Question 1

What is one reason commercial banks are considered to be 'safe'?

Accepted Answer

Because they are FDIC insured.

Answer

Because they are ran by the smartest money managers.

Answer

Because they know a lot about money.

Answer

Because they have never lost any money before.

Question 2

When writing a check, which of the following is NOT required?

Accepted Answer

an endorsement on the back

Answer

the name of the payee

Answer

the current date

Answer

your signature on the front

Question 3

What could account for differences in balances in your checkbook and bank statement after reconciliation?

Accepted Answer

All of the above

Answer

Outstanding checks

Answer

Outstanding deposits

Answer

An error or omission

Question 4

What should your monthly budget include?

Accepted Answer

All of the above

Answer

Fixed expenses

Answer

Money to blow

Answer

Variable expenses

Question 5

If you borrowed $3,000 at 6% for 1 year, what would be the total amount you’d repay?

Accepted Answer

$3,180

Answer

$1,800

Answer

$180

Answer

$18,000

Question 6

What is a budget?

Accepted Answer

a plan for how you will spend the money you earn or receive

Answer

a type of checking account

Answer

a type of savings account

Answer

the amount of money the government taxes you

Question 7

Which of the following are examples of savings vehicles?

Accepted Answer

simple savings accounts and CDs

Answer

simple savings accounts and loans

Answer

loans, stocks, and CDs

Answer

credit reports and stocks

Question 8

What type of endorsement is NOT a form of endorsement?

Accepted Answer

Death Endorsement

Answer

Blank Endorsement

Answer

Endorsement in Full

Answer

Restrictive Endorsement

Question 9

What type of account would Harry best choose for saving for a laptop with higher interest?

Accepted Answer

Certificate of Deposit

Answer

Money Market

Answer

Stock Portfolio

Answer

Regular Checking

Question 10

The numbers listed at the bottom of a check represent what?

Accepted Answer

Routing, account

Answer

Telephone, Bank

Answer

Check, PIN

Answer

Routing, legal tender

Question 11

How many months of expenses should an emergency fund ideally cover?

Accepted Answer

3 to 6 months of expenses

Answer

1 month

Answer

6 to 12 months

Answer

1 to 2 months

Question 12

Which account would best fit Harry's need for a higher interest rate without needing access to the funds for 9 months?

Accepted Answer

Certificate of Deposit

Answer

Regular Checking

Answer

Stock Portfolio

Answer

Money Market

Question 13

What does the Federal Deposit Insurance Corporation (FDIC) insure against?

Accepted Answer

losing their money in the case of a bank failure

Answer

poor investment choices

Answer

lost credit cards

Answer

identity theft

Question 14

What types of fees can banks charge?

Accepted Answer

service fees such as maintenance fees, penalty fees, and overdraft fees

Answer

no fees at all

Answer

only maintenance fees

Answer

only penalty fees

Question 15

Where should your PIN not be written?

Accepted Answer

on the front of your debit card

Answer

on the back of your debit card

Answer

on a piece of paper in your wallet

Answer

somewhere safe and secure

Question 16

How do banks primarily make a profit?

Accepted Answer

by extending credit to consumers in the form of a loan

Answer

by providing free checking

Answer

by selling financial education services

Answer

by charging customers for using ATMs

Question 17

What did FICA (Federal Insurance Contributions Act) create?

Accepted Answer

Both Social Security and Medicare.

Answer

None of these are true.

Answer

Social Security

Answer

<P>Medicare</P>

Question 18

What happens to your net worth when you pay off previous debts?

Accepted Answer

it goes up

Answer

it goes down

Answer

it remains the same

Answer

it fluctuates randomly

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