Question 1

In the independent life stage,you should open the following account(s):

Accepted Answer

A) IRA. 
B) checking account. 
C) overdraft protection. 
D) all of the options are correct. 
A) IRA. 
B) checking account. 
C) overdraft protection. 
D) all of the options are correct. D

Question 2

Checking account overdraft protection

Accepted Answer

A) saves you money in overdraft fees. 
B) saves your reputation. 
C) saves you time. 
D) all of the options are correct. 
A) saves you money in overdraft fees. 
B) saves your reputation. 
C) saves you time. 
D) all of the options are correct. D

Question 3

Financial intermediaries accept money for deposits and then lend out the money to make a profit.

Accepted Answer

A) True 
 B)False  True

Question 4

With a credit union account you earn

Accepted Answer

A) interest. 
B) dividends. 
C) capital gains. 
D) equity income. 
A) interest. 
B) dividends. 
C) capital gains. 
D) equity income.

Question 5

Which criteria would you not use in selecting an institution to bank with?

Accepted Answer

A) Products and services 
B) Square footage of branch location 
C) Convenience 
D) Costs 
A) Products and services 
B) Square footage of branch location 
C) Convenience 
D) Costs

Question 6

Which is not a benefit of overdraft protection?

Accepted Answer

A) Saves you money in overdraft fees 
B) Saves your reputation 
C) Saves you time 
D) Allows you to not have to balance your checking account 
A) Saves you money in overdraft fees 
B) Saves your reputation 
C) Saves you time 
D) Allows you to not have to balance your checking account

Question 7

What are financial intermediaries?

Accepted Answer

A) They accept money for deposits and then lend the money for a profit. 
B) They provide a place to discuss money. 
C) They provide a place to think about and consider investments. 
D) Wall Street firms 
A) They accept money for deposits and then lend the money for a profit. 
B) They provide a place to discuss money. 
C) They provide a place to think about and consider investments. 
D) Wall Street firms

Question 8

Reconciling a checking account is

Accepted Answer

A) not necessary because the bank never makes a mistake. 
B) complicated and difficult to do. 
C) not necessary because you can check your balance online and on ATM receipts. 
D) something that everyone should do. 
A) not necessary because the bank never makes a mistake. 
B) complicated and difficult to do. 
C) not necessary because you can check your balance online and on ATM receipts. 
D) something that everyone should do.

Question 9

Savings accounts are limited by the number of third-party withdrawals.

Accepted Answer

A) True 
 B)False

Question 10

In what life stage should you start an IRA?

Accepted Answer

A) Dependent life stage 
B) Independent life stage 
C) Early family life stage 
D) Empty nest life stage 
A) Dependent life stage 
B) Independent life stage 
C) Early family life stage 
D) Empty nest life stage

Question 11

Overdraft fees ________.

Accepted Answer

A) do not amount to much money 
B) cover only the cost to process an overdrawn check 
C) are punitive to keep people from overdrawing their account 
D) are regulated by the government 
A) do not amount to much money 
B) cover only the cost to process an overdrawn check 
C) are punitive to keep people from overdrawing their account 
D) are regulated by the government

Question 12

Which of the following is a difference between commercial banks and credit unions?

Accepted Answer

A) Commercial banks issue loans while credit unions do not. 
B) You must have a credit card to be part of a credit union. 
C) Commercial banks have stockholders and credit unions do not. 
D) Commercial banks are for people with a common bond. 
A) Commercial banks issue loans while credit unions do not. 
B) You must have a credit card to be part of a credit union. 
C) Commercial banks have stockholders and credit unions do not. 
D) Commercial banks are for people with a common bond.

Question 13

________ are similar to 401(k)plans as they are both funded with pretax earnings.

Accepted Answer

A) Roth IRAs 
B) Traditional IRAs 
C) Certificates of deposit 
D) Mutual funds 
A) Roth IRAs 
B) Traditional IRAs 
C) Certificates of deposit 
D) Mutual funds

Question 14

Which financial institution would be the best fit for a college-aged student who needs a checking account?

Accepted Answer

A) Commercial bank 
B) Credit union 
C) Savings institution 
D) All of the options are correct. 
A) Commercial bank 
B) Credit union 
C) Savings institution 
D) All of the options are correct.

Question 15

"Free" checking accounts are always free,with no fees or service charges.

