Question 1

Mark and Betty want to keep $339,200 in cash equivalents that are FDIC insured. They could accomplish this by

Accepted Answer

A)  investing $74,200 in a money market mutual fund and $265,000 in a federally insured credit union. 
B)  dividing it equally into three different joint accounts in the same federally insured bank. 
C)  dividing it equally into two different joint accounts in two different credit unions. 
D)  dividing it equally into two individual accounts at the same bank. 
A)  investing $74,200 in a money market mutual fund and $265,000 in a federally insured credit union. 
B)  dividing it equally into three different joint accounts in the same federally insured bank. 
C)  dividing it equally into two different joint accounts in two different credit unions. 
D)  dividing it equally into two individual accounts at the same bank. D

Question 2

Negative items on your credit report include which of the following?

Accepted Answer

A)  Accounts sent to collections. 
B)  Inquiries resulting from a transaction you initiate. 
C)  Your request to review your own credit report. 
D)  Low checking account balances. 
A)  Accounts sent to collections. 
B)  Inquiries resulting from a transaction you initiate. 
C)  Your request to review your own credit report. 
D)  Low checking account balances. A

Question 3

What type of payment can be made electronically without a debit card?

Accepted Answer

A)  Direct debit. 
B)  Debit card with PIN. 
C)  Debit card with signature. 
D)  Prepaid card. 
A)  Direct debit. 
B)  Debit card with PIN. 
C)  Debit card with signature. 
D)  Prepaid card. A

Question 4

Who decides to grant or deny your credit application?

Accepted Answer

A)  Lender. 
B)  Credit bureau. 
C)  Credit reporting agency. 
D)  Federal Trade Commission. 
A)  Lender. 
B)  Credit bureau. 
C)  Credit reporting agency. 
D)  Federal Trade Commission.

Question 5

In what time frame are the funds transferred from your account to the merchant account when using your debit card?

Accepted Answer

A)  Immediately. 
B)  The next day. 
C)  The next business day. 
D)  In 2 business days. 
A)  Immediately. 
B)  The next day. 
C)  The next business day. 
D)  In 2 business days.

Question 6

A personal check issued by a bank that guarantees the amount will be paid is what type of check?

Accepted Answer

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

Question 7

On January 1, Pablo borrows $5,000 with a fixed interest rate on the loan of 10% and a loan term of 2 years. He will be making monthly payments of $230.72. How much of Pablo's first loan payment would be interest charged for January, the first month of the loan?

Accepted Answer

A)  $40.09. 
B)  $41.67. 
C)  $42.98. 
D)  $43.67. 
A)  $40.09. 
B)  $41.67. 
C)  $42.98. 
D)  $43.67.

Question 8

How much does the Federal Deposit Insurance Corporation (FDIC) currently insure against loss per person in an individual account at any one institution?

Accepted Answer

A)  $50,000. 
B)  $100,000. 
C)  $250,000. 
D)  $500,000. 
A)  $50,000. 
B)  $100,000. 
C)  $250,000. 
D)  $500,000.

Question 9

Which of the following forms of payment allows a consumer to make purchases over the Internet?

Accepted Answer

A)  Cash. 
B)  Checks. 
C)  Prepaid cards. 
D)  Money orders. 
A)  Cash. 
B)  Checks. 
C)  Prepaid cards. 
D)  Money orders.

Question 10

An example of revolving credit includes

Accepted Answer

A)  MasterCard. 
B)  student loans. 
C)  mortgage loan. 
D)  car loan. 
A)  MasterCard. 
B)  student loans. 
C)  mortgage loan. 
D)  car loan.

Question 11

Which company maintains housing and credit files on consumers?

Accepted Answer

A)  Credit bureau. 
B)  Bank. 
C)  Credit union. 
D)  Payday lender. 
A)  Credit bureau. 
B)  Bank. 
C)  Credit union. 
D)  Payday lender.

Question 12

Travel and entertainment cards use which of the following payment networks?

Accepted Answer

A)  MasterCard. 
B)  Visa. 
C)  American Express. 
D)  All of these answer choices are correct. 
A)  MasterCard. 
B)  Visa. 
C)  American Express. 
D)  All of these answer choices are correct.

Question 13

On January 1, Pablo borrows $5,000 with a fixed interest rate on the loan of 10% and a loan term of 2 years. He will be making monthly payments of $230.72. How much of Pablo's fifth loan payment would be principal?

Accepted Answer

A)  $190.63. 
B)  $192.22. 
C)  $193.82. 
D)  $195.43. 
A)  $190.63. 
B)  $192.22. 
C)  $193.82. 
D)  $195.43.

Question 14

Amara lost his debit card on May 1st. He reported it missing the next day; however, $600 had already been purchased with the card without the use of his PIN number. How much of this $600 loss is Amara responsible for?

Accepted Answer

A)  $0. 
B)  $50. 
C)  $500. 
D)  $600. 
A)  $0. 
B)  $50. 
C)  $500. 
D)  $600.

Question 15

A ________ requires the borrower to deposit the full amount of the line of credit at the bank as collateral before the credit card is issued.

Accepted Answer

A)  home equity line of credit 
B)  debit card 
C)  prepaid debit card 
D)  secured credit card 
A)  home equity line of credit 
B)  debit card 
C)  prepaid debit card 
D)  secured credit card

Question 16

Credit card costs can include

Accepted Answer

A)  annual fees. 
B)  interest. 
C)  transaction fees. 
D)  All of these answer choices are correct. 
A)  annual fees. 
B)  interest. 
C)  transaction fees. 
D)  All of these answer choices are correct.

