Banking and Finance

d. All of the above

. Which of the following can be used for security for a loan? a. Account receivable b. Stock c. Real estate d. All of the above

c. Safe deposit boxes

What is generally maintained in the vault of a bank? a. Precious metals b. Safe files c. Safe deposit boxes d. None of the above

d. FDIC

What is the name of the organization that insures a customer's money in a bank? a. IRS b. NCUA c. SCC d. FDIC

d. All of the above

Which of the following instruments is negotiable? a. Bank draft b. Cashier's check c. Certified check d. All of the above

c. Credibility

Which of the following is NOT one of the 5 C's of lending? a. Capacity b. Capital c. Credibility d. Character

a. $1,250 that the Johnsons have in a savings account

Which of the following is an example of a liquid asset? a. $1,250 that the Johnsons have in a savings account b. A balance of $400 the Smiths have on their Visa card c. $65,000 mortgage the Harris' have on their home d. All of the above are liquid assets

c. The smallest payment that will keep a credit card holder in good standing with the lender

Which of the following is the best definition of minimum payment on a credit card? a. A low introductory payment offered by the lender for a few months until the card holder has established good credit b. A fee that must be paid whether the card is used or not c. The smallest payment that will keep a credit card holder in good standing with the lender d. The interest on the purchases that were made on the credit card

d. All of the above are warning signs

Which of the following would be a potential warning sign of debt problems? a. Increasing the balance on your credit card each month b. Borrowing more to pay old debts c. Going over your credit limit on credit cards d. All of the above are warning signs

b. $290.00

You are hired as a car washer who earns $7.25 per hour. You work Tuesday-Saturday, 9-6 with one hour for lunch. Find the gross weekly pay for the job. Note: lunch time is unpaid. a. $300.00 b. $290.00 c. $362.50 d. $232.00

d. $327.29

Your checking account balance was $203.47 yesterday. Today your employer deposited your $389.53 pay directly to your checking account. On the way home from work, you made an ATM withdrawal of $100.00. After dinner you wrote checks for $72.14, $107.99, and $47.16. What is the total of the withdrawals from your account for today? a. $217.29 b. $227.29 c. $389.53 d. $327.29

c. Debit card

________ transfers money directly from buyer's bank account to merchant's account. a. Cash card b. Credit card c. Debit card d. Smart card

b. False

Interest is the price paid for using other's money. a. True b. False

b. False

. It is illegal for a bank to make different check-cashing rules for customers and noncustomers. a. True b. False

c. When the borrower dies

A reverse mortgage is repaid... a. Over the term of the loan, typically 30 years b. In one single large payment at a specified point c. When the borrower dies d. By the bank to the borrower

a. $103.32

A store in Chicago, Illinois, advertised a 65" HD3D TV for $1,475.99. What is the sales tax if the combined state and city tax rate is 7%? a. $103.32 b. $1579.31 c. $100.15 d. $109.96

a. 4.5 years

According to the Rule of 72, if the interest rate you earn is 16%, your money will double in value in a. 4.5 years b. 6 years c. 16 years d. 12 years

d. a salon haircut

An example of a service is ________. a. a car b. college books c. a goal d. a salon haircut

d. 4%

Anna's savings account pays simple interest. She began with a deposit of $1,000. At the end of one year, she had earned $40 in interest. What is the interest rate on Anna's account? a. 1% b. 2% c. 3% d. 4%

c. $2.10 per quart

Brad Bodine is buying Rentoil Motor Oil and wants to know the unit price. He buys a box containing 5 quarts for $10.50. The unit price is: a. $10.50 per can b. $5.00 per quart c. $2.10 per quart d. $2.10 per ounce

b. 25-28 percent

Generally speaking, housing costs should not exceed ________ of gross monthly income. a. 10-15 percent b. 25-28 percent c. 36-40 percent d. 50 percent

c. There is less money available to lend

If banks must hold more money in reserve, a. The money supply will expand b. There is more money available to lend c. There is less money available to lend d. Both a and b, but not c

a. Personal assets

Items of value are called: a. Personal assets b. Allowance c. Liabilities d. Expenses

b. $108

Jack borrowed $1,050 and paid the loan back in 12 equal payments of $96.50. What is the finance charge for this loan? a. $58 b. $108 c. $1,158 d. None of the above

a. October 12

Macy agreed to repay a $500 loan at 9% interest in 90 days. She made the loan on July 14. What is the due date of the loan? a. October 12 b. October 13 c. October 14 d. October 15

c. Automatic deposit

Money electronically added to your checking account is called a(n) a. Deposit b. Automatic withdrawal c. Automatic deposit d. Certificate of deposit

b. $56.00

On January 1, the cost of a product is $50.00. If inflation for the year is 12 percent, what does the product cost on December 31 of that year? a. $60.00 b. $56.00 c. $54.00 d. $51.20

b. Charge far more interest than a typical credit card interest charge

Payday loans: a. Are the best way for young students to build up a good credit rating b. Charge far more interest than a typical credit card interest charge c. Are available from your local bank d. Are a cheap way to borrow money, since it is for such a short term

c. $265.71

See question 29. What is the balance of your checking account at the end of today? a. $593.00 b. $365.71 c. $265.71 d. None of the above

a. $250,000 per depositor

The FDIC and the NCUA insures deposits up to a limit of ________. a. $250,000 per depositor b. $100,000 per account c. $150,000 for two accounts d. $200,000 all accounts

b. 12

There are ________ federal reserve banks. a. 6 b. 12 c. 13 d. 15