personal finance mod 2

What is the FDIC and what does it do? a) The Federal Deposit Insurance Corporation is an independent federal agency created to promote public confidence and stability in the nation's banking system. b) The First Deposit Insurance Company insures first deposits made to a banking account. c) The Federal Deposit Inquiry Corporation investigates banks and other financial institutions. d) The Federal Daily Insurance Calculator is used to determine how much insurance is available on a daily basis to cover bank deposits.

a

You can move funds between accounts with online banking. a) true b) false

a

A check linked to your banking account typically has what parts of information or features? a) blanks for payment information b) routing/transit number c) account holder's information d) financial institution name and number e) account number f) check number g) relative's contact information

a b c d e f

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. a) utility bills like electricity b) video rentals and games c) cell phone bills d) credit card bills e) insurance premiums f) car loans g) dog grooming h) drive-through purchases at fast food places i) loans and mortgages j) monthly charges for cable services k) payment for the neighbor's son mowing your lawn l) popcorn and snacks at the theater

a c d e f i j

Choose all possible reasons for shopping online. a) It is easy to compare the same item on different websites. b) Online shopping is ALWAYS cheaper then any other way of shopping. c) You can check inventory to see if the item is in stock. d) ALL websites are trustworthy and give you the BEST deal. e) If you are using the same product model number, it will be the same item as in retail stores. f) You don't have to fight the crowds on busy shopping days. g) Many online merchants give free shipping on orders.

a c e f g

You can use your debit card to make purchases _____________________. Choose all correct responses. a) in person at a store b) only where credit cards are accepted c) over the phone d) only where cash is accepted e) for just 6 transactions a month f) if you have at least $500.00 in your associated account g) online

a c g

In considering purchasing products, what are some good guidelines to follow? Choose all that apply. a) Get opinions from friends and relatives who have bought similar products. b) Buy when you want to, even if it is a bad time financially because of debt. c) Any deal advertised on the internet or TV is a good deal. d) Shop around comparing different deals for the same item. e) Carefully read and make sure you understand any contract you sign. f) Make sure you know the policies for returns and refunds. g) Don't travel far to save a few cents on the exact same product. h) Make sure you know what the final price will be, including any extended warranty plans and fees. i) It is okay to max out your credit card if it is something you want but don't need. j) If you think the price is lower, but it rings up higher --too bad!

a d e f g h

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. a) check-cashing fee when cashing a check from a different bank b) passes for the bank's parking lot c) teller fee for every transaction a teller helps you with d) monthly or annual account fees e) ATM transaction fee f) overdraft fee g) non-sufficient funds fee h) membership fees at credit unions i) telephone fees for calling into your financial institution j) minimum balance fee

a d e f g h j

returned check fee

a fee charged when you deposit a check from someone, and it is returned because the check has insufficient funds

transaction fee

a fee charged when you exceed a set number of transactions in a month for deposits or withdrawals

ATM fee

a fee charged when you use an ATM outside your bank's network

wire transfer fee

a fee charged when you wire money from your account to someone else's account

overdraft fee

a fee charged when you write a check and your account does not have enough money to cover the check

minimum balance fee

a fee charged when your account balance goes below a certain minimum balance

membership fee

a fee that a credit union charges its members to open an account

A debit card purchase is much like a credit card purchase except _____________________________. a) a debit card purchase can't be returned b) a debit card purchase transfers money directly from your checking or savings account c) a debit card purchase has extra fees for processing d) a debit card purchase takes longer to process

b

A direct withdrawal is an electronic transaction similar to direct deposit, except a direct deposit ________________________. a) comes from your employer and a direct withdrawal goes to your bank b) deposits money into your account while a direct withdrawal takes money out of your account c) must be in increments of $100.00 and direct withdrawals can be for any amount d) can only deposit money into your account once a month while a direct withdrawal can be processed repeatedly during that period

b

A financial institution will check a person's background and other information because they want to make sure that _____________________________. a) that person will be a good person to advertise for them b) that person will be a responsible bank account customer c) that person will deposit a lot of money

b

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. a) True b) False

b

If you are using your personal computer to carry out banking transactions, it is important that no one else knows your _____________. a) age b) passwords c) real name d) employer

b

Income only includes money from your job. a) true b) false

b

Since being created in 1933, the FDIC has caused participants to lose how much money? a) Millions of dollars. b) No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933. c) Thousands of dollars. d) Hundreds of dollars.

