Question 1

Traditionally, the greatest variety of financial services is offered by:

Accepted Answer

A)   credit unions.
B)   investment companies.
C)   mutual savings banks.
D)   savings and loan associations.
E)   commercial banks.F) C) and E)
G) B) and C)

Question 2

The major service offered by investment companies is:

Accepted Answer

A)   interest-bearing checking accounts.
B)   variable-rate loans.
C)   credit card accounts.
D)   savings bonds.
E)   mutual funds.F) All of the above
G) None of the above

Question 3

The purpose of a "special" endorsement is to:

Accepted Answer

A)   cash a check.
B)   deposit a check.
C)   transfer a check to another person.
D)   withdraw cash from your account.
E)   reduce the charge for service fees.F) None of the above
G) B) and E)

Question 4

Comparison of earnings for different savings plans can best be accomplished using the:

Accepted Answer

A)   discounted present value.
B)   compounded rate of return.
C)   net present value.
D)   annual percentage yield.
E)   after-tax rate of return.F) C) and E)
G) C) and D)

Question 5

A restrictive endorsement will usually include the words "for deposit only."

Accepted Answer

A) True 
 B)False

Question 6

Which of the following represent the use of credit?

Accepted Answer

A)   Demand deposits
B)   Mortgage
C)   ATM withdrawals
D)   Time deposits
E)   Debit cardF) C) and D)
G) B) and D)

Question 7

The purpose of a debit card is to:

Accepted Answer

A)   obtain a discount on consumer purchases.
B)   make credit card purchases.
C)   quickly obtain a cash loan.
D)   make investments with an investment company.
E)   transfer money electronically.F) All of the above
G) A) and D)

Question 8

What is the rate that commercial banks charge large corporations for loans called?

Accepted Answer

A)   Prime rate
B)   Discount rate
C)   Mortgage rate
D)   Treasury bond rate
E)   Corporate bond rateF) A) and B)
G) A) and D)

Question 9

Which is an advantage of investing in Series EE U.S. Savings Bonds?

Accepted Answer

A)   When a bond is cashed, the earned interest is exempt from federal income taxes.
B)   Interest is not taxed by the federal government until the bond is cashed.
C)   The interest rate on the bond is adjusted to keep up with inflation.
D)   Series EE Bonds can be sold at a profit on the open bond market.
E)   The rates on Series EE Bonds are usually higher than the rates offered on stocks or corporate bonds.F) All of the above
G) A) and B)

Question 10

To avoid high fees for loans, a person should avoid borrowing from a:

Accepted Answer

A)   credit union.
B)   savings and loan association.
C)   pawn shop.
D)   commercial bank.
E)   mutual savings bank.F) C) and E)
G) B) and E)

Question 11

Based on the following information, what amount would be subtracted from the bank balance side of the checking account reconciliation? Service charge $12; Outstanding checks $145; Interest $3.50; Deposit in transit $80.

Accepted Answer

A)   $145.00
B)   $12.00
C)   $157.00
D)   $148.50
E)   $80.00F) All of the above
G) B) and E)

Question 12

Which of the following is not a deposit institution?

Accepted Answer

A)   Life insurance company
B)   Commercial bank
C)   Savings and loan association
D)   Credit union
E)   Mutual savings bankF) A) and E)
G) All of the above

Question 13

A certificate of deposit is usually considered to be very liquid.

Accepted Answer

A) True 
 B)False

Question 14

The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Suzanne has $200,000 in an individual account and $424,000 in a joint account with her husband, Ted. How much of Suzanne's money is not covered by FDIC insurance?

Accepted Answer

A)   $162,000
B)   $174,000
C)   $374,000
D)   $50,000
E)   $0F) D) and E)
G) A) and C)

Question 15

A _______ endorsement is especially useful when you are depositing checks.

Accepted Answer

A)   blank
B)   restrictive
C)   common
D)   special
E)   documentedF) C) and D)
G) A) and C)

Question 16

Brad Kellogg maintains a monthly balance in his checking account of approximately $150, writes about 25 checks a month, and makes three deposits each month. How would Brad decide which one of the following checking accounts he should use?

Accepted Answer

Bank A: regular checking account with a ...

Question 17

What is the rate an individual will pay for borrowing to purchase a new home called?

Accepted Answer

A)   Prime rate
B)   Discount rate
C)   Mortgage rate
D)   Treasury bond rate
E)   Corporate bond rateF) None of the above
G) A) and C)

Question 18

A regular savings account usually offers a higher rate of return to savers than other savings plans.

