Question 1

Which one of the following savings plans is not covered by federal deposit insurance?

Accepted Answer

A)  Account at a savings and loan
B)  Regular checking account at a commercial bank
C)  Money market account at a commercial bank
D)  Money market fund with an investment company
E)  Certificate of deposit at a commercial bankF) A) and C)
G) A) and E)

Question 2

Which one of the following is true for an interest-earning account?

Accepted Answer

A)  It usually requires a minimum balance.
B)  It is an account that charges a fee for each check written.
C)  It does not earn interest.
D)  It does not require a minimum balance.
E)  None of these are true.F) B) and D)
G) A) and B)

Question 3

A higher rate of return would result from a savings account that had which of the following compounding frequencies?

Accepted Answer

A)  Daily
B)  Weekly
C)  Biweekly
D)  Monthly
E)  YearlyF) A) and C)
G) A) and B)

Question 4

A common service offered by investment companies is:

Accepted Answer

A)  interest-bearing checking accounts.
B)  variable-rate loans.
C)  credit card accounts.
D)  savings bonds.
E)  money market funds.F) B) and D)
G) A) and B)

Question 5

A personal check with guaranteed payment is called a:

Accepted Answer

A)  traveler's check.
B)  bank draft.
C)  certified check.
D)  money order.
E)  cashier's check.F) A) and E)
G) All of the above

Question 6

Which of the following represent the use of credit?

Accepted Answer

A)  Demand deposits
B)  Home mortgage
C)  ATM withdrawals
D)  Time deposits
E)  Debit cardF) All of the above
G) C) and D)

Question 7

Savings compounded ________ would have the highest effective yield.

Accepted Answer

A)  daily
B)  annually
C)  semiannually
D)  monthly
E)  weeklyF) A) and E)
G) C) and E)

Question 8

What is the rate that banks charge large corporations for loans called?

Accepted Answer

A)  Prime rate
B)  Discount rate
C)  Mortgage rate
D)  Treasury bond rate
E)  Corporate bond rateF) C) and D)
G) None of the above

Question 9

Based on the following information,what amount would be subtracted from the bank statement side of the bank reconciliation? ATM withdrawal $20; Outstanding checks $154; Interest $1.25; Deposit in transit $75.

Accepted Answer

A)  $154.00
B)  $20.00
C)  $174.00
D)  $155.25
E)  $75.00F) D) and E)
G) C) and D)

Question 10

In the bank reconciliation process,ATM withdrawals should be:

Accepted Answer

A)  added to the bank statement balance.
B)  subtracted from the bank statement balance.
C)  added to the checkbook balance.
D)  subtracted from the checkbook balance.
E)  ignored.F) All of the above
G) B) and D)

Question 11

Demand deposits are another term for:

Accepted Answer

A)  savings accounts.
B)  savings bonds.
C)  checking accounts.
D)  certificates of deposit.
E)  investment accounts.F) C) and E)
G) B) and E)

Question 12

Which one of the following will help to avoid identity theft?

Accepted Answer

A)  Download apps from any app store.
B)  Avoid sharing personal data on social media.
C)  Use public Wi-Fi networks.
D)  Avoid anti-spam software.
E)  Mail bill payments from home mailbox.F) B) and C)
G) A) and E)

Question 13

Which of the following is organized as a corporation and owned by stockholders?

Accepted Answer

A)  Credit unions
B)  Investment companies
C)  Mutual savings banks
D)  Savings and loan associations
E)  Commercial banksF) A) and C)
G) A) and E)

Question 14

Which of the following types of financial institutions are insured by federal government agencies?

Accepted Answer

A)  Credit card companies and finance companies
B)  Credit unions and investment firms
C)  Mortgage companies,banks,and credit unions
D)  Banks,credit unions,and savings and loans associations
E)  Banks,credit card companies,and credit unionsF) All of the above
G) A) and B)

Question 15

Which one of the following will help to avoid identity theft?

Accepted Answer

A)  Put your Social Security number on checks.
B)  Put your full name on checks.
C)  Put your full account number on checks when paying a bill.
D)  Use passwords involving both letters,special characters,and numbers.
E)  Check your credit report once every three years.F) A) and D)
G) None of the above

Question 16

The Federal Deposit Insurance Corporation insures savings plans at:

Accepted Answer

A)  credit unions and mutual savings banks.
B)  commercial banks and savings and loan associations.
C)  investment companies and finance companies.
D)  insurance companies and credit unions.
E)  commercial banks and credit unions.F) A) and B)
G) C) and D)

Question 17

Describe mobile transfer apps and how they work.

Accepted Answer

Apps for mobile payments are available t...

Question 18

In recent years,membership in credit unions has:

Accepted Answer

A)  become more difficult due to higher taxes.
B)  become more flexible.
C)  been limited to government employees.
D)  declined due to poor credit union management.
E)  stayed at about the same level.F) A) and B)
G) A) and C)

Question 19

Josh earned $84 on $1,200 invested in a high yield money market account.He is taxed at 22% of his earnings.What is the after-tax yield on his investment?

Accepted Answer

Josh earned 7% ($84/$1,200)on his high y...

Question 20

What are the main types of deposit institutions and nondeposit institutions used by consumers?

Accepted Answer

The major types of deposit institutions ...

Exam 5: Financial Services: Savings Plans and Payment Accounts

Which one of the following is true for an interest-earning account?

Correct AnswerverifiedShow Answer

Describe mobile transfer apps and how they work.

Correct AnswerverifiedApps for mobile payments are available t...View AnswerShow Answer

In recent years,membership in credit unions has:

Correct AnswerverifiedShow Answer

What is the rate that banks charge large corporations for loans called?

Correct AnswerverifiedShow Answer

Which of the following represent the use of credit?

Correct AnswerverifiedShow Answer

What are the main types of deposit institutions and nondeposit institutions used by consumers?

Correct AnswerverifiedThe major types of deposit institutions ...View AnswerShow Answer

Based on the following information,what amount would be subtracted from the bank statement side of the bank reconciliation? ATM withdrawal $20; Outstanding checks $154; Interest $1.25; Deposit in transit $75.

Correct AnswerverifiedShow Answer

Savings compounded ________ would have the highest effective yield.

Correct AnswerverifiedShow Answer

A higher rate of return would result from a savings account that had which of the following compounding frequencies?

Correct AnswerverifiedShow Answer

Which of the following is organized as a corporation and owned by stockholders?

Correct AnswerverifiedShow Answer

Which of the following types of financial institutions are insured by federal government agencies?

Correct AnswerverifiedShow Answer

Which one of the following will help to avoid identity theft?

Correct AnswerverifiedShow Answer

The Federal Deposit Insurance Corporation insures savings plans at:

Correct AnswerverifiedShow Answer

A personal check with guaranteed payment is called a:

Correct AnswerverifiedShow Answer

A common service offered by investment companies is:

Correct AnswerverifiedShow Answer

Josh earned $84 on $1,200 invested in a high yield money market account.He is taxed at 22% of his earnings.What is the after-tax yield on his investment?

Correct AnswerverifiedJosh earned 7% ($84/$1,200)on his high y...View AnswerShow Answer

Demand deposits are another term for:

Correct AnswerverifiedShow Answer

Which one of the following savings plans is not covered by federal deposit insurance?

Correct AnswerverifiedShow Answer

Which one of the following will help to avoid identity theft?

Correct AnswerverifiedShow Answer

In the bank reconciliation process,ATM withdrawals should be:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Apps for mobile payments are available t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The major types of deposit institutions ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Josh earned 7% ($84/$1,200)on his high y...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified