Question 1

Opal earned 6% in her savings account.If she is in the 25% tax bracket,what is her after-tax savings rate of return?

Accepted Answer

A)   2%
B)   2.5%
C)   4.5%
D)   5%
E)   25%

Question 2

Making transactions using a credit card will immediately reduce your bank balance.

Accepted Answer

A) True 
 B)False

Question 3

Lydia found a check that she was given for her birthday nine months earlier.Her bank should refuse to cash the check.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is correct about inflation?

Accepted Answer

A)   If inflation is 7% and your rate of return in your savings account is 4%, you will experience an overall gain in buying power.
B)   As inflation rates increase, interest rates offered to savers decrease.
C)   Inflation does not affect interest rates for savings accounts.
D)   In order to increase buying power, you need to earn a rate higher than the rate of inflation.
E)   If you earn 5% and inflation is 10%, your buying power will increase.

Question 5

Another name for a regular savings account is a

Accepted Answer

A)   Certificate of deposit.
B)   Checking account.
C)   Money market account.
D)   Money market fund.
E)   Passbook or statement account.

Question 6

When Flo says she's "going to the bank," she may be implying that she is visiting a credit union or stopping at an ATM.

Accepted Answer

A) True 
 B)False

Question 7

Aidan wants to be able to complete his payment transactions electronically.Which of the following tools should he use?

Accepted Answer

A)   A debit card.
B)   An online payment.
C)   A stored-value card.
D)   A smart card.
E)   All of these.

Question 8

Given the information here,what should Jordan's adjusted checkbook balance be?

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Adjusted checkbook balance = ...

Question 9

A benefit of investing in a certificate of deposit is the penalty for early withdrawal.

Accepted Answer

A) True 
 B)False

Question 10

List three types of nondeposit institutions.

Accepted Answer

The following are all nondepos...

Question 11

Brenda lost her debit card.When she realized it was gone,her account had $173 in unauthorized charges.She notified her financial institution within two days.How much is she potentially liable for?

Accepted Answer

A)   $0.
B)   $25.
C)   $50.
D)   $173.
E)   This cannot be determined with the information provided.

Question 12

Define two of the following:
a.Time deposit
b.Demand deposit
c.Trust
d.Cash management account

Accepted Answer

Definitions follow:
a.Time deposit-provi...

Question 13

Logan paid a bill with a special form.He received this form at his financial institution and had to pay the amount of the check plus a fee.He used a

Accepted Answer

A)   Certified check.
B)   Cashier's check.
C)   Merchant's check.
D)   Personal check.
E)   Traveler's check.

Question 14

Which of the following is NOT correct?

Accepted Answer

A)   Check 21 decreases the processing time for checks.
B)   Check 21 allows a substitute check to be an equivalent of the original check.
C)   A substitute check is a digital reproduction of the original paper check.
D)   Check 21 increases the fees banks can charge for checking accounts.
E)   All of these are correct.

Question 15

I bonds earn interest based on a fixed rate plus inflation.

Accepted Answer

A) True 
 B)False

Question 16

Due to Check 21,the processing time for checks has increased.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following refers to the opportunity to withdraw money on short notice without incurring a loss in value?

Accepted Answer

A)   Compounding
B)   Liquidity
C)   Minimum deposit
D)   Rate of return
E)   Safety

Question 18

Which of these two checking accounts is a better deal?
 Why?
a.A regular checking account with a monthly fee of $10 when the balance is lower than $300.
b.An interest-bearing checking account (paying 1%)with a monthly charge of $5 when the balance is lower than $100.

Accepted Answer

The interest-bearing account has a lower...

Question 19

The FDIC insures a depositor's savings account up to $200,000 per insured financial institution.

Accepted Answer

A) True 
 B)False

Question 20

Neil invested $10,000 in a certificate of deposit earning 9% per year.Unfortunately,he needed to withdraw it before the maturity date.If the penalty was two months of interest,what was his total penalty?

Accepted Answer

A)   $0
B)   $9
C)   $75
D)   $150
E)   $900

Exam 4: Financial Services: Savings Plans and Payment Account

Define two of the following: a.Time deposit b.Demand deposit c.Trust d.Cash management account

Correct AnswerverifiedDefinitions follow:a.Time deposit-provi...View AnswerShow Answer

List three types of nondeposit institutions.

Correct AnswerverifiedThe following are all nondepos...View AnswerShow Answer

Given the information here,what should Jordan's adjusted checkbook balance be?

Correct Answerverified Adjusted checkbook balance = ...View AnswerShow Answer

Which of the following is NOT correct?

Correct AnswerverifiedShow Answer

Another name for a regular savings account is a

Correct AnswerverifiedShow Answer

Brenda lost her debit card.When she realized it was gone,her account had $173 in unauthorized charges.She notified her financial institution within two days.How much is she potentially liable for?

Correct AnswerverifiedShow Answer

The FDIC insures a depositor's savings account up to $200,000 per insured financial institution.

Correct AnswerverifiedShow Answer

When Flo says she's "going to the bank," she may be implying that she is visiting a credit union or stopping at an ATM.

Correct AnswerverifiedShow Answer

A benefit of investing in a certificate of deposit is the penalty for early withdrawal.

Correct AnswerverifiedShow Answer

Which of the following refers to the opportunity to withdraw money on short notice without incurring a loss in value?

Correct AnswerverifiedShow Answer

Due to Check 21,the processing time for checks has increased.

Correct AnswerverifiedShow Answer

Making transactions using a credit card will immediately reduce your bank balance.

Correct AnswerverifiedShow Answer

Which of these two checking accounts is a better deal? Why? a.A regular checking account with a monthly fee of $10 when the balance is lower than $300. b.An interest-bearing checking account (paying 1%)with a monthly charge of $5 when the balance is lower than $100.

Correct AnswerverifiedThe interest-bearing account has a lower...View AnswerShow Answer

Opal earned 6% in her savings account.If she is in the 25% tax bracket,what is her after-tax savings rate of return?

Correct AnswerverifiedShow Answer

Logan paid a bill with a special form.He received this form at his financial institution and had to pay the amount of the check plus a fee.He used a

Correct AnswerverifiedShow Answer

Lydia found a check that she was given for her birthday nine months earlier.Her bank should refuse to cash the check.

Correct AnswerverifiedShow Answer

Neil invested $10,000 in a certificate of deposit earning 9% per year.Unfortunately,he needed to withdraw it before the maturity date.If the penalty was two months of interest,what was his total penalty?

Correct AnswerverifiedShow Answer

Aidan wants to be able to complete his payment transactions electronically.Which of the following tools should he use?

Correct AnswerverifiedShow Answer

I bonds earn interest based on a fixed rate plus inflation.

Correct AnswerverifiedShow Answer

Which of the following is correct about inflation?

Correct AnswerverifiedShow Answer

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Definitions follow:
a.Time deposit-provi...
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The following are all nondepos...
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Adjusted checkbook balance = ...
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The interest-bearing account has a lower...
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