Chapter 5 Review

One way to reduce payday loans if the use of Instant Financials app that allows employees access to: A. 100% of their pay on payday B. 50% of their pay each month they work C. 50% of their pay each week they work D. 50% of their pay each day they work E. 100% of their pay each day they work

50% of their pay each week they work

"Loading" of prepaid debit card may occur by: A. Cash or Check B. Direct Deposit C. Online Transfer D. Smartphone Check Photo E. All of These

All of These

An asset management account typically offers the following service: A. Online Banking B. Checking Account C. A Line of Credit D. Mobile Apps E. All of These

All of These

Prepaid debit cards are used for: A. Social Security Benefits B. School Lunches C. Highway Tolls D. Telephone Services E. All of These

All of These

What is the rate an individual will pay to borrow for the purchase of a new home called? A. Prime Rate B. Discount Rate C. Mortgage Rate D. Treasury Bond Rate E. Corporate Bond Rate

Mortgage Rate

In the bank reconciliation process, ATM withdrawals should be: A. Added to the bank statement balance B. Subtracted from the bank statement balance C. Added to the checkbook balance D. Subtracted from the checkbook balance E. Ignored

Subtracted from the checkbook balance

The storage of funds for future use is a purpose of ________, which include savings accounts and certificates of deposit. A. Trust B. Borrowing C. Credit Card D. Time Deposits E. Cash Checking

Time Deposits

What is the term used to refer to the yield on a long-term (20-year) debt obligation issued by the U.S. government? A. Prime Rate B. Discount Rate C. Mortgage Rate D. Treasury Bond Rate E. Corporate Bond Rate

Treasury Bond Rate

Tim Gleason has set up a legal agreement that allows the First State Bank of Orlando to manage funds set aside for his daughter's college education. What type of financial service is Tim using? A. Payment Service B. Savings Service C. Credit Service D. Trust Service E. Asset Management

Trust Service

Which of the following is way to reduce ATM fees? A. Withdraw larger amounts rather than making several smaller withdrawals B. Withdraw the minimum amount each time you withdraw C. Withdraw from ATMs closest to you regardless of which bank owns the ATM D. Withdraw from ATMs that can be used by customers from many different banks. E. Makes a separate withdrawal for each purchase to maintain a record of your spending.

Withdraw larger amounts rather than making several smaller withdrawals.