Accepted Answer

A) True 
 B)False

Question 16

A prepaid tuition plan does not include

Accepted Answer

A) locking into prices at eligible and public and private colleges and universities. 
B) state plans guaranteed or backed by the state. 
C) age/grade limits for the beneficiary. 
D) open enrollment all year. 
A) locking into prices at eligible and public and private colleges and universities. 
B) state plans guaranteed or backed by the state. 
C) age/grade limits for the beneficiary. 
D) open enrollment all year.

Question 17

A checking account at a commercial bank is called a

Accepted Answer

A) share draft account. 
B) negotiable instrument. 
C) financial intermediary. 
D) demand deposit account. 
A) share draft account. 
B) negotiable instrument. 
C) financial intermediary. 
D) demand deposit account.

Question 18

With most auto loans,what is used as collateral?

Accepted Answer

A) Certificate of deposit 
B) Stock 
C) The purchased auto 
D) No collateral is needed because of your outstanding credit. 
A) Certificate of deposit 
B) Stock 
C) The purchased auto 
D) No collateral is needed because of your outstanding credit.

Question 19

What are the types of checking accounts?

Accepted Answer

A) Basic checking and free checking 
B) New construction draw accounts 
C) Interest-bearing checking 
D) Basic,free,AND interest-bearing 
A) Basic checking and free checking 
B) New construction draw accounts 
C) Interest-bearing checking 
D) Basic,free,AND interest-bearing

Question 20

What is the advantage of a credit union which allows them to pay you a higher return on deposits ?

Accepted Answer

A) Being a not-for-profit business 
B) Having many locations 
C) Having many ATMs 
D) Having high-end technology 
A) Being a not-for-profit business 
B) Having many locations 
C) Having many ATMs 
D) Having high-end technology

In the independent life stage,you should open the following account(s):

Checking account overdraft protection

Financial intermediaries accept money for deposits and then lend out the money to make a profit.

With a credit union account you earn

Which criteria would you not use in selecting an institution to bank with?

Which is not a benefit of overdraft protection?

What are financial intermediaries?

Reconciling a checking account is

Savings accounts are limited by the number of third-party withdrawals.

In what life stage should you start an IRA?

Overdraft fees ________.

Which of the following is a difference between commercial banks and credit unions?

________ are similar to 401(k)plans as they are both funded with pretax earnings.

Which financial institution would be the best fit for a college-aged student who needs a checking account?

"Free" checking accounts are always free,with no fees or service charges.

A prepaid tuition plan does not include

A checking account at a commercial bank is called a

With most auto loans,what is used as collateral?

What are the types of checking accounts?

What is the advantage of a credit union which allows them to pay you a higher return on deposits ?

Money Matters: Values, vision, mission, and You

Planning and Budgeting

Time Value of Money

Consumer Credit: Credit Cards and Student Loans

Credit Bureau Reports and Identity Theft

Auto and Home Loans

Debt,foreclosure,and Bankruptcy

Tax Management

Insurance: Covering Your Assets

Investment Basics

Mutual Funds

Stocks

Bonds

Real Estate Investments

Retirement and Estate Planning

Financial Planning for Life

Filters

Exam 3: Financial Instruments and Institutions

In the independent life stage,you should open the following account(s):

Checking account overdraft protection

Financial intermediaries accept money for deposits and then lend out the money to make a profit.

With a credit union account you earn

Which criteria would you not use in selecting an institution to bank with?

Which is not a benefit of overdraft protection?

What are financial intermediaries?

Reconciling a checking account is

Savings accounts are limited by the number of third-party withdrawals.

In what life stage should you start an IRA?

Overdraft fees ________.

Which of the following is a difference between commercial banks and credit unions?

________ are similar to 401(k)plans as they are both funded with pretax earnings.

Which financial institution would be the best fit for a college-aged student who needs a checking account?

"Free" checking accounts are always free,with no fees or service charges.

A prepaid tuition plan does not include

A checking account at a commercial bank is called a

With most auto loans,what is used as collateral?

What are the types of checking accounts?

What is the advantage of a credit union which allows them to pay you a higher return on deposits ?

Money Matters: Values, vision, mission, and You

Planning and Budgeting

Time Value of Money

Consumer Credit: Credit Cards and Student Loans

Credit Bureau Reports and Identity Theft

Auto and Home Loans

Debt,foreclosure,and Bankruptcy

Tax Management

Insurance: Covering Your Assets

Investment Basics

Mutual Funds

Stocks

Bonds

Real Estate Investments

Retirement and Estate Planning

Financial Planning for Life

Filters