b

What are the three main types of financial institutions available to help you manage your finances? a) department stores, grocery stores, car dealers b) banks, credit unions, and thrifts c) savings and loans, mortgage companies, banks d) car loan stores, payday loans, loan sharks

b

What is the source of funding used by the FDIC to pay insured depositors of a failed bank? a) premiums that are paid by bank investors and depositors b) premiums already paid by insured banks and interest earnings on its investment portfolio of U.S. Treasury securities c) State and federal governments pitch in money to back the FDIC d) income taxes and sales taxes

b

What type of expense would your daily coffee purchase be? a) Housing Expense b) Food Expense c) Additional Expense d) None of the above

b

When making purchases, the more expensive option will always bring more contentment. a) true b) false

b

Why are financial institutions safe places to keep your money? a) They have a big vault with steel doors. b) They are regulated by federal guidelines and are in business to make money for their depositors, members, and/or stock holders. c) They have an alarm system. d) They have cameras monitoring all transactions.

b

Choose all statements that describe a "thrift." a) not for profit b) a financial institution c) a mutually held corporation with decisions made by depositors and borrowers d) also known as a savings and loan association e) specializes in making money off of mortgages and personal loans to its members f) invests in capital markets to make money for its customers g) deposits insured by the National Credit Union Administration h) limited by law as to the amount of assets it can use for commercial loans

b c d e h

Choose all things the banking institution may require or review when setting up your account. a) your family pet b) Social Security number c) your credit history d) legal ability to open an account e) your food preferences f) your clothing g) a photo identification

b c d g

Electronic banking or electronic funds transfer can include which of the following? Choose all that apply. a) cashing a paycheck at a drive-through bank window b) automatic insurance bill drafted off your account monthly c) direct deposit of your payroll to your bank account d) passbook savings withdrawal at a teller window e) depositing cash into your checking account at a teller window f) electronic check conversion at a store for payment for merchandise g) writing a check and mailing it to pay a bill h) phone-activated transfer from one account to another i) using your personal computer to transfer money from your checking account to your savings account j) ATM withdrawals

b c f h i j

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. a) lists of your favorite kinds of candy b) statements of bills paid and to-be paid c) old ads from the local paper d) wills and health directives e) tax information and forms f) financial records g) cookies for a late night snack h) paper for recycling i) bank statements

b d e f i

Another way to make sure you know what is happening with your money and financial obligations is to _________________________________. a) Get friends to look over all your information and make suggestions. b) Wait and pay your bills on the latest possible date. c) Use computer software or internet services offered by your banking institution to track deposits and payments. d) Keep lots of money in your wallet so you will be ready for any kind of emergency.

c

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 __________________. a) the police department b) FBI or CIA c) Better Business Bureau d) a friend

c

Most ATMs that accept debit cards for transactions also require you to enter your PIN as well. What is a PIN? a) Personal Indemnification Numeral b) People's Index Number c) Personal Identification Number d) Property Identification Number

c

People enjoy using online banking because it is ____________________. a) fun b) the only way you can make changes to your bank account c) convenient and saves time d) secretive and cheap

c

The "Paradox of Prosperity" according to Ron Blue means which of the following: a) When you are very prosperous you must hire others to help manage your goods. b) When we think of prosperity we must think "how much is enough." c) Being prosperous does not always give us the freedom we think it should. d) Those who are prosperous outwardly are really poor inwardly.

c

To keep your account active, you will need to _______________. a) recommend your bank to others b) pay bills online c) make deposits

c

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? a) The store took a picture of your check and will call your bank to verify payment later. b) The store let you have your purchase for free. c) The store used an EFT system to automatically withdraw the money from your account. d) The check was no good and was returned because of insufficient funds.

c

Select the item(s) that would be considered a "want." a) Buying groceries b) Paying your water bill c) Buying a cell phone d) Buying a second pair of tennis shoes for sports

c d

Why is it a good idea for consumers to know what is in the food and products they buy? Choose all correct answers. a) because some people want to copy and sell the same product b) because grocery stores don't want to have to personally tell customers the ingredients c) because some people need low-salt products d) because some people are on special diets and need to know specific percentages of certain items e) because people are nosy f) because some people cannot have foods produced in plants that also process peanuts g) because caloric intake is important for some people to know h) because some people are allergic to some foods (such as peanuts) i) because it makes the consumer feel smart j) because it takes up room on the label

c d f g h

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. a) Prints currency for other countries. b) Accepts deposits from the general public. c) Holds deposits for the federal government. d) Provides oversight of Secret Service protection for past presidents. e) Acts as the federal government's fiscal agent. f) Receives revenues for the federal government. g) Makes payments for the federal government. h) Makes business loans to individuals.

