Question 1

In which life stage do you usually get a 529 plan?

Accepted Answer

A)  Independent 
B)  Empty nest 
C)  Dependent 
D)  Adolescent 
A)  Independent 
B)  Empty nest 
C)  Dependent 
D)  Adolescent

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 4

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 5

_________________ 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 6

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 these 
A)  A commercial bank 
B)  A credit union 
C)  A savings institution 
D)  All of these

Question 7

Share accounts can earn interest,just like checking accounts.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Where is a checking account referred to as a "shared draft account"?

Accepted Answer

A)  Commercial bank 
B)  Credit union 
C)  Any bank 
D)  With your spouse 
A)  Commercial bank 
B)  Credit union 
C)  Any bank 
D)  With your spouse

Question 10

What is a credit union?

Accepted Answer

A)  A nonprofit 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 nonprofit 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 11

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 12

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 13

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 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

If a bank 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 17

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 18

Internet banking allows you to

Accepted Answer

A)  Check the balances in your accounts 
B)  Deposit checks 
C)  Deposit cash 
D)  All of these 
A)  Check the balances in your accounts 
B)  Deposit checks 
C)  Deposit cash 
D)  All of these

Question 19

Which is not one of the three major financial institutions?

Accepted Answer

A)  Insurance companies 
B)  Commercial banks 
C)  Credit unions 
D)  Savings institutions 
A)  Insurance companies 
B)  Commercial banks 
C)  Credit unions 
D)  Savings institutions

Question 20

Anna recently opened a savings account and made three deposits in the amounts of $100,000,$65,000,and $200,000.If the Great Depression was to occur again and the bank closed,how much money would Anna be insured for?

Accepted Answer

A)  $365,000 
B)  $200,000 
C)  $250,000 
D)  $100,000 
A)  $365,000 
B)  $200,000 
C)  $250,000 
D)  $100,000

In which life stage do you usually get a 529 plan?

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

Which is not a benefit of overdraft protection?

Reconciling a checking account is

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

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

Share accounts can earn interest,just like checking accounts.

A prepaid tuition plan does not include

Where is a checking account referred to as a "shared draft account"?

What is a credit union?

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

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

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

What are the types of checking accounts?

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

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

A 529 plan is:

Internet banking allows you to

Which is not one of the three major financial institutions?

Anna recently opened a savings account and made three deposits in the amounts of $100,000,$65,000,and $200,000.If the Great Depression was to occur again and the bank closed,how much money would Anna be insured for?

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Exam 4: Financial Instruments and Institutions

In which life stage do you usually get a 529 plan?

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

Which is not a benefit of overdraft protection?

Reconciling a checking account is

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

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

Share accounts can earn interest,just like checking accounts.

A prepaid tuition plan does not include

Where is a checking account referred to as a "shared draft account"?

What is a credit union?

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

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

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

What are the types of checking accounts?

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

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

A 529 plan is:

Internet banking allows you to

Which is not one of the three major financial institutions?

Anna recently opened a savings account and made three deposits in the amounts of $100,000,$65,000,and $200,000.If the Great Depression was to occur again and the bank closed,how much money would Anna be insured for?

Money Matters: Values, Vision, Mission, and You

Time Value of Money

Planning and Budgeting

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