Personal Finance RETAKE
Katie has a savings account and a car loan from a not-for-profit financial institution owned by its members. She is probably a member of what type of financial institution? * A. Credit union B. Savings and Loan Association C. Investment club D. Commercial bank
A. Credit Union
Angela is selling her car through a newspaper advertisement. When she finds a buyer, she wants a form of payment which is guaranteed to be good. Which form of payment should she AVOID? A. Personal check B. Certified check C. Cashier's check D. Cash
A. Personal Check
When Alex received his paycheck, he planned to cash it at a check cashing store. You would advise him to cash it at his own bank if possible because: * A. They typically charge high fees B. They generally require a co-signer C. There is likely to be a ceiling on the size of the check he can cash D. They typically require a two-day waiting period before giving cash
A. They typically charge high fees
When banks require a minimum balance, a certain amount of money must be kept in the account at all times. * A. True B. False
A. True
Which financial product typically pays the highest rate of interest? A. Money market account B. Certificate of deposit C. Checking account D. Savings account
B. Certificate of Deposit
When a person is reconciling a checking account and notices that the balance in the checkbook register does not match the balance on the statement from the bank (or online statement), which action is it appropriate for the person to take first? * A. Deposit sufficient funds to adjust the balance in the checkbook to match the bank's balance B. Determine if checks already written have cleared, since this may affect the balance C. Adjust the balance in the checkbook so it is the same as the bank's balance D. Notify the bank in writing to adjust the statement
B. Determine if checks already written have cleared, since this may affect the balance
The Federal Reserve Bank is composed of the Board of Governors, Federal Open Marketing Committee, and 7 regional Federal Reserve banks. * A. True B. False
B. False
The most liquid type of financial product is: * A. Savings B. A money market account C. A checking account D. A certificate of deposit
C. A checking account
A person is depositing $20 in cash and a check for $50. On the checking account deposit slip, the person should: A. Include a reason that both cash and a check are being deposited B. Indicate what bank issued the check that is being deposited C. List the cash deposit separately from the check, as well as the total of the deposit D. Indicate the amount of money that is currently in the checking account as well as in the savings account to cover the check
C. List the cash deposit separately from the check, as well as the total of the deposit
Which of the following typically have the highest fees? A. Online bank B. Credit Union C. Payday lender D. Retail bank
C. Payday Lender
A bank Certificate of Deposit is a: A. Savings instrument that requires a deposit for a period of time during which the saver can withdraw money from the plan at any time without penalty B. Certificates of deposits that are issued for half the face value C. Savings instrument that requires a deposit for a specific period of time during which there is a penalty for withdrawals D. Cash deposit in a savings account that earns interest
C. Savings instrument that requires a deposit for a specific period of time during which there is a penalty for withdrawals
Interest is: * A. The amount added into your savings when you open a bank account B. A charge for the convenience of accessing money stored in your bank account C. The amount owed for borrowing money D. A charge for lending money to the bank
C. The amount owed for borrowing money
The best reason for depositing your money in a bank or credit union savings account rather than "under your mattress" is that: * A.Most savings accounts come with a free credit card B. Most savings accounts earn more interest than certificates of deposit C. Money in a savings account can be access any time during day and night D. Money deposited in savings accounts are FDIC insured
D. Money deposited in savings accounts are FDIC insured