Module 2 Test

The present limit for insuring any account at participating banks through the FDIC is ________________.

$250,000.00

Another way to make sure you know what is happening with your money and financial obligations is to _________________________________.

Use computer software or internet services offered by your banking institution to track deposits and payments.

Can a financial institution decide to close your account once it is open?

Yes, if you do not follow the rules and procedures of the institution.

According to 1 Timothy 6:6-10, it is those who are rich who will fall into temptation and into a snare. In other words, money is the root of all kinds of evil.

False

Cybersecurity and cyberattack mean the same thing.

False

Income only includes money from your job.

False

Prosperity to a Christian means material things.

False

When making purchases, the more expensive option will always bring more contentment.

False

What is the FDIC?

Federal Deposit Insurance Corporation

What type of expense would your daily coffee purchase be?

Food expense

We are reminded in Proverbs 3:5-5 to, "Trust in the Lord with all your___________ , and do not lean on your own ______________. In all your ways acknowledge Him, and He will make straight your paths."

Heart Understanding

Most ATMs that accept debit cards for transactions also require you to enter your PIN as well. What is a PIN?

Personal Identification Number

You receive an email that appears to be from your school or job, marked urgent, with the subject line "Fraudulent activity has been detected on your account." To find out more, you're asked to click and follow the link that is supposed to contain more information about how you can stop the fraud. You click the link and appears to be a trusted site that asks you to log in. What type of attack is this?

Phishing

Which of the following would be a good answer to the question, "how much is enough?"

Purchasing items to meet your real needs and then splurging occasionally to buy something special.

What event in American history had a profound effect on modern-day banking regulations and policy?

The Great Depression

Investment income includes dividends from stocks or bonds.

True

One reason God wants adults to work is so they can provide for themselves and not rely on others.

True

Some merchants will match the prices of their competitors to get your business.

True

The LIVE category is the biggest slice of the pie.

True

The world's culture advocates for being driven by success, significance, and security.

True

You can move funds between accounts with online banking.

True

A is a piece of paper with blanks that is filled out when an account holder wants to deposit either checks or cash into his/her account.

deposit slip

A direct withdrawal is an electronic transaction similar to direct deposit, except a direct deposit ________________________.

deposits money into your account while a direct withdrawal takes money out of your account

Building a good relationship with a financial institution can help an individual __________________.

establish a good credit rating

The cost of something is:

expenses

To keep your account active, you will need to _______________.

make deposits

One of the Five Wise Money Principles is to maintain __________.

margin

If you are using your personal computer to carry out banking transactions, it is important that no one else knows your _____________.

passwords

A financial institution will check a person's background and other information because they want to make sure that _____________________________.

that person will be a responsible bank account customer

Once someone opens an account at a financial institution, who is responsible for keeping up with the account balance, any fees deducted from the account, and any deposits or withdrawals?

the person who opens/owns the account

In a financial institution that is federally insured, deposited money is safe from ____________________.

theft, loss, and fire

What is the biggest barrier to having your identity stolen or compromised?

you

Direct deposit is one way to keep your personal finances in order. Direct deposit means ___________________________.

your payroll check is deposited into your bank account on your regularly scheduled payday

Even though we should be careful with our money and valuables, what does the Bible say about the things of this world and wealth?

-"For where your treasure is, there your heart will be also." -Matthew 6:21 -"But lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal." -Matthew 6:20 -"Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal." -Matthew 6:19 -"Jesus said to the rich young ruler, "You lack one thing: go, sell all that you have and give to the poor, and you will have treasure in heaven; and come, follow me."

What information should you record in your check register? Choose all applicable answers.

-amount of all written checks -check numbers of written checks -dates that go with any transactions -account balance -amount of any deposits

The Federal Reserve System was established in _______ and was the _______ attempt by the United States government to establish a central banking system. Unlike its two predecessors, the Federal Reserve System was not limited to a _____________ by the passing of the McFadden Act of 1927. The Banking Act of 1933 established the __________________ to protect the deposits of consumers against bank failure. ___________ financial institutions are members of the Federal Reserve System today.

-1913 -third -20-year charter -Federal Deposit Insurance Corporation -Some

Because banks are federally regulated, there are certain guidelines that they have to follow. What are some of these guidelines? Choose all that apply.

