Personal Finance Exam CH 4-5

A time deposit is also known as A.) A checking accountB.) A trustC.) A loanD.) A savings accountE.) All of these are time deposits D.) a savings account
An all-in-one account that provides a complete financial services program for a single fee is known asA.) A cash management accountB.) A checking accountC.) A trustD.) A loanE.) A savings account A.) A cash management account
When you select a financial services provider, you should ask all of the following questions except A.) will I be able to borrow money if i Need it?B.) How can I minimize the cost of checking and payment services?C.) Where can I get the best return on my savings?D.) All of these questions should be asked.E.) None of these questions are needed D.) All of these questions should be asked
Which of the following primarily provides loans for home purchases?A.) A credit card companyB.) An investment companyC.) A life insurance companyD.) A mortgage companyE.) A payday loan company D.) A mortgage company
Which of the following offers checking, savings, lending, and other services?A.) a commercial bankB.) a check-cashing outletC.) a pawnshopD.) a payday loan facilityE.) a rent-to-own center A.) a commercial bank
Another name for a regular savings account is a A.) Certificate of depositB.) Checking accountC.) Money market accountD.) Money market fundE.) Passbook or statement account E.) Passbook or statement account
A certificate of deposit that has different interest levels based on the stock market performance is called at A.) Bump-up CDB.) Callable CDC.) Portfolio CDD.) Promotional CDE.) Stock-Indexed CD E.) Stock-indexed CD
The text discusses several types of bonds. Which bond pays interest for 30 years that is exempt from state and local taxes?A.) Series EB.) Series EEC.) Series HHD.) Series IE.) Series Q B.) Series EE
The text discusses several types of bonds. Which bond is purchased at face value and has two components to the rate of interest earned— a fixed rate as well as a rate that adjusts twice a year for inflation?A.) Series EB.) Series EEC.) Series HHD.) Series IE.) Series Q D.) Series I
Earning interest on interest is calledA.) CompoundingB.) LiquidityC.) Minimum depositD.) Rate of returnE.) Safety A.) compounding
Which of the following provides deposit insurance for credit unions?A.) FDCUB.) FDICC.) NCUAD.) SAIFE.) None of these C.) NCUA
Quentin wants his retail purchases to be deducted directly from his checking account. Which of the following tools should he use?A.) a debit cardB.) a credit cardC.) A stored-value cardD.) PayNear meE.) all of these A.) a debit card
Kylie went to a post office to obtain a A.) certified checkB.) Cashier’s check C.) Money orderD.) Personal checkE.) Merchant’s check C.) Money order
Zoe signed the back of her check with the words “for deposit only” she used a(n)A.) blank endorsementB.) restrictive endorsementC.) deposit ticketD.) special endorsementE.) individual account B.) restrictive endorsement
Which of the following is NOT required when writing a check?A.) The amount of check written in wordsB.) The date writtenC.) A driver’s license numberD.) The name of person or organization receiving paymentE.) A signature C.) A driver’s license number
Many think that perhaps the greatest disadvantage of using credit isA.) the temptation to overspendB.) The convenience offered instead of using cashC.) the float from using creditD.) the increase in total purchasing powerE.) The increased satisfaction during present and future income periods A.) the temptation to overspend
Which of the following is an example of closed-and credited?A.) a mortgage loanB.) a department store credit cardC.) overdraft protectionD.) a bank line of creditE.) All of these are examples of closed-end credit A.) a mortgage loan
The periodic charge for the use of credit is?A.) a line of creditB.) a revolving check creditC.) InterestD.) a grace periodE.) Principal C.) Interest
If you miss payments on a home equity loan, you can lose yourA.) Savings accountB.) CarC.) HouseD.) Retirement AccountE.) Furnishings C.) House
The queston ” What are your assets and net worth?” relates to?A.) CharacterB.) CapacityC.) CapitalD.) CollateralE.) Conditions C.) Capital
The use of property or savings to secure a loan relates toA.) CharacterB.)CapacityC.) CapitalD.) CollateralE.) Conditions D.) collateral
The equal credit opportunity Act ECOA prohibits a lender from discriminating based on A.) Race B.) NationalityC.) AgeD.) SexE.) all of these are prohibited E.) all of these are prohibited
Which of the following is NOT a credit bureau?A.) ExperianB.) EquifaxC.) TransUnionD.) FICOE.) All of these are credit bureaus D.) FICO
The APR is the percentage cost of credit on a(n) _____ basisA.) monthlyB.) quarterlyC.) semi-annualD.) annualE.) life-of-loan D.) annual
Which of the following items should be shredded to protect yourself from identity theft?A.) magazinesB.) papers with personal infoC.) EnvelopesD.) privacy notices that are received with credit card statementsE.) Newspaper ads B.) papers with personal info
All of the followings are signs of financial trouble exceptA.) you use savings to pay for necessities such as food and utilitiesB.) you receive second and third payment due notices from creditorsC.) you exceed the credit limits on your credit cardsD.) you pay your credit card bills in full each periodE.) the total balance on your credit cards increases every month D.) you pay your credit card bills in full each period
Personal bankruptcy can be filed under which section(s) of the U.S. bankruptcy code?A.) Chapter 7B.) Chapter 11C.) Chapter 13D.) Chapters 7 and 13E.) Chapters 11 and 13 D.) Chapters 7 and 13
Following the signing of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, debtors seeking to erase all debts will have to wait __ year (s) from their last bankruptcy before they can file againA.) oneB.) threeC.) sevenD.) eightE.) ten D.) eight

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