c e f g

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. a) check b) bank book c) check register d) deposit slip

d

In a financial institution that is federally insured, deposited money is safe from ____________________. a) mold, mildew, and floods b) crooks, loan sharks, and relatives c) atomic blasts, tsunamis, and volcanic eruptions d) theft, loss, and fire

d

What event in American history had a profound effect on modern-day banking regulations and policy? a) The Great Awakening b) The Great Dust Bowl c) The Great Divide d) The Great Depression

d

Which of the following would be a good answer to the question, "how much is enough?" a) Constantly upgrading my electronics, clothes, and car should be enough. b) Since Christians in third world countries have very little, I should also do without many essentials. c) Whatever I need I should be able to buy. d) Purchasing items to meet your real needs and then splurging occasionally to buy something special.

d

Online financial institutions offer all services that "brick and mortar" institutions offer, EXCEPT these: a) fees for certain transactions/services b) savings accounts c) CDs d) branch manager offices to sit down and discuss your account in e) a teller working at a walk-up office f) checking accounts

d e

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. a) grocery stores, lawn services, medical services b) school systems, utilities, car repair c) police departments, snow removal, fire and rescue d) highway systems, toll roads, water service e) phone service, television service, health insurance

e

Why is using a credit card a good idea when making a purchase? Choose the best answer. a) Credit cards don't charge any fees or interest. b) Using a credit card makes you look more important. c) Credit cards have your name on them. d) Using a credit card gives you more time to pay it off if you are low on cash. e) It makes it easy to return the product and to dispute a sale that is questionable.

e

You should not buy products when you

feel pressured or are tempted to buy on impulse

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

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

Deuteronomy 31:6 tells us the Lord will not __________ you or __________ you.

leave; forsake

Choose all of the listed ideas that are helpful for making a large purchase.

- Make a spending plan outlining purchasing options. - Save and plan ahead so you won't buy on impulse and incur debt. - Wait for sales or rebates. - Ignore peer pressure to overspend or buy something you don't need. - Use the best alternative to pay without adding any fees or high interest.

Choose all legitimate consumer rights that are generally accepted by most people.

- right to be heard - right to be informed - right to fair compensation - right to a healthy environment - right to choose - right to safety

Laura bought a laptop four years ago, and she needs to replace it with a new one. The one she is looking at which fits into her budget costs $499.00 and will perform all that she needs it to do. Another laptop with a bigger screen and other options costs $699.00, but will not perform any faster or do anything more than the cheaper one can do. The store offers a service plan that protects against product defects and accidental damage for $99.00. What is the best decision for Laura?

Buy the $499 laptop with the $99 service plan.

Last week Samantha had to get her refrigerator repaired for the fourth time. It is no longer under warranty and each visit from the repairman has been averaging $100.00 a visit. She can buy a new refrigerator at a local scratch and dent warehouse store for $599.00 with a 5-year warranty. She could pay for half of it with cash but would have to charge the rest on her credit card. However, she could pay that off in three months. What do you think is the best choice for her?

Buy the new refrigerator because of the high costs of repairs to her old one.

To make sure a building contractor can be expected to do a good job for you, be sure to check ____________________.

personal references and the Better Business Bureau

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

Direct Deposit is an easy and safe way to ensure your money goes to your bank account. a) True b) False

a

Direct deposit is one way to keep your personal finances in order. Direct deposit means ___________________________. a) your payroll check is deposited into your bank account on your regularly scheduled payday b) all deposits are directly sent to your bank account no matter where the money comes from c) you take your payroll check and deposit it into your account directly

a

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

a

In the 1970's under the Carter administration, the United States was plagued with __________________. a) high inflation and high unemployment b) mad cow disease and salmonella c) high purchasing and low gasoline prices d) low interest rates and high prices

a

Investment income includes dividends from stocks or bonds. a) true b) false

a

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

a

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 _____________________________. a) all of these answers are true b) being away from home and needing to know personal information (about health insurance, for instance) c) a robbery of important records or your computer d) a house fire or natural disaster that destroys all of your paper records

a

Some merchants will match the prices of their competitors to get your business. a) true b) false

a

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? a) Considering only cars that were his favorite color. b) Checking reviews for local dealerships. c) Checking EPA fuel costs and average mpg for models he was considering. d) Checking online for reviews of the most reliable car models. e) Considering what he could afford each month for payments, fuel, and maintenance.

