Personal Finance Quiz Ch. 1

Which of the following will likely provide the most expensive loans?

a payday loan company

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 70 days. What is the most that he is liable for?

$238

When you select a financial services provider, you may find all of the following to be major factors except _______________

company logo

Earning interest on previously earned interest is called ________________

compounding

A commercial bank is the same thing as a credit union.

false

Each year, check writing is being used more often.

false

Making transactions using a credit card will immediately reduce your bank/checking account balance.

false

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

false

Web-only banks offer both online transactions and face-to-face transactions.

false

A credit card is a type of ________________

loan/borrowing

A disadvantage of saving in a certificate of deposit is the penalty for early withdrawal.

true

A loan from a pawnshop will be more expensive than one from a bank.

true

Amy found a check that she was given for her birthday nine months earlier. Her bank should refuse to cash the check.

true

Commercial banks and credit unions are both are financial institutions; however, they are different types of organizations.

true

When Flo says she's "going to the bank," she may be implying that she is visiting a credit union or stopping at an ATM.

true