Question 1

What is a credit union?

Accepted Answer

A) A not-for-profit depository institution that serves members who have a common affiliation 
B) A financial institution that accepts deposits and uses the funds to provide private business and personal loans 
C) A group of workers who pay union dues for credit 
D) A place where it snows 
A) A not-for-profit depository institution that serves members who have a common affiliation 
B) A financial institution that accepts deposits and uses the funds to provide private business and personal loans 
C) A group of workers who pay union dues for credit 
D) A place where it snows

Question 2

________ were established for people who have a common bond.

Accepted Answer

A) Commercial bonds 
B) Credit bureaus 
C) Stockholders 
D) Credit unions 
A) Commercial bonds 
B) Credit bureaus 
C) Stockholders 
D) Credit unions

Question 3

With a reverse mortgage,upon the death of the last surviving homeowner,if there is negative equity in the home,the survivors will owe money to the bank.

Accepted Answer

A) True 
 B)False

Question 4

Why should you look at your checking account statements?

Accepted Answer

A) Because your parents taught you to do so 
B) To look for possible bank errors 
C) To look for possible fraud 
D) To look for errors AND to look for fraud 
A) Because your parents taught you to do so 
B) To look for possible bank errors 
C) To look for possible fraud 
D) To look for errors AND to look for fraud

Question 5

There are three major types of consumer financial institutions: commercial banks,credit unions,and savings institutions.

Accepted Answer

A) True 
 B)False

Question 6

Debit cards

Accepted Answer

A) limit fraudulent charges on your card regardless of how quickly you report the charge. 
B) build a solid savings foundation. 
C) prevent fraudsters from draining your bank account if lost. 
D) should be reported lost or stolen within 48 hours to limit your liability. 
A) limit fraudulent charges on your card regardless of how quickly you report the charge. 
B) build a solid savings foundation. 
C) prevent fraudsters from draining your bank account if lost. 
D) should be reported lost or stolen within 48 hours to limit your liability.

Question 7

Accounts that are opened in the dependent life stage include

Accepted Answer

A) savings. 
B) college savings. 
C) IRA. 
D) both savings and college savings accounts. 
A) savings. 
B) college savings. 
C) IRA. 
D) both savings and college savings accounts.

Question 8

Which best defines a 529 plan?

Accepted Answer

A) An account that is designed to help finance future college expenses. 
B) A time deposit account where the depositor agrees on a time period and sum of money. 
C) An account that allows the holder to write checks against funds deposited in the account. 
D) Funds set aside to be withdrawn after the age of 59.5 without penalty. 
A) An account that is designed to help finance future college expenses. 
B) A time deposit account where the depositor agrees on a time period and sum of money. 
C) An account that allows the holder to write checks against funds deposited in the account. 
D) Funds set aside to be withdrawn after the age of 59.5 without penalty.

Question 9

A ________ is an account designed to encourage saving for future college expenses and is legally known as a "qualified tuition plan."

Accepted Answer

A) CD 
B) 529 plan 
C) roth IRA 
D) checking account 
A) CD 
B) 529 plan 
C) roth IRA 
D) checking account

Question 10

What is a debit card?

Accepted Answer

A) A card that carries a credit card logo and is tied to a checking account 
B) A card known as a bank card or a cash card that does not include a credit card logo 
C) A card that has a minimum line of credit 
D) A loan card provided by a bank after being approved by a loan officer 
A) A card that carries a credit card logo and is tied to a checking account 
B) A card known as a bank card or a cash card that does not include a credit card logo 
C) A card that has a minimum line of credit 
D) A loan card provided by a bank after being approved by a loan officer

Question 11

Electronic bill paying allows you to

Accepted Answer

A) check the balances in your accounts. 
B) deposit checks. 
C) pay your bills online. 
D) all of the options are correct. 
A) check the balances in your accounts. 
B) deposit checks. 
C) pay your bills online. 
D) all of the options are correct.

Question 12

Why is it good to balance your checking account?

Accepted Answer

A) To check for evidence of identity theft 
B) To avoid over-drafting your account 
C) To get better at math 
D) To check for evidence of identity theft AND to make sure you don't overdraw your account 
A) To check for evidence of identity theft 
B) To avoid over-drafting your account 
C) To get better at math 
D) To check for evidence of identity theft AND to make sure you don't overdraw your account

Question 13

Credit unions are owned by members who make deposits.