-A bank has to maintain a certain ratio of how much it lends compared to its capital assets. -A bank has to abide by guidelines set up by the Federal Reserve System. -A bank is insured by the FDIC and must follow its guidelines in order for its depositors to be covered against loss. -A bank is regulated to make sure it does not lend more money than it can safely cover with assets and depositors' monies. -A bank has to have a minimum amount of capital holdings to do business.

In considering purchasing products, what are some good guidelines to follow? Choose all that apply.

-Don't travel far to save a few cents on the exact same product. -Get opinions from friends and relatives who have bought similar products. -Make sure you know the policies for returns and refunds. -Make sure you know what the final price will be, including any extended warranty plans and fees. -Shop around comparing different deals for the same item. -Carefully read and make sure you understand any contract you sign.

Choose all possible reasons for shopping online.

-If you are using the same product model number, it will be the same item as in retail stores. -Many online merchants give free shipping on orders. -You don't have to fight the crowds on busy shopping days -It is easy to compare the same item on different websites. -You can check inventory to see if the item is in stock

Malware Phishing Trojan Horse Virus Spam

-Includes viruses -Pretending Malware disguised -Malware that spreads -The unethical

A bank may need what three items or information from you in order to verify your identity? Choose the three best answers.

-Individual Taxpayer Identification Number -Social Security number -a photo identification (driver's license, job ID, state voter card, or any similar ID)

There are several reasons why people should use a financial institution to help them with managing their money. Choose all valid reasons to have an account with a financial institution.

-It is cheaper than other possible alternatives. -You are insured against losses up to the federal maximum amount. -It provides a safe place for your money. -It helps with establishing credit and getting loans. -It allows quick access to your money.

What four responsibilities does the Federal Reserve System have that were also the responsibilities of its predecessors, the First and Second Bank of the United States? Choose all correct answers.

-Makes payments for the federal government. -Holds deposits for the federal government. -Receives revenues for the federal government. -Acts as the federal government's fiscal agent.

Choose all the descriptors that tell about the functions and policies related to thrifts.

-Their law limitations govern use of assets that can be used for commercial loans. -They are also known as savings and loan associations. -They specialize in savings accounts and making money off of mortgages and personal loans. -They are mutually held corporations with decisions made by depositors and borrowers.

Choose all the descriptors that tell about the functions and policies related to banks.

-They are for-profit corporations charging fees and interest. -They lend money to individuals and invest in capital markets to earn interest. -They accept deposits to accounts. -They are regulated by the government. -They have to abide by guidelines regarding capital holdings and ratios for lending money.

What are some typical ways you can make withdrawals from a bank account?

-Withdraw cash at your local branch bank office. -Use paper checks to pay for purchases or bills. -Use a debit card connected to your account to make purchases.

membership fee overdraft fee minimum balance fee ATM fee transaction fee returned check fee wire transfer fee

-a fee that a credit union -a fee charged when you write a check -a fee charged when you account balance -a fee charged when you use an ATM -a fee charged when you exceed a set number -a fee charged when you deposit a check from someone -a fee charged when you wire money

Choose all things the banking institution may require or review when setting up your account.

-a photo identification -Social Security number -legal ability to open an account -your credit history

Online financial institutions offer all services that "brick and mortar" institutions offer, EXCEPT these:

-a teller working at a walk-up office -branch manager offices to sit down and discuss your account in

A check linked to your banking account typically has what parts of information or features?

-account holder's information -check number -blanks for payment information -financial institution name and number -routing/transit number -account number

Electronic banking or electronic funds transfer can include which of the following? Choose all that apply.

-automatic insurance bill drafted off your account monthly -direct deposit of your payroll to your bank account -ATM withdrawals -using your personal computer to transfer money from your checking account to your savings account -electronic check conversion at a store for payment for merchandise -phone-activated transfer from one account to another

Why is it a good idea for consumers to know what is in the food and products they buy? Choose all correct answers.

-because some people are on special diets and need to know specific percentages of certain items -because some people cannot have foods produced in plants that also process peanuts -because some people are allergic to some foods (such as peanuts) -because caloric intake is important for some people to know -because some people need low-salt products

Choose all statements that describe a "bank."

-charges fees and interest to pay administrators and stock holders -invests in capital markets to make money for the institution as well as its customers -accepts deposits to accounts -regulated by the government -a financial institution

What forms or account records are associated with a checking account?

