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Brandon lost his debit card. When he realized it was gone, his account had $238 in unauthorized charges. Since he was embarrassed about his loss, he didn't contact his financial institution for 45 days. What is the most that he is liable for?


A) $0
B) $50
C) $188
D) $238
E) $500

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The Truth in Savings Act requires financial institutions to disclose the interest rate on loans.

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The text discusses several types of bonds. Which bond is purchased at face value and has two components to the rate of interest earned-a fixed rate and an inflation rate that changes twice a year?


A) Series E
B) Series EE
C) Series HH
D) Series I
E) Series Q

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When you select a financial services provider, you should ask all of the following questions except


A) Will I be able to borrow money if I need it?
B) How can I minimize the cost of checking and payment services?
C) Where can I get the best return on my savings?
D) All of the questions above should be asked.
E) None of these questions are needed.

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If you think that rates will fall in the future, you should buy a long-term CD to lock in your rate now.

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An asset management account is an all-in-one account that is also called a cash management account.

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A savings account is also known as a demand deposit.

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A time deposit is also known as


A) A checking account.
B) A trust.
C) A loan.
D) A savings account.
E) All of these are time deposits.

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Why are some financial service operations referred to as financial supermarkets?


A) They offer a combination of services from one source.
B) Customers can receive cash and a receipt.
C) They have many locations, like supermarkets.
D) They are often located in supermarkets or convenience stores.
E) Their prices are similar to those in a supermarket.

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Justin needs to have access to his money in five months. The best option for his savings is a


A) Series EE bond.
B) Money market account.
C) Five-year certificate of deposit.
D) Series I bond.
E) Six-month certificate of deposit.

Correct Answer

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Smishing is a scam that uses email spam or pop-up messages to deceive you into revealing your credit card number, social security number, passwords, or other private information.

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The Truth in Savings Act requires financial institutions to disclose the _____ on savings accounts.


A) annual percentage yield (APY)
B) compounding
C) liquidity
D) tax rate
E) safety certification

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The FDIC insures a depositor's savings account up to $200,000 per insured financial institution.

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Another name for a regular savings account is a


A) Certificate of deposit.
B) Checking account.
C) Money market account.
D) Money market fund.
E) Passbook or statement account.

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Karen wanted a certificate of deposit that would definitely be available the entire length of time until maturity. She would NOT want to consider a


A) Bump-up CD.
B) Callable CD.
C) Portfolio CD.
D) Promotional CD.
E) Indexed CD.

Correct Answer

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When Angela wanted to provide financial security for her dependents, she considered purchasing a specific type of account at a


A) Credit card company.
B) Investment company.
C) Life insurance company.
D) Finance company.
E) Payday loan company.

Correct Answer

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Common payment choices for everyday activities include all of the following except


A) Cash.
B) Check.
C) Credit card.
D) Short-term loan.
E) Debit card.

Correct Answer

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The insurance coverage provided by the FDIC for a savings account is ________ per depositor per insured financial institution.


A) $50,000
B) $100,000
C) $150,000
D) $250,000
E) $500,000

Correct Answer

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Which of the following primarily provides loans for home purchases?


A) A credit card company
B) An investment company
C) A life insurance company
D) A mortgage company
E) A payday loan company

Correct Answer

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Zach wants to open an account, but he doesn't know which kind is appropriate. He is interested in earning a higher interest rate and knows that he might not be able to write many checks from his account. In addition, he plans to keep at least $1,000 in his account so he can avoid paying a fee. He definitely wants to have federal deposit insurance. What kind of account should he open?


A) A certificate of deposit
B) An interest-earning checking account
C) A money market account
D) A money market fund
E) A regular savings account

Correct Answer

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Showing 61 - 80 of 114

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