Accepted Answer

A) True 
 B)False

Question 14

Elena is a college freshman and needs a checking account.What type of financial institution should she choose?

Accepted Answer

A) Credit union 
B) Commercial bank 
C) Savings institution 
D) IRS 
A) Credit union 
B) Commercial bank 
C) Savings institution 
D) IRS

Question 15

An example of proper planning is to link your checking account to either your savings account or to a credit card at the same financial institution to prevent costly overdraft fees in the event you inadvertently write a check for more than is in your account.

Accepted Answer

A) True 
 B)False

Question 16

What are 529 plans?

Accepted Answer

A) Qualified tuition plans 
B) Prepaid tuition plans 
C) College savings plans 
D) Both prepaid tuition plans and college savings plans 
A) Qualified tuition plans 
B) Prepaid tuition plans 
C) College savings plans 
D) Both prepaid tuition plans and college savings plans

Question 17

The FDIC for banks and NCUSIF for credit unions insure savings accounts up to what amount?

Accepted Answer

A) $50,000 
B) $100,000 
C) $200,000 
D) $250,000 
A) $50,000 
B) $100,000 
C) $200,000 
D) $250,000

Question 18

Banks are required by law to send you a statement regarding your checking account.

Accepted Answer

A) True 
 B)False

Question 19

You can use the money in a 529 plan for all except

Accepted Answer

A) tuition. 
B) transportation to and from college. 
C) room and board. 
D) books and mandatory fees. 
A) tuition. 
B) transportation to and from college. 
C) room and board. 
D) books and mandatory fees.

Question 20

Which of the following financial institutions qualify as a financial intermediary?

Accepted Answer

A) A commercial bank 
B) A credit union 
C) A savings institution 
D) All of the options are correct. 
A) A commercial bank 
B) A credit union 
C) A savings institution 
D) All of the options are correct.

What is a credit union?

________ were established for people who have a common bond.

With a reverse mortgage,upon the death of the last surviving homeowner,if there is negative equity in the home,the survivors will owe money to the bank.

Why should you look at your checking account statements?

There are three major types of consumer financial institutions: commercial banks,credit unions,and savings institutions.

Debit cards

Accounts that are opened in the dependent life stage include

Which best defines a 529 plan?

A ________ is an account designed to encourage saving for future college expenses and is legally known as a "qualified tuition plan."

What is a debit card?

Electronic bill paying allows you to

Why is it good to balance your checking account?

Credit unions are owned by members who make deposits.

Elena is a college freshman and needs a checking account.What type of financial institution should she choose?

An example of proper planning is to link your checking account to either your savings account or to a credit card at the same financial institution to prevent costly overdraft fees in the event you inadvertently write a check for more than is in your account.

What are 529 plans?

The FDIC for banks and NCUSIF for credit unions insure savings accounts up to what amount?

Banks are required by law to send you a statement regarding your checking account.

You can use the money in a 529 plan for all except

Which of the following financial institutions qualify as a financial intermediary?

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

What is a credit union?

________ were established for people who have a common bond.

With a reverse mortgage,upon the death of the last surviving homeowner,if there is negative equity in the home,the survivors will owe money to the bank.

Why should you look at your checking account statements?

There are three major types of consumer financial institutions: commercial banks,credit unions,and savings institutions.

Debit cards

Accounts that are opened in the dependent life stage include

Which best defines a 529 plan?

A ________ is an account designed to encourage saving for future college expenses and is legally known as a "qualified tuition plan."

What is a debit card?

Electronic bill paying allows you to

Why is it good to balance your checking account?

Credit unions are owned by members who make deposits.

Elena is a college freshman and needs a checking account.What type of financial institution should she choose?

An example of proper planning is to link your checking account to either your savings account or to a credit card at the same financial institution to prevent costly overdraft fees in the event you inadvertently write a check for more than is in your account.

What are 529 plans?

The FDIC for banks and NCUSIF for credit unions insure savings accounts up to what amount?

Banks are required by law to send you a statement regarding your checking account.

You can use the money in a 529 plan for all except

Which of the following financial institutions qualify as a financial intermediary?

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