Accepted Answer

A) True 
 B)False

Question 19

Series EE bonds continue to earn interest for how many years?

Accepted Answer

A)   10
B)   20
C)   25
D)   30
E)   35F) D) and E)
G) None of the above

Exam 5: Financial Services: Savings Plans and Payment Accounts

Which is an advantage of investing in Series EE U.S. Savings Bonds?

Correct Answer
verified

A restrictive endorsement will usually include the words "for deposit only."

Correct Answer
verified

The purpose of a "special" endorsement is to:

Correct Answer
verified

What is the rate that commercial banks charge large corporations for loans called?

Correct Answer
verified

A certificate of deposit is usually considered to be very liquid.

Correct Answer
verified

The major service offered by investment companies is:

Correct Answer
verified

A _______ endorsement is especially useful when you are depositing checks.

Correct Answer
verified

Based on the following information, what amount would be subtracted from the bank balance side of the checking account reconciliation? Service charge $12; Outstanding checks $145; Interest $3.50; Deposit in transit $80.

Correct Answer
verified

Brad Kellogg maintains a monthly balance in his checking account of approximately $150, writes about 25 checks a month, and makes three deposits each month. How would Brad decide which one of the following checking accounts he should use?

Correct Answer
verified
Bank A: regular checking account with a ...
View Answer

Traditionally, the greatest variety of financial services is offered by:

Correct Answer
verified

The purpose of a debit card is to:

Correct Answer
verified

The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Suzanne has $200,000 in an individual account and $424,000 in a joint account with her husband, Ted. How much of Suzanne's money is not covered by FDIC insurance?

Correct Answer
verified

To avoid high fees for loans, a person should avoid borrowing from a:

Correct Answer
verified

What is the rate an individual will pay for borrowing to purchase a new home called?

Correct Answer
verified

Which of the following is not a deposit institution?

Correct Answer
verified

Which of the following represent the use of credit?

Correct Answer
verified

Series EE bonds continue to earn interest for how many years?

Correct Answer
verified

A regular savings account usually offers a higher rate of return to savers than other savings plans.

Correct Answer
verified

Comparison of earnings for different savings plans can best be accomplished using the:

Correct Answer
verified

Exam 5: Financial Services: Savings Plans and Payment Accounts

Which is an advantage of investing in Series EE U.S. Savings Bonds?

Correct AnswerverifiedShow Answer

A restrictive endorsement will usually include the words "for deposit only."

Correct AnswerverifiedShow Answer

The purpose of a "special" endorsement is to:

Correct AnswerverifiedShow Answer

What is the rate that commercial banks charge large corporations for loans called?

Correct AnswerverifiedShow Answer

A certificate of deposit is usually considered to be very liquid.

Correct AnswerverifiedShow Answer

The major service offered by investment companies is:

Correct AnswerverifiedShow Answer

A _______ endorsement is especially useful when you are depositing checks.

Correct AnswerverifiedShow Answer

Based on the following information, what amount would be subtracted from the bank balance side of the checking account reconciliation? Service charge $12; Outstanding checks $145; Interest $3.50; Deposit in transit $80.

Correct AnswerverifiedShow Answer

Brad Kellogg maintains a monthly balance in his checking account of approximately $150, writes about 25 checks a month, and makes three deposits each month. How would Brad decide which one of the following checking accounts he should use?

Correct AnswerverifiedBank A: regular checking account with a ...View AnswerShow Answer

Traditionally, the greatest variety of financial services is offered by:

Correct AnswerverifiedShow Answer

The purpose of a debit card is to:

Correct AnswerverifiedShow Answer

The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Suzanne has $200,000 in an individual account and $424,000 in a joint account with her husband, Ted. How much of Suzanne's money is not covered by FDIC insurance?

Correct AnswerverifiedShow Answer

To avoid high fees for loans, a person should avoid borrowing from a:

Correct AnswerverifiedShow Answer

What is the rate an individual will pay for borrowing to purchase a new home called?

Correct AnswerverifiedShow Answer

Which of the following is not a deposit institution?

Correct AnswerverifiedShow Answer

Which of the following represent the use of credit?

Correct AnswerverifiedShow Answer

Series EE bonds continue to earn interest for how many years?

Correct AnswerverifiedShow Answer

A regular savings account usually offers a higher rate of return to savers than other savings plans.

Correct AnswerverifiedShow Answer

Comparison of earnings for different savings plans can best be accomplished using the:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Bank A: regular checking account with a ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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