Question 1

A 529 plan is

Accepted Answer

A) funds set aside to go toward post-secondary education expenses. 
B) an account which allows the holder to write checks against deposited funds. 
C) funds set aside to be withdrawn after age 59.5 without penalty. 
D) a plan where taxes are not paid on the money or interest earned until the year it is withdrawn. 
A) funds set aside to go toward post-secondary education expenses. 
B) an account which allows the holder to write checks against deposited funds. 
C) funds set aside to be withdrawn after age 59.5 without penalty. 
D) a plan where taxes are not paid on the money or interest earned until the year it is withdrawn.

Question 2

All 50 states and the District of Columbia sponsor at least one type of this savings,which is when funds are set aside to go toward post-secondary education expenses.

Accepted Answer

A) Certificate of deposit 
B) 529 plan 
C) Savings bonds 
D) 401(k)plan 
A) Certificate of deposit 
B) 529 plan 
C) Savings bonds 
D) 401(k)plan

Question 3

Which of the following is known as a negotiable instrument?

Accepted Answer

A) Checks 
B) Cash 
C) Credit card 
D) Debit card 
A) Checks 
B) Cash 
C) Credit card 
D) Debit card

Question 4

Tristan is a freshman in high school in a very low tax bracket and is looking for a way to save money for retirement (yes… It is never too early to start!).What strategy would be best for him to use?

Accepted Answer

A) 529 plan 
B) CD 
C) Roth IRA 
D) 401(k) 
A) 529 plan 
B) CD 
C) Roth IRA 
D) 401(k)

Question 5

What plan is also known as a qualified tuition plan?

Accepted Answer

A) Qualified college savings plan 
B) Savings plan 
C) 529 plan 
D) College qualification plan 
A) Qualified college savings plan 
B) Savings plan 
C) 529 plan 
D) College qualification plan

Question 6

Of the following statements,which one accurately describes what investments are?

Accepted Answer

A) A foundation for your savings 
B) Savings vehicles that provide the same return as certificates of deposit 
C) Savings vehicles with no risk 
D) A way to have your money grow faster than inflation 
A) A foundation for your savings 
B) Savings vehicles that provide the same return as certificates of deposit 
C) Savings vehicles with no risk 
D) A way to have your money grow faster than inflation

Question 7

You can use 529 plans to pay for transportation to and from college.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following does a person not normally have in his or her dependent life stage?

Accepted Answer

A) 529 college savings plans 
B) Savings account 
C) Checking account 
D) Certificates of deposit 
A) 529 college savings plans 
B) Savings account 
C) Checking account 
D) Certificates of deposit

Question 9

If a credit union goes bankrupt,who or what insures that the account will get its money back up to $250,000?

Accepted Answer

A) FDIC 
B) NCUA 
C) NCUSIF 
D) FSLIC 
A) FDIC 
B) NCUA 
C) NCUSIF 
D) FSLIC

Question 10

A negotiable instrument is an agreement that must be dated,payable for a specific amount of money,signed by the person who owns the account,and payable to someone or some company.

Accepted Answer

A) True 
 B)False

Question 11

When choosing a financial institution,it is important to consider all of the following except

Accepted Answer

A) fees and interest rates. 
B) locations and hours. 
C) accounts offered. 
D) all of the options are correct. 
A) fees and interest rates. 
B) locations and hours. 
C) accounts offered. 
D) all of the options are correct.

Question 12

Which of the following are reasons for putting money into a CD (certificate of deposit)?

Accepted Answer

A) To earn a higher rate of interest on your savings than would typically be earned if savings were placed in one's checking account or standard savings account 
B) To establish a solid savings foundation if you are not going to use the money for a longer period of time 
C) To have a safe place to store savings while still being able to make frequent withdrawals from the account penalty-free 
D) Both to earn more interest and to put money you don't plan to use in the short-term to work 
A) To earn a higher rate of interest on your savings than would typically be earned if savings were placed in one's checking account or standard savings account 
B) To establish a solid savings foundation if you are not going to use the money for a longer period of time 
C) To have a safe place to store savings while still being able to make frequent withdrawals from the account penalty-free 
D) Both to earn more interest and to put money you don't plan to use in the short-term to work

Question 13

To choose the right type of financial instrument,which of the following should you consider?

Accepted Answer

A) Fees 
B) Locations and hours 
C) Interest rates 
D) All of the options are correct. 
A) Fees 
B) Locations and hours 
C) Interest rates 
D) All of the options are correct.

Question 14

A 529 plan is used to save for

Accepted Answer

A) a car. 
B) retirement. 
C) a house. 
D) college. 
A) a car. 
B) retirement. 
C) a house. 
D) college.

Question 15

What is a savings account designed for?

