Question 1

If a person makes a deposit of $10,000 or more into a bank account, the bank must notify which entity?

Accepted Answer

US Treasury Department.

Answer

Federal Reserve Board.

Answer

Federal Deposit Insurance Corporation. (FDIC).

Answer

State Banking Commission.

Question 2

What is the best option for Margaret to store her valuable coin collection and important papers?

Accepted Answer

Rent a safe deposit box for their valuables.

Answer

Store valuables in a locked drawer

Answer

Hand valuables over to their attorney

Answer

Store valuables in a cabinet at home

Question 3

What is the best reason for depositing money in a savings account instead of keeping it 'under the mattress'?

Accepted Answer

Money deposited in savings accounts are F.D.I.C. insured

Answer

Most savings accounts earn a guaranteed rate of interest

Answer

Money in a savings account can be accessed any time during the day or night

Answer

Most savings accounts come with a free credit card

Question 4

For the checks Ms. Sanchez writes, her financial institution will continue to pay them as long as:

Accepted Answer

There is enough money in Ms. Sanchez's account to cover the amount of the checks.

Answer

She uses checks from her checkbook

Answer

The financial institution has sufficient funds

Answer

She maintains a good record of deposits and handles her account responsibly

Question 5

Consumer finance companies advertised on TV are also known as:

Accepted Answer

Small loan companies.

Answer

Savings and loan associations

Answer

Purchase loan lenders

Answer

Banks

Question 6

What should a person do if they have three credit cards with large outstanding balances and can't make payments?

Accepted Answer

Notify the credit card companies in order to negotiate a new payment plan.

Answer

Contact the Internal Revenue Service to avoid paying income tax this year.

Answer

File for bankruptcy to maintain their current credit score.

Answer

Notify a credit reporting agency to avoid a late fee.

Question 7

What type of loan is described when a person brings an item to a pawnshop to obtain cash?

Accepted Answer

A collateralized loan.

Answer

A sales agreement.

Answer

A custodial payment.

Answer

An unsecured loan.

Question 8

Which of the following is an example of open-end credit?

Accepted Answer

Department store charge cards.

Answer

A car loan.

Answer

Installment loans.

Answer

A mortgage.

Question 9

What does an uncollateralized loan mean?

Accepted Answer

A personal loan without assets to cover the loan amount.

Answer

A loan not backed by a co-signer who agrees to cover the amount of the loan.

Answer

A loan taken on a life insurance policy.

Answer

A home equity loan.

Question 10

How long will bankruptcy appear on a person's credit report?

Accepted Answer

for a 10 year period.

Answer

until the person repays all debts owed.

Answer

for a 3 year period.

Answer

until the person is able to receive a new credit card.

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