Question 1

A check drawn on a financial institution,backed by the financial institution's finances,and made out to a specific payee is called a

Accepted Answer

A) certified check. 
B) money order. 
C) cashier's check. 
D) traveler's check. 
A) certified check. 
B) money order. 
C) cashier's check. 
D) traveler's check. C

Question 2

A personal identification number is not needed for which of the following forms of electronic funds transfers?

Accepted Answer

A) ATM transactions 
B) Direct deposits 
C) Debit cards 
D) Point-of-sale transactions 
A) ATM transactions 
B) Direct deposits 
C) Debit cards 
D) Point-of-sale transactions B

Question 3

Your bank will regularly (usually monthly) provide a compilation of your recent account activity,which is called a(n)

Accepted Answer

A) receipt. 
B) periodic statement. 
C) reconciliation. 
D) account ledger. 
A) receipt. 
B) periodic statement. 
C) reconciliation. 
D) account ledger. B

Question 4

A payable-on-death designation can be used to set up an individual account that automatically goes to another person when you die.

Accepted Answer

A) True 
 B)False

Question 5

The term money market account describes a variety of high-interest earning accounts that normally have unlimited check-writing privileges.

Accepted Answer

A) True 
 B)False

Question 6

Wise money managers should select the savings option that

Accepted Answer

A) pays the highest annual percentage yield (APY). 
B) avoids excessive fees. 
C) avoids excessive penalties. 
D) all of these. 
A) pays the highest annual percentage yield (APY). 
B) avoids excessive fees. 
C) avoids excessive penalties. 
D) all of these.

Question 7

Money market deposit accounts are normally federally insured whereas money market mutual funds are not federally insured.

Accepted Answer

A) True 
 B)False

Question 8

A ______ is a firm that notifies all companies with which you have debit and credit cards in the event that the cards are lost.

Accepted Answer

A) card registration service 
B) truth-in-savings service 
C) money-market fund. 
D) account monitoring service. 
A) card registration service 
B) truth-in-savings service 
C) money-market fund. 
D) account monitoring service.

Question 9

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 10

If one believes interests rates will move lower in the months ahead,he or she should invest in long-term,fixed-rate savings investments.

Accepted Answer

A) True 
 B)False

Question 11

A long-term,fixed-rate certificate of deposit would be most appropriate when interest rates are moving up.

Accepted Answer

A) True 
 B)False

Question 12

A person whose income is dependent on commissions generally needs more readily available emergency funds than a salaried employee.

Accepted Answer

A) True 
 B)False

Question 13

Common financial services offered by depository institutions include

Accepted Answer

A) checking, lending, and savings. 
B) checking, real estate sales, and savings. 
C) credit cards, stock brokerage, and tax preparation. 
D) legal advice, savings, and life insurance. 
A) checking, lending, and savings. 
B) checking, real estate sales, and savings. 
C) credit cards, stock brokerage, and tax preparation. 
D) legal advice, savings, and life insurance.

Question 14

It is not required for an ATM or a POS terminal to provide a written receipt.

Accepted Answer

A) True 
 B)False

Question 15

A tenancy by the entirety account may be opened only by spouses.

Accepted Answer

A) True 
 B)False

Question 16

Fees of no more $10 are generally charged for money orders,certified checks and cashier's checks.

Accepted Answer

A) True 
 B)False

Question 17

Darla had $750 in her checking account when her debit card was stolen.Assuming the thief made $525 in purchases with the card,how much could she save by reporting the stolen ATM card immediately rather than waiting more than three months before reporting the theft?

Accepted Answer

A) $50 
B) $525 
C) $475 
D) $500 
A) $50 
B) $525 
C) $475 
D) $500

Question 18

While the majority of certificates of deposit pay a fixed rate of interest,variable-rate certificates of deposit are available.

Accepted Answer

A) True 
 B)False

Question 19

Share draft accounts at credit unions are generally more expensive than NOW accounts at commercial banks.

