactions.

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

If a check is lost or stolen, you should use a

Cathy needs a full range of financial services, including checking, savings, and lending. To which of the following should she go?

Reconciling a checking account is not really necessary since the bank statement includes all activity from the bank's perspective.

Which of the following is NOT correct?

An all-in-one account that provides a complete financial services program for a single fee is known as

The "safety" concern with banks and credit unions refers to the potential loss of money due to investors' bad spending habits.

Bank customers may now make withdrawals from ATMs using a smartphone, a cash code, and a PIN.

Quentin wants his retail purchases to be deducted directly from his checking account. Which of the following tools should he use?

Many people make mistakes when managing current cash needs. Which of these is NOT a frequently made mistake?

When you select a financial services provider, you may find all of the following to be major factors except

A $200 savings account that earned $5 after one year would have a rate of return, or yield, of 5 percent.

A drawback of a regular savings account is

Claudette's grandchildren are 7 and 9 years old. When Claudette passed away, her grandchildren inherited her money. However, the will stipulated that they should not get control of the money until age 25. Which of the following should be set up to provide for the management and control of the funds?

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

Exam 4: Financial Services: Saving Plans and Payment Accounts

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

Jennifer purchased a prepaid card for transit fares and highway tolls. What kind of card did she purchase?

A school ID that includes prepaid amounts for school lunches is called a debit card.

Which of the following is correct about inflation?

Web-only banks offer both online transactions and face-to-face transactions.

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

If a check is lost or stolen, you should use a

Cathy needs a full range of financial services, including checking, savings, and lending. To which of the following should she go?

Reconciling a checking account is not really necessary since the bank statement includes all activity from the bank's perspective.

Which of the following is NOT correct?

An all-in-one account that provides a complete financial services program for a single fee is known as

The "safety" concern with banks and credit unions refers to the potential loss of money due to investors' bad spending habits.

Bank customers may now make withdrawals from ATMs using a smartphone, a cash code, and a PIN.

Quentin wants his retail purchases to be deducted directly from his checking account. Which of the following tools should he use?

Many people make mistakes when managing current cash needs. Which of these is NOT a frequently made mistake?

When you select a financial services provider, you may find all of the following to be major factors except

A $200 savings account that earned $5 after one year would have a rate of return, or yield, of 5 percent.

A drawback of a regular savings account is

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