Question 1

A regular savings account at a credit union is called a ________ account.

Accepted Answer

A)  share
B)  NOW
C)  club
D)  certificate
E)  money market

Question 2

A regular savings account usually offers a higher rate of return to savers than a certificate of deposit.

Accepted Answer

A) True 
 B)False

Question 3

Which one of the following financial service providers should be avoided,because the interest rates charged on loans can be over 100% a year?

Accepted Answer

A)  Pawnshop
B)  Credit union
C)  Savings and loan association
D)  Mutual savings bank
E)  Life insurance company

Question 4

An asset management account provides a complete financial services program for a single fee.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements regarding debit and credit card liability is correct?

Accepted Answer

A)  A credit card carries more risk of loss to the cardholder.
B)  A debit card carries more risk of loss to the cardholder.
C)  There is no cardholder liability if either type of card is lost.
D)  The Federal Government insures losses on credit but not debit cards.
E)  The Federal Government insures losses on debit but not credit cards.

Question 6

Prepaid debit cards are used for:

Accepted Answer

A)  Social Security benefits.
B)  school lunches.
C)  highway tolls.
D)  telephone service.
E)  All of these

Question 7

Joan Martin expects interest rates to decline over the next few months.To achieve her long-term financial goals,she will trade off liquidity for a higher return by using a:

Accepted Answer

A)  regular savings account.
B)  interest-bearing checking account.
C)  five-year certificate of deposit.
D)  money market account.
E)  money market fund.

Question 8

An asset management account typically offers the following service:

Accepted Answer

A)  online banking.
B)  checking account.
C)  a line of credit.
D)  mobile apps.
E)  All of these

Question 9

The profits from a mutual savings bank go to the:

Accepted Answer

A)  creditors.
B)  loan applicants.
C)  stockholders.
D)  depositors.
E)  community in which it operates.

Question 10

Which of the following is not a "High-Cost Financial Service Provider"?

Accepted Answer

A)  Pawnshops
B)  P2P lending intermediaries
C)  Payday loan companies
D)  Rent-to-own centers
E)  Car title loan companies

Question 11

Comparison of earnings for different savings plans can best be accomplished using the:

Accepted Answer

A)  discounted present value.
B)  compounding frequencies.
C)  net present value.
D)  annual percentage yield.
E)  after-tax rate of return.

Question 12

Which of the following is a user-owned,nonprofit,cooperative financial institution?

Accepted Answer

A)  Life insurance company
B)  Investment company
C)  Mortgage company
D)  Pawnshop
E)  Credit union

Question 13

The more frequently the compounding occurs,the less a person will earn on a savings account.

Accepted Answer

A) True 
 B)False

Question 14

A ________ endorsement consists of the words "for deposit only" followed by your signature and account number and is especially useful when you are depositing checks.

Accepted Answer

A)  blank
B)  restrictive
C)  common
D)  special
E)  documented

Question 15

Using a debit card to make purchases means you are spending your own funds.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following institutions makes loans based on the value of tangible possessions,such as jewelry and other valuables?

Accepted Answer

A)  Life insurance company
B)  Finance company
C)  Mortgage company
D)  Pawnshop
E)  Investment company

Question 17

An all-purpose account offered by investment brokers that provides a complete financial services program is a(n) :

Accepted Answer

A)  NOW account.
B)  asset management account.
C)  EFT account.
D)  mutual fund.
E)  money market account.

Question 18

A trust has the purpose of:

Accepted Answer

A)  solving a person's financial problems.
B)  obtaining low-interest loans.
C)  handling daily money management activities.
D)  managing the assets of a person.
E)  improving a person's budgeting skills.

Question 19

Which is a true of investing in Series EE U.S.Savings Bonds?

Accepted Answer

A)  The interest earned is always exempt from federal income taxes.
B)  Federal income tax on earnings may be deferred until the bonds are redeemed.
C)  The interest rate on these bonds is adjusted twice a year for inflation.
D)  Series EE Bonds must be purchased for set amounts over $100.
E)  They can be redeemed any time without forfeiting interest.

Question 20

This type of financial institution is known to frequently offer lower fees and lower loan rates:

Accepted Answer

A)  Commercial bank
B)  Savings and loans association
C)  Mutual savings bank
D)  Credit union
E)  Investment companies

Exam 5: Financial Services: Savings Plans and Payment Accounts

Using a debit card to make purchases means you are spending your own funds.

Correct AnswerverifiedShow Answer

The profits from a mutual savings bank go to the:

Correct AnswerverifiedShow Answer

Which of the following is a user-owned,nonprofit,cooperative financial institution?

Correct AnswerverifiedShow Answer

An asset management account typically offers the following service:

Correct AnswerverifiedShow Answer

Prepaid debit cards are used for:

Correct AnswerverifiedShow Answer

A trust has the purpose of:

Correct AnswerverifiedShow Answer

Comparison of earnings for different savings plans can best be accomplished using the:

Correct AnswerverifiedShow Answer

Which of the following is not a "High-Cost Financial Service Provider"?

Correct AnswerverifiedShow Answer

This type of financial institution is known to frequently offer lower fees and lower loan rates:

Correct AnswerverifiedShow Answer

The more frequently the compounding occurs,the less a person will earn on a savings account.

Correct AnswerverifiedShow Answer

A regular savings account usually offers a higher rate of return to savers than a certificate of deposit.

Correct AnswerverifiedShow Answer

Which one of the following financial service providers should be avoided,because the interest rates charged on loans can be over 100% a year?

Correct AnswerverifiedShow Answer

Joan Martin expects interest rates to decline over the next few months.To achieve her long-term financial goals,she will trade off liquidity for a higher return by using a:

Correct AnswerverifiedShow Answer

Which is a true of investing in Series EE U.S.Savings Bonds?

Correct AnswerverifiedShow Answer

A regular savings account at a credit union is called a ________ account.

Correct AnswerverifiedShow Answer

Which of the following institutions makes loans based on the value of tangible possessions,such as jewelry and other valuables?

Correct AnswerverifiedShow Answer

An all-purpose account offered by investment brokers that provides a complete financial services program is a(n) :

Correct AnswerverifiedShow Answer

An asset management account provides a complete financial services program for a single fee.

Correct AnswerverifiedShow Answer

A ________ endorsement consists of the words "for deposit only" followed by your signature and account number and is especially useful when you are depositing checks.

Correct AnswerverifiedShow Answer

Which of the following statements regarding debit and credit card liability is correct?

Correct AnswerverifiedShow Answer

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