Accepted Answer

A) True 
 B)False

Question 20

Tom and Mindy want to keep $420,000 in cash equivalents that are federally insured.They could accomplish this by

Accepted Answer

A) investing $170,000 in a money market mutual fund and $250,000 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 federally insured savings banks. 
D) putting $75,000 in two joint accounts in different branches of the same bank. 
A) investing $170,000 in a money market mutual fund and $250,000 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 federally insured savings banks. 
D) putting $75,000 in two joint accounts in different branches of the same bank.

A check drawn on a financial institution,backed by the financial institution's finances,and made out to a specific payee is called a

A personal identification number is not needed for which of the following forms of electronic funds transfers?

Your bank will regularly (usually monthly) provide a compilation of your recent account activity,which is called a(n)

A payable-on-death designation can be used to set up an individual account that automatically goes to another person when you die.

The term money market account describes a variety of high-interest earning accounts that normally have unlimited check-writing privileges.

Wise money managers should select the savings option that

Money market deposit accounts are normally federally insured whereas money market mutual funds are not federally insured.

A ______ is a firm that notifies all companies with which you have debit and credit cards in the event that the cards are lost.

The Federal Deposit Insurance Corporation (FDIC) insures accounts in

If one believes interests rates will move lower in the months ahead,he or she should invest in long-term,fixed-rate savings investments.

A long-term,fixed-rate certificate of deposit would be most appropriate when interest rates are moving up.

A person whose income is dependent on commissions generally needs more readily available emergency funds than a salaried employee.

Common financial services offered by depository institutions include

It is not required for an ATM or a POS terminal to provide a written receipt.

A tenancy by the entirety account may be opened only by spouses.

Fees of no more $10 are generally charged for money orders,certified checks and cashier's checks.

Darla had $750 in her checking account when her debit card was stolen.Assuming the thief made $525 in purchases with the card,how much could she save by reporting the stolen ATM card immediately rather than waiting more than three months before reporting the theft?

While the majority of certificates of deposit pay a fixed rate of interest,variable-rate certificates of deposit are available.

Share draft accounts at credit unions are generally more expensive than NOW accounts at commercial banks.

Tom and Mindy want to keep $420,000 in cash equivalents that are federally insured.They could accomplish this by

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

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Exam 5: Managing Checking and Savings Accounts

A check drawn on a financial institution,backed by the financial institution's finances,and made out to a specific payee is called a

A personal identification number is not needed for which of the following forms of electronic funds transfers?

Your bank will regularly (usually monthly) provide a compilation of your recent account activity,which is called a(n)

A payable-on-death designation can be used to set up an individual account that automatically goes to another person when you die.

The term money market account describes a variety of high-interest earning accounts that normally have unlimited check-writing privileges.

Wise money managers should select the savings option that

Money market deposit accounts are normally federally insured whereas money market mutual funds are not federally insured.

A ______ is a firm that notifies all companies with which you have debit and credit cards in the event that the cards are lost.

The Federal Deposit Insurance Corporation (FDIC) insures accounts in

If one believes interests rates will move lower in the months ahead,he or she should invest in long-term,fixed-rate savings investments.

A long-term,fixed-rate certificate of deposit would be most appropriate when interest rates are moving up.

A person whose income is dependent on commissions generally needs more readily available emergency funds than a salaried employee.

Common financial services offered by depository institutions include

It is not required for an ATM or a POS terminal to provide a written receipt.

A tenancy by the entirety account may be opened only by spouses.

Fees of no more $10 are generally charged for money orders,certified checks and cashier's checks.

Darla had $750 in her checking account when her debit card was stolen.Assuming the thief made $525 in purchases with the card,how much could she save by reporting the stolen ATM card immediately rather than waiting more than three months before reporting the theft?

While the majority of certificates of deposit pay a fixed rate of interest,variable-rate certificates of deposit are available.

Share draft accounts at credit unions are generally more expensive than NOW accounts at commercial banks.

Tom and Mindy want to keep $420,000 in cash equivalents that are federally insured.They could accomplish this by

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

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