Question 1

Two years ago, Sean deposited money into a savings account and received a toaster as a free gift, which required him to leave his money on deposit for a year. The value of the toaster reduced the amount of interest he earned for the first year.

Accepted Answer

A) True 
 B)False

Question 2

A callable CD allows investors to "cash in" their investment early.

Accepted Answer

A) True 
 B)False

Question 3

Brenda lost her debit card. When she realized it was gone, her account had $173 in unauthorized charges. She notified her financial institution within two days. How much is she potentially liable for?

Accepted Answer

A)  $0. 
B)  $25. 
C)  $50. 
D)  $173. 
E)  $500.

Question 4

Which of the following is NOT required when writing a check?

Accepted Answer

A)  The amount of check written in words 
B)  The date written 
C)  A driver's license number 
D)  The name of person or organization receiving payment 
E)  A signature

Question 5

Which of the following is a type of electronic payment?

Accepted Answer

A)  Certified check 
B)  Interest-earning checking account 
C)  Money order 
D)  Smart card 
E)  Traveler's check

Question 6

Evan had three accounts as listed below. In 2014, how much was his total insurance coverage by the FDIC?
• Bank A: $150,000
• Bank B: $50,000
• Bank C: $350,000

Accepted Answer

A)  $150,000 
B)  $200,000 
C)  $350,000 
D)  $450,000 
E)  $550,000

Question 7

Anders went to Norway and went shopping. He had to sign his name once when he purchased this document and a second time at the store. Anders used a

Accepted Answer

A)  Certified check. 
B)  Cashier's check. 
C)  Money order. 
D)  Personal check. 
E)  Traveler's check.

Question 8

What is the APY for a one-year $4,000 certificate of deposit with $280 interest?

Accepted Answer

A)  5.8% 
B)  9% 
C)  8% 
D)  11.2% 
E)  7%

Question 9

The best option for borrowing money at a low rate is to use a payday loan organization.

Accepted Answer

A) True 
 B)False

Question 10

Lydia found a check that she was given for her birthday nine months earlier. Her bank should refuse to cash the check.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following offers a full range of financial services including checking, savings, lending, and other services?

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

Question 12

A drawback of a regular savings account is

Accepted Answer

A)  Easy access to deposits. 
B)  Being insured. 
C)  A low minimum balance. 
D)  A low rate of return. 
E)  Ease of withdrawal.

Question 13

Nora bought a used car and was told that she needed a personal check with guaranteed payment. She obtained a

Accepted Answer

A)  Certified check. 
B)  Cashier's check. 
C)  Traveler's check. 
D)  Money order. 
E)  None of the above.

Question 14

Logan paid a bill with a special form. He received this form at his financial institution and had to pay the amount of the check plus a fee. He used a

Accepted Answer

A)  Certified check. 
B)  Cashier's check. 
C)  Merchant's check. 
D)  Personal check. 
E)  Traveler's check.

Exam 4: Financial Services: Saving Plans and Payment Accounts

Two years ago, Sean deposited money into a savings account and received a toaster as a free gift, which required him to leave his money on deposit for a year. The value of the toaster reduced the amount of interest he earned for the first year.

A callable CD allows investors to "cash in" their investment early.

Brenda lost her debit card. When she realized it was gone, her account had $173 in unauthorized charges. She notified her financial institution within two days. How much is she potentially liable for?

Which of the following is NOT required when writing a check?

Which of the following is a type of electronic payment?

Evan had three accounts as listed below. In 2014, how much was his total insurance coverage by the FDIC? • Bank A: $150,000 • Bank B: $50,000 • Bank C: $350,000

Anders went to Norway and went shopping. He had to sign his name once when he purchased this document and a second time at the store. Anders used a

What is the APY for a one-year $4,000 certificate of deposit with $280 interest?

The best option for borrowing money at a low rate is to use a payday loan organization.

Lydia found a check that she was given for her birthday nine months earlier. Her bank should refuse to cash the check.

Which of the following offers a full range of financial services including checking, savings, lending, and other services?

A drawback of a regular savings account is

Nora bought a used car and was told that she needed a personal check with guaranteed payment. She obtained a

Logan paid a bill with a special form. He received this form at his financial institution and had to pay the amount of the check plus a fee. He used a