Question 1

When a bank offers a "free" checking account,that means there are no fees for writing bad checks or using another bank's ATM.

Accepted Answer

A) True 
 B)False

Question 2

According to financial advisers,a person with monthly living expenses of $2,500 should maintain readily accessible savings of at least

Accepted Answer

A) $2,500. 
B) $5,000. 
C) $7,500. 
D) $10,000. 
A) $2,500. 
B) $5,000. 
C) $7,500. 
D) $10,000.

Question 3

Most homeowner's and renter's insurance policies partially cover the liability for theft of both debit and credit cards.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not a technique for reducing the risk whenever you conduct banking transactions on-line?

Accepted Answer

A) Avoid using someone else's computer to manage your account. 
B) Regularly change your password and keep it to yourself. 
C) When finished, always hit the log off button at the top of the page instead of just closing the browser window. 
D) Leaving the browser window open when finished making transactions. 
A) Avoid using someone else's computer to manage your account. 
B) Regularly change your password and keep it to yourself. 
C) When finished, always hit the log off button at the top of the page instead of just closing the browser window. 
D) Leaving the browser window open when finished making transactions.

Question 5

The best banking account PIN numbers and passwords are those that are easy to remember.

Accepted Answer

A) True 
 B)False

Question 6

A money order is a checking instrument bought for a particular amount.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following could incur fees and penalties on a checking account?

Accepted Answer

A) The account holder uses an ATM not owned by the financial institution. 
B) A customer asks the financial institution to not honor a particular check. 
C) The account balance falls below a set minimum amount. 
D) All of these. 
A) The account holder uses an ATM not owned by the financial institution. 
B) A customer asks the financial institution to not honor a particular check. 
C) The account balance falls below a set minimum amount. 
D) All of these.

Question 8

One can increase the amount of money covered by FDIC insurance by dividing his or her money among different branch offices of the same depository institution.

Accepted Answer

A) True 
 B)False

Question 9

An asset management account is a multiple-purpose,coordinated package that provides a wide variety of financial services.

Accepted Answer

A) True 
 B)False

Question 10

How can a person transfer money out of his or her checking account?

Accepted Answer

A) Write a check. 
B) Use a debit card. 
C) Make electronic funds transfers. 
D) All of these. 
A) Write a check. 
B) Use a debit card. 
C) Make electronic funds transfers. 
D) All of these.

Question 11

In monetary assert management,safety means the speed and ease with which an asset can be converted to cash.

Accepted Answer

A) True 
 B)False

Question 12

Commercial banks typically offer the widest variety of financial services.

Accepted Answer

A) True 
 B)False

Question 13

NOW accounts get their name because they are considered demand deposits.

Accepted Answer

A) True 
 B)False

Question 14

The interest rate in force when a CD is purchased typically remains fixed for the entire term of the deposit.

Accepted Answer

A) True 
 B)False

Question 15

Electronic funds transfers (EFTs) move money electronically between accounts rather than by check or cash.

Accepted Answer

A) True 
 B)False

Question 16

Writing a "bad check" can be very expensive because of fees assessed by both the bank and the payee.

Accepted Answer

A) True 
 B)False

Question 17

The primary focus of mutual savings banks is to accept deposits from consumers and provide mortgage and consumer loans.

Accepted Answer

A) True 
 B)False

Question 18

The fairest method for calculating interest on an account used ____ method for determining the balance to which the interest rate is applied.

Accepted Answer

A) minimum-balance 
B) quarterly compounding 
C) APY 
D) average daily balance 
A) minimum-balance 
B) quarterly compounding 
C) APY 
D) average daily balance

Question 19

Deposits in credit unions with federal charters are insured through the National Credit Union Share Insurance Fund (NCUSIF).

Accepted Answer

A) True 
 B)False

Question 20

Bob and Tina Cisneros want to build a $10,000 emergency fund.Which of the following would be the most appropriate choice for the emergency fund?

Accepted Answer

A) Money market deposit account 
B) Two-year certificate of deposit 
C) Series EE U.S. savings bonds 
D) NOW account 
A) Money market deposit account 
B) Two-year certificate of deposit 
C) Series EE U.S. savings bonds 
D) NOW account

When a bank offers a "free" checking account,that means there are no fees for writing bad checks or using another bank's ATM.

According to financial advisers,a person with monthly living expenses of $2,500 should maintain readily accessible savings of at least

Most homeowner's and renter's insurance policies partially cover the liability for theft of both debit and credit cards.

Which of the following is not a technique for reducing the risk whenever you conduct banking transactions on-line?

The best banking account PIN numbers and passwords are those that are easy to remember.

A money order is a checking instrument bought for a particular amount.

Which of the following could incur fees and penalties on a checking account?

One can increase the amount of money covered by FDIC insurance by dividing his or her money among different branch offices of the same depository institution.

An asset management account is a multiple-purpose,coordinated package that provides a wide variety of financial services.

How can a person transfer money out of his or her checking account?

In monetary assert management,safety means the speed and ease with which an asset can be converted to cash.

Commercial banks typically offer the widest variety of financial services.

NOW accounts get their name because they are considered demand deposits.

The interest rate in force when a CD is purchased typically remains fixed for the entire term of the deposit.

Electronic funds transfers (EFTs) move money electronically between accounts rather than by check or cash.

Writing a "bad check" can be very expensive because of fees assessed by both the bank and the payee.

The primary focus of mutual savings banks is to accept deposits from consumers and provide mortgage and consumer loans.

The fairest method for calculating interest on an account used ____ method for determining the balance to which the interest rate is applied.

Deposits in credit unions with federal charters are insured through the National Credit Union Share Insurance Fund (NCUSIF).

Bob and Tina Cisneros want to build a $10,000 emergency fund.Which of the following would be the most appropriate choice for the emergency fund?

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

Filters

Exam 5: Managing Checking and Savings Accounts

When a bank offers a "free" checking account,that means there are no fees for writing bad checks or using another bank's ATM.

According to financial advisers,a person with monthly living expenses of $2,500 should maintain readily accessible savings of at least

Most homeowner's and renter's insurance policies partially cover the liability for theft of both debit and credit cards.

Which of the following is not a technique for reducing the risk whenever you conduct banking transactions on-line?

The best banking account PIN numbers and passwords are those that are easy to remember.

A money order is a checking instrument bought for a particular amount.

Which of the following could incur fees and penalties on a checking account?

One can increase the amount of money covered by FDIC insurance by dividing his or her money among different branch offices of the same depository institution.

An asset management account is a multiple-purpose,coordinated package that provides a wide variety of financial services.

How can a person transfer money out of his or her checking account?

In monetary assert management,safety means the speed and ease with which an asset can be converted to cash.

Commercial banks typically offer the widest variety of financial services.

NOW accounts get their name because they are considered demand deposits.

The interest rate in force when a CD is purchased typically remains fixed for the entire term of the deposit.

Electronic funds transfers (EFTs) move money electronically between accounts rather than by check or cash.

Writing a "bad check" can be very expensive because of fees assessed by both the bank and the payee.

The primary focus of mutual savings banks is to accept deposits from consumers and provide mortgage and consumer loans.

The fairest method for calculating interest on an account used ____ method for determining the balance to which the interest rate is applied.

Deposits in credit unions with federal charters are insured through the National Credit Union Share Insurance Fund (NCUSIF).

Bob and Tina Cisneros want to build a $10,000 emergency fund.Which of the following would be the most appropriate choice for the emergency fund?

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

Filters