Personal Finance Ch. 4 Quiz

Which of the following is NOT required when writing a check? Multiple Choice a.) A driver's license number b.) The amount of check written in words c.) The date written d.) The name of person or organization receiving payment e.) A signature

a.) A driver's license number

ATM stands for Multiple Choice a.) Automatic teller machine. b.) Available token machine. c.) Automatic taking machine. d.) Automatic token machine. e.) Available teller machine.

a.) Automatic teller machine.

Nora bought a used car and was told that she needed a personal check with guaranteed payment. She obtained a Multiple Choice a.) None of the these. b.) Certified check. c.) Cashier's check. d.) Traveler's check. e.) Money order.

b.) Certified check

All of the following are deposit institutions except Multiple Choice a.) A commercial bank. b.) A credit union. c.) A finance company. d.) A savings and loan association. e.) A mutual savings bank.

c.) A finance company.

Zoe signed the back of her check with the words "for deposit only." She used a(n) Multiple Choice a.) Individual account. b.) Special endorsement. c.) Restrictive endorsement. d.) Deposit ticket. e.) Blank endorsement.

c.) Restrictive endorsement.

Which of the following is a type of electronic payment? Multiple Choice a.) Traveler's check b.) Certified check c.) Smart card d.) Interest-earning checking account e.) Money order

c.) Smart card

Jennifer purchased a prepaid card for transit fares and highway tolls. What kind of card did she purchase? Multiple Choice a.) Mobile transfer. b.) An online payment. c.) A smart card. d.) A stored-value card. e.) A debit card.

d.) A stored-value card.

A joint account with Sara and John allows Multiple Choice a.) Only Sara to write checks. b.) Only John to write checks. c.) All of these. d.) John and Sara to both write checks on the account. e.) Sara or John to complete a signature card.

d.) John and Sara to both write checks on the account.

When Angela wanted to provide financial security for her dependents, she considered purchasing a product that would provide income replacement in the event of her untimely death and also provide a savings/investment component while she is alive. Which company would she most likely do business with? Multiple Choice a.) Investment company. b.) Payday loan company. c.) Credit card company. d.) Life insurance company. e.) Finance company.

d.) Life insurance company.

Common payment choices for everyday activities include all of the following except Multiple Choice a.) Credit card. b.) Debit card. c.) Cash. d.) Short-term loan. e.) Check.

d.) Short-term loan

Margaret signed the back of her check with the words "pay to the order of Penelope." She used a(n) Multiple Choice a.) Restrictive endorsement. b.) Individual account. c.) Deposit ticket. d.) Special endorsement. e.) Blank endorsement.

d.) Special endorsement.

All of the following are non-deposit institutions except Multiple Choice a.) A finance company. b.) An investment company. c.) A credit card company. d.) A life insurance company. e.) A credit union.

e.) A credit union.

An all-in-one account that provides a complete financial services program for a single fee is known as Multiple Choice a.) A trust. b.) A loan. c.) A checking account. d.) A savings account. e.) An asset management account.

e.) An asset management account.

A credit card is a type of Multiple Choice a.) Checking account. b.) Trust. c.) Savings account. d.) Cash account. e.) Loan/borrowing.

e.) Loan/borrowing

If a check is lost or stolen, you should use a Multiple Choice a.) Stale check. b.) Deposit ticket. c.) Blank endorsement. d.) Bank statement. e.) Stop-payment order.

e.) Stop-payment order