Question 11
Ronald's gross income is $60,000, and his living expensesconsume 75 percent of his gross income. According to financialexperts, Ronald should set aside ____ to cover emergencies.
A. $5,000 to $10,000
B. $22,500 to $45,000
C. $11,250 to $22,500
D. $15,000 to $30,000
Question 12
Which of the following is not a benefit of a savingsaccount?
A. A way to achieve short-term savings goals
B. Builds funds for large, irregular expenses
C. Protection against inflation
D. A way to save for your child's education
Question 13
Stock brokerage firms typically offer
A. money market mutual fund accounts.
B. savings accounts.
C. certificates of deposit.
D. checking accounts.
Question 14
Absent-minded Alfred lost his ATM card on May 1. He reported itmissing the next day; however, $600 had been withdrawn from hischecking account. According to the Electronic Funds Transfer Act,how much of this $600 loss is Alfred responsible for?
A. $600
B. $50
C. $500
D. $0
Question 15
A check drawn on a financial institution, backed by thefinancial institution's finances, and made out to a specific payeeis called a
A. cashier's check.
B. money order.
C. certified check.
D. traveler's check.
Question 16
If Gus Solis believes interest rates are going to fall in thenear future and remain low for several years, Gus should now
A. invest in a long-term, fixed-rate certificate of deposit.
B. bury his money in fruit jars in the back yard.
C. invest in a variable-rate certificate of deposit.
D. invest in a short-term, fixed-rate certificate of deposit.
Question 17
Which of the following could be the most expensive way ofprotecting yourself from fees should you overdraft your checkingaccount?
A. An automatic funds transfer agreement
B. Paying the overdraft/bounced check fee
C. Opt-in overdraft/bounce protection
D. An automatic overdraft loan agreement
Question 18
Not-for-profit, common-bond financial institutions that areowned by their members are called
A. credit bureaus.
B. mutual savings banks.
C. savings banks.
D. credit unions.
Question 19
The Federal Deposit Insurance Corporation (FDIC) currentlyinsures against loss of up to ____ per person in an individualaccount at any one institution.
A. $50,000
B. $100,000
C. $250,000
D. $500,000
Question 20
Which of the following types of payment instruments could youget at your local post office?
A. Traveler's check
B. Cashier's check
C. Certified check
D. Money order
Question 11
Ronald's gross income is $60,000, and his living expensesconsume 75 percent of his gross income. According to financialexperts, Ronald should set aside ____ to cover emergencies.
| A. | $5,000 to $10,000 | |
| B. | $22,500 to $45,000 | |
| C. | $11,250 to $22,500 | |
| D. | $15,000 to $30,000 |
Question 12
Which of the following is not a benefit of a savingsaccount?
| A. | A way to achieve short-term savings goals | |
| B. | Builds funds for large, irregular expenses | |
| C. | Protection against inflation | |
| D. | A way to save for your child's education |
Question 13
Stock brokerage firms typically offer
| A. | money market mutual fund accounts. | |
| B. | savings accounts. | |
| C. | certificates of deposit. | |
| D. | checking accounts. |
Question 14
Absent-minded Alfred lost his ATM card on May 1. He reported itmissing the next day; however, $600 had been withdrawn from hischecking account. According to the Electronic Funds Transfer Act,how much of this $600 loss is Alfred responsible for?
| A. | $600 | |
| B. | $50 | |
| C. | $500 | |
| D. | $0 |
Question 15
A check drawn on a financial institution, backed by thefinancial institution's finances, and made out to a specific payeeis called a
| A. | cashier's check. | |
| B. | money order. | |
| C. | certified check. | |
| D. | traveler's check. |
Question 16
If Gus Solis believes interest rates are going to fall in thenear future and remain low for several years, Gus should now
| A. | invest in a long-term, fixed-rate certificate of deposit. | |
| B. | bury his money in fruit jars in the back yard. | |
| C. | invest in a variable-rate certificate of deposit. | |
| D. | invest in a short-term, fixed-rate certificate of deposit. |
Question 17
Which of the following could be the most expensive way ofprotecting yourself from fees should you overdraft your checkingaccount?
| A. | An automatic funds transfer agreement | |
| B. | Paying the overdraft/bounced check fee | |
| C. | Opt-in overdraft/bounce protection | |
| D. | An automatic overdraft loan agreement |
Question 18
Not-for-profit, common-bond financial institutions that areowned by their members are called
| A. | credit bureaus. | |
| B. | mutual savings banks. | |
| C. | savings banks. | |
| D. | credit unions. |
Question 19
The Federal Deposit Insurance Corporation (FDIC) currentlyinsures against loss of up to ____ per person in an individualaccount at any one institution.
| A. | $50,000 | |
| B. | $100,000 | |
| C. | $250,000 | |
| D. | $500,000 |
Question 20
Which of the following types of payment instruments could youget at your local post office?
| A. | Traveler's check | |
| B. | Cashier's check | |
| C. | Certified check | |
| D. | Money order |
