Question 1

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 2

In banking terminology,CD stands for

Accepted Answer

A)  Compact disk 
B)  Cash on deliver 
C)  Cash deposit 
D)  Certificate of deposit 
A)  Compact disk 
B)  Cash on deliver 
C)  Cash deposit 
D)  Certificate of deposit

Question 3

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 4

Which of the following is not included in the dependent life stage?

Accepted Answer

A)  Certificate of deposit 
B)  College savings plan 
C)  Student loans 
D)  Savings account 
A)  Certificate of deposit 
B)  College savings plan 
C)  Student loans 
D)  Savings account

Question 5

A negotiable instrument has to include all of the following except:

Accepted Answer

A)  Specific amount of money 
B)  Payable to someone or some company 
C)  Bank's address 
D)  The date 
A)  Specific amount of money 
B)  Payable to someone or some company 
C)  Bank's address 
D)  The date

Question 6

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 these 
A)  Commercial bank 
B)  Credit union 
C)  Savings institution 
D)  All of these

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

Tristan is a freshman in high school and is looking for a way to save money for college.What strategy would be best for him to use?

Accepted Answer

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

Question 10

One of the first accounts opened in the dependent life stage is:

Accepted Answer

A)  Savings 
B)  Checking 
C)  Mortgage 
D)  IRA 
A)  Savings 
B)  Checking 
C)  Mortgage 
D)  IRA

Question 11

Why is it good to balance your checking account?

Accepted Answer

A)  To check for evidence of identity theft 
B)  So you don't overdraw 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)  So you don't overdraw 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 12

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 13

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 these 
A)  Fees and interest rates 
B)  Locations and hours 
C)  Accounts offered 
D)  All of these

Question 14

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 15

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 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

What is usually not an advantage of a commercial bank?

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

Question 19

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 20

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

A 529 plan is used to save for:

In banking terminology,CD stands for

A reverse mortgage:

Which of the following is not included in the dependent life stage?

A negotiable instrument has to include all of the following except:

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

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

What are 529 plans?

Tristan is a freshman in high school and is looking for a way to save money for college.What strategy would be best for him to use?

One of the first accounts opened in the dependent life stage is:

Why is it good to balance your checking account?

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:

Overdraft fees _________________.

What is a debit card?

In what life stage should you start an IRA?

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

What is usually not an advantage of a commercial bank?

Which best defines a 529 plan?

With most auto loans,what is used as collateral?

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

Exam 4: Financial Instruments and Institutions

A 529 plan is used to save for:

In banking terminology,CD stands for

A reverse mortgage:

Which of the following is not included in the dependent life stage?

A negotiable instrument has to include all of the following except:

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

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

What are 529 plans?

Tristan is a freshman in high school and is looking for a way to save money for college.What strategy would be best for him to use?

One of the first accounts opened in the dependent life stage is:

Why is it good to balance your checking account?

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:

Overdraft fees _________________.

What is a debit card?

In what life stage should you start an IRA?

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

What is usually not an advantage of a commercial bank?

Which best defines a 529 plan?

With most auto loans,what is used as collateral?

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