Question 1

Saving accounts are sometimes referred to as demand deposits.

Accepted Answer

A) True 
 B)False

Question 2

Low interest rates that have persisted since the financial crisis of 2008-09 have provided a net benefit to

Accepted Answer

A) pension funds. 
B) retirees. 
C) banks. 
D) savers. 
E) bond investors. 
A) pension funds. 
B) retirees. 
C) banks. 
D) savers. 
E) bond investors.

Question 3

ATM transactions require the use of a PIN.

Accepted Answer

A) True 
 B)False

Question 4

.When reporting errors or unauthorized transactions,it is best to notify your bank

Accepted Answer

A) by telephone. 
B) by letter, keeping a copy for your files. 
C) by telephone and follow-up letter, keeping a copy for your files. 
D) by none of the above. 
A) by telephone. 
B) by letter, keeping a copy for your files. 
C) by telephone and follow-up letter, keeping a copy for your files. 
D) by none of the above.

Question 5

Janie Long has checking and savings accounts in a federally insured financial institution.The maximum amount of her insurance coverage is

Accepted Answer

A) $50,000 per account. 
B) $250,000. 
C) $100,000 per account. 
D) $200,000. 
E) $200,000 per account. 
A) $50,000 per account. 
B) $250,000. 
C) $100,000 per account. 
D) $200,000. 
E) $200,000 per account.

Question 6

You are going on an overseas trip and you want to have checks that are easily converted into local currency.You should purchase

Accepted Answer

A) cashier's checks. 
B) certified checks. 
C) conditional checks. 
D) traveler's checks. 
E) guaranteed checks. 
A) cashier's checks. 
B) certified checks. 
C) conditional checks. 
D) traveler's checks. 
E) guaranteed checks.

Question 7

The main business of an S&L is to provide home mortgage and home improvement loans.

Accepted Answer

A) True 
 B)False

Question 8

Convenience and improved record keeping are two advantages cited for online bill payment.

Accepted Answer

A) True 
 B)False

Question 9

S&Ls are the most popular segment of the financial institutions industry.

Accepted Answer

A) True 
 B)False

Question 10

The interest earned on your Series EE savings bonds

Accepted Answer

A) will be taxable every year as it accrues. 
B) will be tax-deferred until redemption. 
C) will be subject to both federal and state income taxes upon redemption. 
D) is tax-free of both federal and state income taxes upon redemption. 
A) will be taxable every year as it accrues. 
B) will be tax-deferred until redemption. 
C) will be subject to both federal and state income taxes upon redemption. 
D) is tax-free of both federal and state income taxes upon redemption.

Question 11

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Almost all | Nearly 75 percent] of the banking institutions in the United States are federally insured.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 12

If Lois has $2,000 in checking,$50,000 in a money market mutual fund,and $75,000 in certificates of deposit (all individual accounts)at her local bank,her accounts would be insured through FDIC for $77,000.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Mark Helig has a checking account in his name and a joint savings account with his wife at the same bank.The maximum amount of deposit insurance the Heligs have is $250,000.

Accepted Answer

A) True 
 B)False

Question 15

The more frequently a bank compounds interest,____ will be.

Accepted Answer

A) the higher the stated interest rate 
B) the lower the stated interest rate 
C) the greater the effective rate of interest 
D) the lower the APY 
E) both a and c 
A) the higher the stated interest rate 
B) the lower the stated interest rate 
C) the greater the effective rate of interest 
D) the lower the APY 
E) both a and c

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Banks must notify customers [30 | 60] days before lowering rates on deposit accounts or certificates of deposit.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

One can avoid early withdrawal penalties on CDs by purchasing them through brokerage firms.

