Question 1

The money market fund offered by investment companies is a relatively liquid financial service.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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

Accepted Answer

A)  passbook 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 bank

Question 4

All-in-one accounts may be used by financial institutions to simplify the maze of financial services and to attract customers.

Accepted Answer

A) True 
 B)False

Question 5

Which CD pays earnings based on the stock market?

Accepted Answer

A)  bump-up
B)  indexed
C)  callable
D)  global
E)  promotional

Question 6

When interest rates are rising,a person would be best served by:

Accepted Answer

A)  short-term savings instruments.
B)  long-term savings instruments.
C)  short-term loans.
D)  variable-rate loans.
E)  certificates of deposit.

Question 7

Which of the following types of financial institutions provide Federal Deposit Insurance (FDIC) coverage?

Accepted Answer

A)  credit card companies and finance companies
B)  credit unions and brokerage firms
C)  mortgage companies,commercial banks,and credit unions
D)  commercial banks,credit unions,and savings and loans
E)  commercial banks,credit card companies,and credit unions

Question 8

A endorsement is especially useful when you are depositing checks.

Accepted Answer

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

Question 9

A restrictive endorsement will usually include the words "for deposit only."

Accepted Answer

A) True 
 B)False

Question 10

Demand deposits are another term for checking accounts.

Accepted Answer

A) True 
 B)False

Question 11

Which is a CD that offers a higher rate for every six months you are invested?

Accepted Answer

A)  bump-up
B)  indexed
C)  callable
D)  global
E)  promotional

Question 12

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.

Question 13

A regular savings account usually offers a higher rate of return to savers than other savings plans.

Accepted Answer

A) True 
 B)False

Question 14

Savings compounded ____________ would have the highest effective yield.

Accepted Answer

A)  daily
B)  annually
C)  semi-annually
D)  monthly
E)  weekly

Question 15

Which of the following represent the use of credit?

Accepted Answer

A)  demand deposits
B)  mortgage
C)  ATM withdrawals
D)  time deposits
E)  debit card

Question 16

A certificate of deposit is usually considered to be very liquid.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a deposit institution?

Accepted Answer

A)  life insurance company
B)  commercial bank
C)  savings and loan association
D)  credit union
E)  mutual savings bank

Question 18

The face value of a Series EE U.S.Savings Bond refers to the:

Accepted Answer

A)  original purchase price
B)  redemption value at maturity
C)  effective yield of the bond
D)  monthly interest accrual amount
E)  taxable portion of the accrued interest

Question 19

Your bank statement shows a balance of $670.Your checkbook register shows a balance of $462.You earned interest of $2 and had a service charge of $4.There are no outstanding deposits.What is the amount of outstanding checks?

Accepted Answer

A)  $210
B)  $208
C)  $180
D)  $12
E)  $6

Question 20

What is the term used to refer to the yield on a long term bond issued by the federal government?

Accepted Answer

A)  prime rate
B)  discount rate
C)  mortgage rate
D)  treasury bond rate
E)  corporate bond rate

Exam 5: Financial Services: Savings Plans and Payment Accounts

Your bank statement shows a balance of $670.Your checkbook register shows a balance of $462.You earned interest of $2 and had a service charge of $4.There are no outstanding deposits.What is the amount of outstanding checks?

Correct AnswerverifiedShow Answer

When interest rates are rising,a person would be best served by:

Correct AnswerverifiedShow Answer

A certificate of deposit is usually considered to be very liquid.

Correct AnswerverifiedShow Answer

Which of the following represent the use of credit?

Correct AnswerverifiedShow Answer

A personal check with guaranteed payment is called a:

Correct AnswerverifiedShow Answer

A restrictive endorsement will usually include the words "for deposit only."

Correct AnswerverifiedShow Answer

What is the term used to refer to the yield on a long term bond issued by the federal government?

Correct AnswerverifiedShow Answer

The profits from a mutual savings bank go to the:

Correct AnswerverifiedShow Answer

Savings compounded ____________ would have the highest effective yield.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All-in-one accounts may be used by financial institutions to simplify the maze of financial services and to attract customers.

Correct AnswerverifiedShow Answer

The face value of a Series EE U.S.Savings Bond refers to the:

Correct AnswerverifiedShow Answer

Which is a CD that offers a higher rate for every six months you are invested?

Correct AnswerverifiedShow Answer

Which of the following types of financial institutions provide Federal Deposit Insurance (FDIC) coverage?

Correct AnswerverifiedShow Answer

The money market fund offered by investment companies is a relatively liquid financial service.

Correct AnswerverifiedShow Answer

Which CD pays earnings based on the stock market?

Correct AnswerverifiedShow Answer

Which of the following is not a deposit institution?

Correct AnswerverifiedShow Answer

A endorsement is especially useful when you are depositing checks.

Correct AnswerverifiedShow Answer

A regular savings account usually offers a higher rate of return to savers than other savings plans.

Correct AnswerverifiedShow Answer

Demand deposits are another term for checking accounts.

Correct AnswerverifiedShow 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

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