Question 1

An asset management account combines a complete financial services program for a single fee.

Accepted Answer

A) True 
 B)False

Question 2

Based on the following information,what amount would be subtracted from the bank statement side of the checking account reconciliation? Service charge $12; Outstanding checks $145; Interest $3.50; Deposit in transit $80.

Accepted Answer

A)  $145.00
B)  $12.00
C)  $157.00
D)  $148.50
E)  $80.00

Question 3

Series EE bonds continue to earn interest for how many years?

Accepted Answer

A)  10
B)  20
C)  25
D)  30
E)  35

Question 4

Which CD attempts to attract savers with gifts or special rates?

Accepted Answer

A)  Bump-up
B)  Indexed
C)  Callable
D)  Global
E)  Promotional

Question 5

The purpose of a "special endorsement" is to:

Accepted Answer

A)  cash a check.
B)  deposit a check.
C)  transfer a check to another person.
D)  withdraw cash from your account.
E)  reduce the charge for service fees.

Question 6

Which of the following represent the use of credit?

Accepted Answer

A)  Demand deposits
B)  Mortgage
C)  ATM withdrawals
D)  Time deposits
E)  Debit card

Question 7

Which type of organization does not provide home mortgages?

Accepted Answer

A)  Federal credit unions
B)  Savings and loan associations
C)  Employee credit unions
D)  Mutual savings banks
E)  Check-cashing outlets

Question 8

When preparing a bank reconciliation,interest earned on your checking account is added to the bank statement balance.

Accepted Answer

A) True 
 B)False

Question 9

A higher rate of return would result from a savings account that had which of the following compounding frequencies?

Accepted Answer

A)  Daily
B)  Weekly
C)  Biweekly
D)  Monthly
E)  Yearly

Question 10

What type of account would be considered the most liquid?

Accepted Answer

A)  Certificate of deposit
B)  Regular savings account
C)  Money market account
D)  U.S.savings bond
E)  Share of stock

Question 11

In the bank reconciliation process,total fees should be:

Accepted Answer

A)  added to the bank statement balance.
B)  subtracted from the bank statement balance.
C)  added to the checkbook balance.
D)  subtracted from the checkbook balance.
E)  ignored.

Question 12

Which of the following doesnot offer deposit services?

Accepted Answer

A)  Life insurance company
B)  Commercial bank
C)  Savings and loan association
D)  Credit union
E)  Mutual savings bank A

Question 13

In recent years,membership in credit unions has:

Accepted Answer

A)  become more difficult due to higher taxes.
B)  become more flexible.
C)  been limited to government employees.
D)  declined due to poor credit union management.
E)  stayed at about the same level. B

Question 14

Your bank statement shows a balance of $670.Your checkbook register shows a balance of $462.You earned interest of $2 and had a service charge of $4.There are no outstanding deposits.What is the amount of outstanding checks?

Accepted Answer

A)  $210
B)  $208
C)  $180
D)  $12
E)  $6

Question 15

Which one of the following financial service providers should be avoided,because the interest rates charged on loans can be over 100% a year?

Accepted Answer

A)  Pawnshop
B)  Credit union
C)  Savings and loan association
D)  Mutual savings bank
E)  Life insurance company

Question 16

Which one of the following savings plans is not covered by federal deposit insurance?

Accepted Answer

A)  Account at a savings and loan
B)  Regular checking account at a commercial bank
C)  Money market account at a commercial bank
D)  Money market fund with an investment company
E)  Certificate of deposit at a commercial bank D

Question 17

Which one of the following is true for a NOW account?

Accepted Answer

A)  It is an interest-earning checking account that requires a minimum balance.
B)  It is an account that charges a fee for each check written and does not require a minimum balance.
C)  It is a non-interest earning account.
D)  All of these are true.
E)  None of these are true.

Question 18

A personal check with guaranteed payment is called a:

Accepted Answer

A)  traveler's check.
B)  bank draft.
C)  certified check.
D)  money order.
E)  cashier's check.

Question 19

A restrictive endorsement consists of the words "for deposit only."

Accepted Answer

A) True 
 B)False

Question 20

The Truth in Savings law requires that financial institutions:

Accepted Answer

A)  provide insurance for savings accounts.
B)  send customers monthly bank statements.
C)  report annual percentage yield on savings.
D)  offer adjustable rate savings accounts.
E)  become members of the Federal Reserve System.

Exam 5: Financial Services: Savings Plans and Payment Accounts

An asset management account combines a complete financial services program for a single fee.

Correct AnswerverifiedShow Answer

Based on the following information,what amount would be subtracted from the bank statement side of the checking account reconciliation? Service charge $12; Outstanding checks $145; Interest $3.50; Deposit in transit $80.

Correct AnswerverifiedShow Answer

Series EE bonds continue to earn interest for how many years?

Correct AnswerverifiedShow Answer

Which CD attempts to attract savers with gifts or special rates?

Correct AnswerverifiedShow Answer

The purpose of a "special endorsement" is to:

Correct AnswerverifiedShow Answer

Which of the following represent the use of credit?

Correct AnswerverifiedShow Answer

Which type of organization does not provide home mortgages?

Correct AnswerverifiedShow Answer

When preparing a bank reconciliation,interest earned on your checking account is added to the bank statement balance.

Correct AnswerverifiedShow Answer

A higher rate of return would result from a savings account that had which of the following compounding frequencies?

Correct AnswerverifiedShow Answer

What type of account would be considered the most liquid?

Correct AnswerverifiedShow Answer

In the bank reconciliation process,total fees should be:

Correct AnswerverifiedShow Answer

Which of the following doesnot offer deposit services?

Correct AnswerverifiedA

In recent years,membership in credit unions has:

Correct AnswerverifiedB

Your bank statement shows a balance of $670.Your checkbook register shows a balance of $462.You earned interest of $2 and had a service charge of $4.There are no outstanding deposits.What is the amount of outstanding checks?

Correct AnswerverifiedShow Answer

Which one of the following financial service providers should be avoided,because the interest rates charged on loans can be over 100% a year?

Correct AnswerverifiedShow Answer

Which one of the following savings plans is not covered by federal deposit insurance?

Correct AnswerverifiedD

Which one of the following is true for a NOW account?

Correct AnswerverifiedShow Answer

A personal check with guaranteed payment is called a:

Correct AnswerverifiedShow Answer

A restrictive endorsement consists of the words "for deposit only."

Correct AnswerverifiedShow Answer

The Truth in Savings law requires that financial institutions:

Correct AnswerverifiedShow Answer

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D

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