Accepted Answer

A) True 
 B)False

Question 18

Commercial banks are insured by the

Accepted Answer

A) Financial Deposit Insurance Association. 
B) Federal Depositors Assurance Corporation. 
C) Federal Deposit Insurance Corporation. 
D) Financial Deposit Insurance Company. 
E) Federal Demand Deposit Corporation. 
A) Financial Deposit Insurance Association. 
B) Federal Depositors Assurance Corporation. 
C) Federal Deposit Insurance Corporation. 
D) Financial Deposit Insurance Company. 
E) Federal Demand Deposit Corporation.

Question 19

Which of the following is not true of low interest rates?

Accepted Answer

A) It encourages investors to search out investments like high-dividend stocks. 
B) It encourages the substitution of debt for equity. 
C) Low interest rates have increased the supply of credit. 
D) Low rates penalize savers. 
E) Low rates may discourage paying down the national debt. 
A) It encourages investors to search out investments like high-dividend stocks. 
B) It encourages the substitution of debt for equity. 
C) Low interest rates have increased the supply of credit. 
D) Low rates penalize savers. 
E) Low rates may discourage paying down the national debt.

Question 20

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-An asset management account is likely to require a minimum investment of at least [$1,000 | $5,000].

Accepted Answer

The answer of Choose the word or phrase in [...

Saving accounts are sometimes referred to as demand deposits.

Low interest rates that have persisted since the financial crisis of 2008-09 have provided a net benefit to

ATM transactions require the use of a PIN.

.When reporting errors or unauthorized transactions,it is best to notify your bank

Janie Long has checking and savings accounts in a federally insured financial institution.The maximum amount of her insurance coverage is

You are going on an overseas trip and you want to have checks that are easily converted into local currency.You should purchase

The main business of an S&L is to provide home mortgage and home improvement loans.

Convenience and improved record keeping are two advantages cited for online bill payment.

S&Ls are the most popular segment of the financial institutions industry.

The interest earned on your Series EE savings bonds

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Almost all | Nearly 75 percent] of the banking institutions in the United States are federally insured.

If Lois has $2,000 in checking,$50,000 in a money market mutual fund,and $75,000 in certificates of deposit (all individual accounts)at her local bank,her accounts would be insured through FDIC for $77,000.

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

Mark Helig has a checking account in his name and a joint savings account with his wife at the same bank.The maximum amount of deposit insurance the Heligs have is $250,000.

The more frequently a bank compounds interest,____ will be.

One can avoid early withdrawal penalties on CDs by purchasing them through brokerage firms.

Commercial banks are insured by the

Which of the following is not true of low interest rates?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -An asset management account is likely to require a minimum investment of at least [$1,000 | $5,000].

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

Saving accounts are sometimes referred to as demand deposits.

Low interest rates that have persisted since the financial crisis of 2008-09 have provided a net benefit to

ATM transactions require the use of a PIN.

.When reporting errors or unauthorized transactions,it is best to notify your bank

Janie Long has checking and savings accounts in a federally insured financial institution.The maximum amount of her insurance coverage is

You are going on an overseas trip and you want to have checks that are easily converted into local currency.You should purchase

The main business of an S&L is to provide home mortgage and home improvement loans.

Convenience and improved record keeping are two advantages cited for online bill payment.

S&Ls are the most popular segment of the financial institutions industry.

The interest earned on your Series EE savings bonds

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Almost all | Nearly 75 percent] of the banking institutions in the United States are federally insured.

If Lois has $2,000 in checking,$50,000 in a money market mutual fund,and $75,000 in certificates of deposit (all individual accounts)at her local bank,her accounts would be insured through FDIC for $77,000.

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

Mark Helig has a checking account in his name and a joint savings account with his wife at the same bank.The maximum amount of deposit insurance the Heligs have is $250,000.

The more frequently a bank compounds interest,____ will be.

One can avoid early withdrawal penalties on CDs by purchasing them through brokerage firms.

Commercial banks are insured by the

Which of the following is not true of low interest rates?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -An asset management account is likely to require a minimum investment of at least [$1,000 | $5,000].

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