-check register -account statements -deposit slips -checks

Financial institutions do not offer their services for free. You may have a free checking account, and you may receive interest on the money you have in a savings account, CD, or money market account; however, the institution will charge you fees for a variety of reasons. Choose all charges discussed in the lesson that can be levied against an account owner.

-check-cashing fee when cashing a check from a different bank -overdraft fee -monthly or annual account fees -non-sufficient funds fee -ATM transaction fee -membership fees at credit unions -minimum balance fee

You can use your debit card to make purchases _____________________. Choose all correct responses.

-in person at a store -over the phone -online

Financial institutions may charge certain operational fees to help defray the costs of doing business. Choose the fees listed below that are common to financial institutions.

-insufficient funds fees -overdraft fees -minimum balance fees -transaction fees -returned check fees

Online financial services associated with a bank, credit union, or thrift may include which of the following services? Select all that apply.

-loans -savings account -credit lines -IRA (Individual Retirement Account) -Certificate of Deposit (CD) -debit cards -bill paying options -checking account

Choose all statements that describe a "credit union."

-member-owned -provides services only to its members -accepts deposits to accounts like a bank -not for profit -profits and surpluses go to pay administrators and provide services for members -a financial institution

Consumers have a right to a healthy environment. As a result, new laws and regulations have been enforced to create safer and healthier environments for all consumers. Choose any of the statements below that support this effort.

-no smoking in restaurants -no smoking in public areas such as hotel lobbies and businesses -exercise rooms and equipment for employee use at businesses -strict emissions laws on coal-burning manufacturing plants -stricter pollutant emissions ratings on automobiles -no smoking on airplanes

A checkbook _________is a page or booklet that has ________ for making entries similar to a ledger. As you write ___________or make _______________ , you can keep up with transactions that affect your account balance.

-register -rows and columns -checks -withdrawals and deposits

Why is it important for everyone with monetary and other assets to have a will? Choose all that apply.

-so loved ones and family will know what you want to do with your possessions and money once you have died -because it makes sure all possessions and assets will go to those who have been specifically chosen to receive them -because it relieves loved ones of added responsibility at your death -so others won't have to decide what is best to do with your possessions and money -because it benefits those who you wish to bless after you are no longer able to help them in person -so the state won't be in control of your estate

Choose all statements that describe a "thrift."

-specializes in making money off of mortgages and personal loans to its members -a financial institution -limited by law as to the amount of assets it can use for commercial loans -a mutually held corporation with decisions made by depositors and borrowers -also known as a savings and loan association

The FDIC insures different kinds of accounts at participating financial institutions. Choose all of the accounts or investing programs that are covered by the FDIC. (Check the FDIC website https://www.fdic.gov/edie/ Links to an external site. if you need help.)

-statement savings accounts -certificate of deposits (CDs) -checking accounts -Money Market Deposit Accounts -passbook savings accounts

What kind of items should be filed and organized in a central location at your home (such as in a special drawer or file cabinet)? Choose all that apply.

-tax information and forms -statements of bills paid and to-be paid -bank statements -financial records -wills and health directives

Alexander Hamilton was the first Secretary of ___________ . He believed in a strong federal government with a centralized __________ . Hamilton's critics attacked him by stating that a central government-run bank would be_______________ . The first Bank of the United States was a_____________ institution and was owned by a majority (70%) of______________ investors.

-the Treasury -banking system -a monopoly and unconstitutional -private -foreign

Consumers have rights related to the products they buy and the services they receive. Select all valid consumer rights listed below:

-the right to choose (and not be forced) to accept a certain company's product -the right to be safe, and for all products and services to be safe -the right to an explanation of all guarantees and warranty information about a product before purchasing -the right to be informed about products and any potential hazards involved with the use of a product -the right to be heard and to voice opinions about products and services

Select the correct answer(s). God used the ant in Proverbs 6:5-8 to teach us:

-to not be lazy -to acquire wisdom -to put aside extra money from each paycheck into a savings account

1. July 2 balance 2. July 3 balance 3. July 5 balance after deposit 4. July 5 balance 5. July 7 balance 6. July 9 balance 7. July 15 balance 8. July 20 balance 9. July 26 balance after deposit 10. July 31 ending balance 11. What checks are not on the bank statement but have been written? Enter the numbers separated with a comma. 12. What is the total amount of the checks outstanding (the checks that have not cleared the bank)?