Question 17

A(n) ________ is simply your written order to your bank to pay a third party.

Accepted Answer

A)  check 
B)  receipt 
C)  invoice 
D)  endorsement 
A)  check 
B)  receipt 
C)  invoice 
D)  endorsement

Question 18

A credit report is a summarized account of your

Accepted Answer

A)  work history. 
B)  leasing history. 
C)  education. 
D)  credit history. 
A)  work history. 
B)  leasing history. 
C)  education. 
D)  credit history.

Question 19

The Federal Deposit Insurance Corporation (FDIC) insures accounts in

Accepted Answer

A)  commercial banks. 
B)  credit unions. 
C)  brokerage companies. 
D)  commercial banks and credit unions. 
A)  commercial banks. 
B)  credit unions. 
C)  brokerage companies. 
D)  commercial banks and credit unions.

Question 20

How are finance charges generally stated?

Accepted Answer

A)  Percentage. 
B)  As interest. 
C)  Absolute dollars. 
D)  Percentage and dollars. 
A)  Percentage. 
B)  As interest. 
C)  Absolute dollars. 
D)  Percentage and dollars.

Mark and Betty want to keep $339,200 in cash equivalents that are FDIC insured. They could accomplish this by

Negative items on your credit report include which of the following?

What type of payment can be made electronically without a debit card?

Who decides to grant or deny your credit application?

In what time frame are the funds transferred from your account to the merchant account when using your debit card?

A personal check issued by a bank that guarantees the amount will be paid is what type of check?

On January 1, Pablo borrows $5,000 with a fixed interest rate on the loan of 10% and a loan term of 2 years. He will be making monthly payments of $230.72. How much of Pablo's first loan payment would be interest charged for January, the first month of the loan?

How much does the Federal Deposit Insurance Corporation (FDIC) currently insure against loss per person in an individual account at any one institution?

Which of the following forms of payment allows a consumer to make purchases over the Internet?

An example of revolving credit includes

Which company maintains housing and credit files on consumers?

Travel and entertainment cards use which of the following payment networks?

On January 1, Pablo borrows $5,000 with a fixed interest rate on the loan of 10% and a loan term of 2 years. He will be making monthly payments of $230.72. How much of Pablo's fifth loan payment would be principal?

Amara lost his debit card on May 1st. He reported it missing the next day; however, $600 had already been purchased with the card without the use of his PIN number. How much of this $600 loss is Amara responsible for?

A ________ requires the borrower to deposit the full amount of the line of credit at the bank as collateral before the credit card is issued.

Credit card costs can include

A(n) ________ is simply your written order to your bank to pay a third party.

A credit report is a summarized account of your

The Federal Deposit Insurance Corporation (FDIC) insures accounts in

How are finance charges generally stated?

Beginning Your Financial Journey: the Interior Finance Point of View

Tools for Your Financial Journey

Earnings and Income: the Building Blocks of Your Financial Journey

Personal Taxation

Loans and Housing Decisions

The Foundation of Savings

Investments

Risk Management: the Role of Insurance

Planning for the Future: Retirement and Estate Planning

Filters

Exam 5: Checking Accounts, Credit Scores, and Credit Cards

Mark and Betty want to keep $339,200 in cash equivalents that are FDIC insured. They could accomplish this by

Negative items on your credit report include which of the following?

What type of payment can be made electronically without a debit card?

Who decides to grant or deny your credit application?

In what time frame are the funds transferred from your account to the merchant account when using your debit card?

A personal check issued by a bank that guarantees the amount will be paid is what type of check?

On January 1, Pablo borrows $5,000 with a fixed interest rate on the loan of 10% and a loan term of 2 years. He will be making monthly payments of $230.72. How much of Pablo's first loan payment would be interest charged for January, the first month of the loan?

How much does the Federal Deposit Insurance Corporation (FDIC) currently insure against loss per person in an individual account at any one institution?

Which of the following forms of payment allows a consumer to make purchases over the Internet?

An example of revolving credit includes

Which company maintains housing and credit files on consumers?

Travel and entertainment cards use which of the following payment networks?

On January 1, Pablo borrows $5,000 with a fixed interest rate on the loan of 10% and a loan term of 2 years. He will be making monthly payments of $230.72. How much of Pablo's fifth loan payment would be principal?

Amara lost his debit card on May 1st. He reported it missing the next day; however, $600 had already been purchased with the card without the use of his PIN number. How much of this $600 loss is Amara responsible for?

A ________ requires the borrower to deposit the full amount of the line of credit at the bank as collateral before the credit card is issued.

Credit card costs can include

A(n) ________ is simply your written order to your bank to pay a third party.

A credit report is a summarized account of your

The Federal Deposit Insurance Corporation (FDIC) insures accounts in

How are finance charges generally stated?

Beginning Your Financial Journey: the Interior Finance Point of View

Tools for Your Financial Journey

Earnings and Income: the Building Blocks of Your Financial Journey

Personal Taxation

Loans and Housing Decisions

The Foundation of Savings

Investments

Risk Management: the Role of Insurance

Planning for the Future: Retirement and Estate Planning

Filters