a

The LIVE category is the biggest slice of the pie. a) true b) false

a

The first thing you need to do to open a bank account is to go through a process called ___________________. a) account verification b) contact information c) payment creation d) statement restitution

a

The present limit for insuring any account at participating banks through the FDIC is ________________. a) $250,000.00 b) $250.00 c) $25,000.00 d) $2,500.00

a

To keep up with your money in the bank, what is the best way to organize your accounts? a) Consolidate your accounts with separate allocations going to checking and savings. b) Have an account at every bank in town. c) Move your money around every few months, based on the best features offered by local banks. d) Keep all your money in a safe at home or under your mattress.

a

What important document should you monitor to help with cybersecurity? a) Bank Statements b) Grade Report c) Checking Account Register d) Vehicle Registration Card

a

Before buying an expensive item, what are some things you could do to make an informed decision?

- ask those you trust to make wise financial decisions for advice - make sure it is something you need or want - research online - decide in advance what you are willing to spend - review available product tests and performance records

The Federal Reserve System was established in [1946, 1933, 1791, 1913] and was the [ third, first, fourth, second] 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 [10-year charter, 20-year charter, 50-year charter, 30-year charter] by the passing of the McFadden Act of 1927. The Banking Act of 1933 established the [The Federal Reserve System, The Securities and Exchange Commission, The United States Mint, Federal Deposit Insurance Corporation] to protect the deposits of consumers against bank failure. [Some, All, Online banks, No] financial institutions are members of the Federal Reserve System today.

1913, third, 20, FDIC, some

Larry and Martha have an account set up at their credit union with $50 added to it each month from Martha's paycheck. She has been having this done each month for ten months. How much is in the account?

500$

Malware

Includes viruses and ransomware running on your device. It can take over the operation of your device and steal confidential information from your network.

Bob drives a used car that gets great gas mileage and so far he has not had to have any major repairs performed on the car. His mechanic told him the car should be good for at least another 2-3 years. Several of Bob's friends have new cars and have encouraged him to buy one, too. Bob just started a new job, and he is not sure if he will get to keep the job because of recent company layoffs. What do you suggest for Bob?

Keep the used car and make sure it is maintained regularly.

Trojan Horse

Malware disguised as a trusted source that convinces the user to open a link or an attachment and install itself.

Virus

Malware that spreads by users from an infected device to the rest of the devices on a network.

Phishing

Pretending to be someone you trust to get you to visit a fictitious site and enter private info.

Amanda wanted to buy some furniture for her new apartment. Because she was bringing most of her furniture from home, she only needed a sofa and two chairs. After carefully shopping at several furniture stores she found what she wanted. Below are the possible options for financing her purchase. She plans on paying the cost of the furniture off in three months. Decide which option would be the wisest choice for her.

Store Credit --if it is paid off in 3 months, the interest rate would not be a factor.

Samuel wants to go on a mission trip with his church youth group. The trip costs $1,700.00, and he has $900.00 saved. His parents will loan him the rest if he will do some repairs around the house before he goes on the trip at the end of the summer. What should he do?

Take his parents' offer and get started on the house repairs.

Spam

The unethical distribution of mass digital messages.

Consumers have rights related to the products they buy and the services they receive. Select all valid consumer rights listed below: a) the right to an explanation of all guarantees and warranty information about a product before purchasing b) the right to choose (and not be forced) to accept a certain company's product c) the right to be heard and to voice opinions about products and services d) the right to be informed about products and any potential hazards involved with the use of a product e) the right to buy anything online that is available in a store f) the right to a complete refund without any proof of purchase such as a receipt g) the right to be safe, and for all products and services to be safe h) the right to push in line and expect better service if you are a repeat shopper i) the right to double the compensation for bad service

a b c d g

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. a) exercise rooms and equipment for employee use at businesses b) stricter pollutant emissions ratings on automobiles c) no smoking in public areas such as hotel lobbies and businesses d) free food samples at grocery stores e) no smoking on airplanes f) free tickets to professional basketball games g) no smoking in restaurants h) strict emissions laws on coal-burning manufacturing plants

a b c e g h

Even though we should be careful with our money and valuables, what does the Bible say about the things of this world and wealth? a) "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 b) Make all the money you can because one day you may owe many people money. c) "Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal." -Matthew 6:19 Treasure and money is what life is all about. d) "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." e) The more money you can make, the more money you can give to the poor and sick. f) Make as much money as you can while you are healthy, because one day you may be sick and disabled. g) "For where your treasure is, there your heart will be also." -Matthew 6:21

a b c f

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) A bank is regulated to make sure it does not lend more money than it can safely cover with assets and depositors' monies. b) A bank has to maintain a certain ratio of how much it lends compared to its capital assets. c) A bank is insured by the FDIC and must follow its guidelines in order for its depositors to be covered against loss. d) A bank has to have a minimum of three tellers at every branch. e) A bank has to have a vault that is atomic bomb-proof. f) A bank has to abide by guidelines set up by the Federal Reserve System. g) A bank has to give its customers free checks. h) A bank has to have a minimum amount of capital holdings to do business.