1. 855.62 2. 832.29 3. 1332.29 4. 953.34 5. 828.34 6. 778.34 7. 563.78 8. 533.78 9. 733.78 10. 733.78 11. 2168,2172 12. 70.96

An example of a housing expense would be:

A mortgage payment or rental payment

Most financial institutions offer ATM or debit cards that allow you to withdraw funds from your account at places other than your institution. What is an ATM?

Automated Teller Machine

What important document should you monitor to help with cybersecurity?

Bank Statements

The "Paradox of Prosperity" according to Ron Blue means which of the following:

Being prosperous does not always give us the freedom we think it should.

If you are not satisfied with the service you receive from the same merchant over and over again, you can always report them to the __________________.

Better Business Bureau

Select the item(s) that would be considered a "want."

Buying a second pair of tennis shoes for sports Buying a cell phone

Stephen wanted to buy a used car when he started his new job. Which of the following ideas would NOT help him make the best decision?

Considering only cars that were his favorite color.

To keep up with your money in the bank, what is the best way to organize your accounts?

Consolidate your accounts with separate allocations going to checking and savings.

What does it mean to find the balance in a checking account?

It is the amount of money you have in your bank account

Why is using a credit card a good idea when making a purchase? Choose the best answer.

It makes it easy to return the product and to dispute a sale that is questionable.

Place the following in order according to what you have learned in the lesson. More fear and confusion | More Choices | Less Freedom | More Stuff

More Stuff More Choices More fear and confusion Less Freedom

Since being created in 1933, the FDIC has caused participants to lose how much money?

No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933.

We learned in the Ron Blue Institute video that the word stewardship literally means management. What area(s), other than our finances, are included in our journey of being good stewards? Choose all that apply.

Our relationships Our body Our time The teachings we receive Our talents

When you pay for your purchases at a store and you use a check, why do they sometimes give you your check back instead of keeping it?

The store used an EFT system to automatically withdraw the money from your account.

Why are financial institutions safe places to keep your money?

They are regulated by federal guidelines and are in business to make money for their depositors, members, and/or stock holders.

Banks and online banking are simply tools that we can use to be good stewards of our money.

True

Direct Deposit is an easy and safe way to ensure your money goes to your bank account.

True

If your browser is loading much slower than normal, that may be a sign of a cyberattack on your computer.

True

A debit card purchase is much like a credit card purchase except _____________________________.

a debit card purchase transfers money directly from your checking or savings account

The first thing you need to do to open a bank account is to go through a process called ___________________.

account verification

The first thing you need to do to open a new financial account is to go through a process called ________________.

account verification

One strategy for keeping up with important financial and personal information is to store that information on a secure website or in a safe deposit box. This would be important in case of _____________________________.

all of these answers are true

What are the three main types of financial institutions available to help you manage your finances?

banks, credit unions, and thrifts

Most financial institutions offer ATM or debit cards that allow you to withdraw funds from your account at places other than your institution. A debit card looks like a credit card but it works more like a ______________.

check

People enjoy using online banking because it is ____________________.

convenient and saves time

What kind of bills can usually be set up to draft out of your bank account so they will be paid every month on time? Choose all that apply.

credit card bills loans and mortgages insurance premiums car loans utility bills like electricity cell phone bills monthly charges for cable services

In the 1970's under the Carter administration, the United States was plagued with __________________.

high inflation and high unemployment

Don't buy on _____________or when you are__________ . Carefully check ____________for the best deal, and never __________to save a few pennies. You can shop ___________for items when local stores no longer have them in stock.

impulse under stress ads and prices travel far online

Because consumers have a right to choose among competing services instead of being forced to accept one company's service, often a certain service will be available from several different companies. What are some of these services? Choose the best answer.

phone service, television service, health insurance

In the video "John Steinbeck's Letter," Ron Blue mentions a quote by John Steinbeck that states "A strange species we are. We can stand anything that nature and God can throw at us save _________."

plenty

What is the source of funding used by the FDIC to pay insured depositors of a failed bank?

premiums already paid by insured banks and interest earnings on its investment portfolio of U.S. Treasury securities

When you match all payments, deposits, and other transactions listed in your bank statement to your personal checkbook register, that process is called ______________ a bank statement.

reconciling

A checkbook ______________ is a page or booklet that is used to keep up with all the transactions in your banking account.

register