Accepted Answer

A) Spending money 
B) Counting money 
C) Saving money 
D) Investing money 
A) Spending money 
B) Counting money 
C) Saving money 
D) Investing money

Question 16

A reverse mortgage

Accepted Answer

A) allows you to live in your house and have access to the equity. 
B) is a fixed rate mortgage. 
C) is only available to those 62 years of age and older. 
D) allows you to live in your house and have access to equity and is available to those 62 years and older. 
A) allows you to live in your house and have access to the equity. 
B) is a fixed rate mortgage. 
C) is only available to those 62 years of age and older. 
D) allows you to live in your house and have access to equity and is available to those 62 years and older.

Question 17

The difference between a Roth IRA and a traditional IRA is

Accepted Answer

A) a roth IRA contribution is made after you pay tax on the money you deposit. 
B) a traditional IRA contribution is made after you pay tax on the money you deposit. 
C) roth IRA contributions are made with pretax money. 
D) with a traditional IRA,you never have to pay tax. 
A) a roth IRA contribution is made after you pay tax on the money you deposit. 
B) a traditional IRA contribution is made after you pay tax on the money you deposit. 
C) roth IRA contributions are made with pretax money. 
D) with a traditional IRA,you never have to pay tax.

Question 18

You should do all of the following to prevent written checks from being altered except

Accepted Answer

A) count the number of checks you wrote this month. 
B) put a $ sign in front of the amount in the currency box. 
C) make a note in the memo line for your own reference. 
D) start your written amount on the far left. 
A) count the number of checks you wrote this month. 
B) put a $ sign in front of the amount in the currency box. 
C) make a note in the memo line for your own reference. 
D) start your written amount on the far left.

Question 19

Certificates of deposit

Accepted Answer

A) have a minimum opening balance. 
B) have a substantial penalty for early withdrawal. 
C) have a fixed maturity date. 
D) all of the options are correct. 
A) have a minimum opening balance. 
B) have a substantial penalty for early withdrawal. 
C) have a fixed maturity date. 
D) all of the options are correct.

Question 20

Which of the following statements is true regarding interest-bearing checking accounts?

Accepted Answer

A) There are no penalties for overdrawing your account. 
B) To have interest paid on your balance,oftentimes you must meet certain requirements,such as maintaining a high minimum balance,having your paycheck directly deposited into your account,and using your debit card as a credit card a minimum number of times per month. 
C) There is no monthly service charge or per-item fee regardless of your balance. 
D) You are limited to the number of checks or ATM transactions per month. 
A) There are no penalties for overdrawing your account. 
B) To have interest paid on your balance,oftentimes you must meet certain requirements,such as maintaining a high minimum balance,having your paycheck directly deposited into your account,and using your debit card as a credit card a minimum number of times per month. 
C) There is no monthly service charge or per-item fee regardless of your balance. 
D) You are limited to the number of checks or ATM transactions per month.

A 529 plan is

All 50 states and the District of Columbia sponsor at least one type of this savings,which is when funds are set aside to go toward post-secondary education expenses.

Which of the following is known as a negotiable instrument?

Tristan is a freshman in high school in a very low tax bracket and is looking for a way to save money for retirement (yes… It is never too early to start!).What strategy would be best for him to use?

What plan is also known as a qualified tuition plan?

Of the following statements,which one accurately describes what investments are?

You can use 529 plans to pay for transportation to and from college.

Which of the following does a person not normally have in his or her dependent life stage?

If a credit union goes bankrupt,who or what insures that the account will get its money back up to $250,000?

A negotiable instrument is an agreement that must be dated,payable for a specific amount of money,signed by the person who owns the account,and payable to someone or some company.

When choosing a financial institution,it is important to consider all of the following except

Which of the following are reasons for putting money into a CD (certificate of deposit)?

To choose the right type of financial instrument,which of the following should you consider?

A 529 plan is used to save for

What is a savings account designed for?

A reverse mortgage

The difference between a Roth IRA and a traditional IRA is

You should do all of the following to prevent written checks from being altered except

Certificates of deposit

Which of the following statements is true regarding interest-bearing checking accounts?

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

A 529 plan is

All 50 states and the District of Columbia sponsor at least one type of this savings,which is when funds are set aside to go toward post-secondary education expenses.

Which of the following is known as a negotiable instrument?

Tristan is a freshman in high school in a very low tax bracket and is looking for a way to save money for retirement (yes… It is never too early to start!).What strategy would be best for him to use?

What plan is also known as a qualified tuition plan?

Of the following statements,which one accurately describes what investments are?

You can use 529 plans to pay for transportation to and from college.

Which of the following does a person not normally have in his or her dependent life stage?

If a credit union goes bankrupt,who or what insures that the account will get its money back up to $250,000?

A negotiable instrument is an agreement that must be dated,payable for a specific amount of money,signed by the person who owns the account,and payable to someone or some company.

When choosing a financial institution,it is important to consider all of the following except

Which of the following are reasons for putting money into a CD (certificate of deposit)?

To choose the right type of financial instrument,which of the following should you consider?

A 529 plan is used to save for

What is a savings account designed for?

A reverse mortgage

The difference between a Roth IRA and a traditional IRA is

You should do all of the following to prevent written checks from being altered except

Certificates of deposit

Which of the following statements is true regarding interest-bearing checking accounts?

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