a b c f h

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. a) It allows quick access to your money. b) It provides a safe place for your money. c) You are insured against losses up to the federal maximum amount. d) Money carries germs. e) It is a popular thing to do. f) It is cheaper than other possible alternatives. g) The government wants you to do it. h) Banks have good advertisements. i) It helps with establishing credit and getting loans.

a b c f i

What are some typical ways you can make withdrawals from a bank account? a) Withdraw cash at your local branch bank office. b) Use a debit card connected to your account to make purchases. c) Ask your friend for money. d) Use paper checks to pay for purchases or bills. e) Order money at a local convenience store.

a b d

Choose all statements that describe a "credit union." a) a financial institution b) accepts deposits to accounts like a bank c) open for anyone to join --no qualifications necessary d) member-owned e) profits and surpluses go to pay administrators and provide services for members f) provides services only to its members g) not for profit h) profits go to stock holders that are not members

a b d e f g

Why is it important for everyone with monetary and other assets to have a will? Choose all that apply. a) so loved ones and family will know what you want to do with your possessions and money once you have died b) because it makes sure all possessions and assets will go to those who have been specifically chosen to receive them c) because it looks good on a resume d) because it benefits those who you wish to bless after you are no longer able to help them in person e) because it helps keep lawyers in business f) so the state won't be in control of your estate g) because it relieves loved ones of added responsibility at your death h) because wills are fun to set up i) so others won't have to decide what j) is best to do with your possessions and money k) so the IRS won't take all your money to cover taxes

a b d f g i

Choose all statements that describe a "bank." a) accepts deposits to accounts b) invests in capital markets to make money for the institution as well as its customers c) not for profit d) member-owned e) regulated by the government f) charges fees and interest to pay administrators and stock holders g) offers all services for free h) a financial institution

a b e f h

Using the guidelines for spending covered in the lesson, choose all of the tips below that can help you be a wise shopper. a) Pay cash for items that cost less than $5.00. b) Be a good steward of all your money and possessions. c) Never save --spend every dime you have. d) Spend money just because your friends tell you to. e) Consider all the purchase options and costs before buying something expensive. f) When you make a mistake with spending money, learn from your mistakes. g) Bug your friends or parents for money when you don't have any to spend. h) Save money in special accounts so you are prepared for large expenditures. i) Track expenses so you will know where your money is going. j) Charge ALL purchases on a credit card.

a b e f h i

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. a) checking accounts b) Money Market Deposit Accounts c) annuities d) mutual funds e) passbook savings accounts f) bonds g) stocks h) certificate of deposits (CDs) i) IOUs j) statement savings accounts

a b e h j

Select the correct answer(s). God used the ant in Proverbs 6:5-8 to teach us: a) to acquire wisdom b) to hide some of our money in a safe place c) to put aside extra money from each paycheck into a savings account d) to not be lazy

a c d

A consumer is anyone who __________________________.

purchases products or services for personal use or possession

A checkbook ["register", "cover"] is a page or booklet that has ["rows and columns", "pictures"] for making entries similar to a ledger. As you write ["checks", "love notes", "letters"] or make ["withdrawals and deposits", "complaints"] , you can keep up with transactions that affect your account balance.

register; rows and columns; checks; withdrawals and deposits

Alexander Hamilton was the first Secretary of ["Housing and Urban Development", "State", "Defense", "the Treasury"] . He believed in a strong federal government with a centralized ["air conditioning system for the White House", "banking system", "legislature", "police force"] . Hamilton's critics attacked him by stating that a central government-run bank would be ["progressive and liberal", "a monopoly and unconstitutional", "inflationary and radical", "un-American and tyrannical"] . The first Bank of the United States was a ["government", "exclusive", "private", "public"] institution and was owned by a majority (70%) of ["foreign", "political", "government", "democratic"] investors.

treasury, banking system, monopoly and unconstitutional, private, foreign

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

you