Question 1

A passbook savings account may be a useful tool in managing everyday household transactions.

Accepted Answer

A) True 
 B)False

Question 2

Connie Shockey wants to put funds in an account that does not offer checking privileges because she has a tendency to overspend.Which of the following would fit her criteria?

Accepted Answer

A)  NOW account 
B)  A DDA with overdraft protection 
C)  money market mutual fund 
D)  money market deposit account 
E)  certificate of deposit 
A)  NOW account 
B)  A DDA with overdraft protection 
C)  money market mutual fund 
D)  money market deposit account 
E)  certificate of deposit

Question 3

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Credit unions are generally [small | large] institutions when compared with commercial banks and savings and loans.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 4

John Anderson deposited $10,000 in a CD for 3 years at 5%.It should now be worth (Use time value tables or financial calculator)

Accepted Answer

A)  $10,500. 
B)  $10,725. 
C)  $11,400. 
D)  $11,580. 
E)  $12,400. 
A)  $10,500. 
B)  $10,725. 
C)  $11,400. 
D)  $11,580. 
E)  $12,400.

Question 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The FDIC insures each [depositor | account] up to a stated maximum dollar amount at any given financial institution.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 6

In the wake of the recent financial crisis,the U.S.personal saving rate decreased.

Accepted Answer

A) True 
 B)False

Question 7

A regular savings account is a demand deposit.

Accepted Answer

A) True 
 B)False

Question 8

A major reason for overdrafts is the inability of a check writer to keep an accurate check ledger.

Accepted Answer

A) True 
 B)False

Question 9

Stop-payment services are easier with electronic funds transfers than with traditional check payments.

Accepted Answer

A) True 
 B)False

Question 10

Within how many business days must a bank make proceeds of deposited checks available?

Accepted Answer

A)  3 days for all checks 
B)  3 days for local and 7 days for non-local checks 
C)  2 days for local and 5 days for non-local checks 
D)  5 days for all checks 
E)  7 days for all checks 
A)  3 days for all checks 
B)  3 days for local and 7 days for non-local checks 
C)  2 days for local and 5 days for non-local checks 
D)  5 days for all checks 
E)  7 days for all checks

Question 11

Credit unions typically pay higher rates of return on savings than banks and savings and loan associations.

Accepted Answer

A) True 
 B)False

Question 12

Savings and loan associations (S & Ls)channel the savings of depositors primarily into automotive loans.

Accepted Answer

A) True 
 B)False

Question 13

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Credit unions are more likely to be paying [much | slightly] higher interest rates on their accounts than a commercial bank.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 14

There is a penalty for early withdrawal of funds from CDs purchased from brokerage firms.

Accepted Answer

A) True 
 B)False

Question 15

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding.

Accepted Answer

A) True 
 B)False

Question 16

The least expensive method for banks to interact with their customers is

Accepted Answer

A)  in person 
B)  on the phone 
C)  on-line 
D)  ATM machine 
E)  self service kiosks 
A)  in person 
B)  on the phone 
C)  on-line 
D)  ATM machine 
E)  self service kiosks

Question 17

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Many people choose a bank solely on [services | convenience].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 18

You have a savings plan into which you put $3,000 per year.How much will you accumulate in the account in 25 years if the interest rate is 10%?

Accepted Answer

$295,038 or $295,041

Question 19

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-You are buying a large amount of merchandise through the mail from a dealer several hundred miles from you with whom you have never dealt before.The dealer will probably require that you pay him with a cashiers or [travelers | certified] check.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 20

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[More than | Fewer than] half the banking institutions in the U.S.are federally insured.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

A passbook savings account may be a useful tool in managing everyday household transactions.

Connie Shockey wants to put funds in an account that does not offer checking privileges because she has a tendency to overspend.Which of the following would fit her criteria?

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Credit unions are generally [small | large] institutions when compared with commercial banks and savings and loans.

John Anderson deposited $10,000 in a CD for 3 years at 5%.It should now be worth (Use time value tables or financial calculator)

Choose the word or phrase in [ ] which will correctly complete the statement. Select -The FDIC insures each [depositor | account] up to a stated maximum dollar amount at any given financial institution.

In the wake of the recent financial crisis,the U.S.personal saving rate decreased.

A regular savings account is a demand deposit.

A major reason for overdrafts is the inability of a check writer to keep an accurate check ledger.

Stop-payment services are easier with electronic funds transfers than with traditional check payments.

Within how many business days must a bank make proceeds of deposited checks available?

Credit unions typically pay higher rates of return on savings than banks and savings and loan associations.

Savings and loan associations (S & Ls)channel the savings of depositors primarily into automotive loans.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Credit unions are more likely to be paying [much | slightly] higher interest rates on their accounts than a commercial bank.

There is a penalty for early withdrawal of funds from CDs purchased from brokerage firms.

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding.

The least expensive method for banks to interact with their customers is

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Many people choose a bank solely on [services | convenience].

You have a savings plan into which you put $3,000 per year.How much will you accumulate in the account in 25 years if the interest rate is 10%?

Choose the word or phrase in [ ] which will correctly complete the statement. Select -[More than | Fewer than] half the banking institutions in the U.S.are federally insured.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 4: Managing Your Cash and Savings

A passbook savings account may be a useful tool in managing everyday household transactions.

Connie Shockey wants to put funds in an account that does not offer checking privileges because she has a tendency to overspend.Which of the following would fit her criteria?

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Credit unions are generally [small | large] institutions when compared with commercial banks and savings and loans.

John Anderson deposited $10,000 in a CD for 3 years at 5%.It should now be worth (Use time value tables or financial calculator)

Choose the word or phrase in [ ] which will correctly complete the statement. Select -The FDIC insures each [depositor | account] up to a stated maximum dollar amount at any given financial institution.

In the wake of the recent financial crisis,the U.S.personal saving rate decreased.

A regular savings account is a demand deposit.

A major reason for overdrafts is the inability of a check writer to keep an accurate check ledger.

Stop-payment services are easier with electronic funds transfers than with traditional check payments.

Within how many business days must a bank make proceeds of deposited checks available?

Credit unions typically pay higher rates of return on savings than banks and savings and loan associations.

Savings and loan associations (S & Ls)channel the savings of depositors primarily into automotive loans.

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Credit unions are more likely to be paying [much | slightly] higher interest rates on their accounts than a commercial bank.

There is a penalty for early withdrawal of funds from CDs purchased from brokerage firms.

Your savings will grow faster with monthly interest compounding than with quarterly interest compounding.

The least expensive method for banks to interact with their customers is

Choose the word or phrase in [ ] which will correctly complete the statement. Select -Many people choose a bank solely on [services | convenience].

You have a savings plan into which you put $3,000 per year.How much will you accumulate in the account in 25 years if the interest rate is 10%?

Choose the word or phrase in [ ] which will correctly complete the statement. Select -[More than | Fewer than] half the banking institutions in the U.S.are federally insured.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters