Question 1

Neil Guest writes a check to pay for day care for his son.What type of financial service is Neil using?

Accepted Answer

A)  payment service
B)  savings service
C)  borrowing service
D)  trust services
E)  asset managementF) B) and C)
G) A) and B)

Question 2

What is the rate an individual will pay for borrowing to purchase a new home called?

Accepted Answer

A)  prime
B)  discount
C)  mortgage
D)  treasury bond
E)  corporate bondF) B) and C)
G) B) and E)

Question 3

Which of the following is an effective strategy in times of falling interest rates?

Accepted Answer

A)  Use long-term loans to take advantage of current low rates.
B)  Use short-term loans to take advantage of lower rates when you refinance the loans.
C)  Select short-term savings instruments to take advantage of higher rates when they mature.
D)  Select short-term savings instruments to lock-in earnings at current high rates.
E)  Select long-term savings instruments to lock-in earnings at current low rates.F) A) and B)
G) A) and C)

Question 4

A savings account at a credit union is called a ____________ account.

Accepted Answer

A)  share
B)  NOW
C)  club
D)  certificate
E)  money marketF) A) and E)
G) A) and B)

Question 5

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)  payroll check cashing servicesF) A) and B)
G) A) and D)

Question 6

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

Accepted Answer

A)  bump-up
B)  indexed
C)  callable
D)  global
E)  promotionalF) C) and D)
G) A) and B)

Question 7

Which law requires banks and other financial institutions to disclose fees,the annual percentage yield,and the other terms and conditions on checking and savings accounts?

Accepted Answer

A)  Truth in Savings Law
B)  Truth in Lending Law
C)  Expedited Funds Availability Act
D)  Equal Employment Opportunity Act
E)  Identity Theft Protection ActF) A) and E)
G) C) and E)

Question 8

What is the rate that the Federal Reserve charges banks for loans called?

Accepted Answer

A)  prime
B)  discount
C)  mortgage
D)  treasury bond
E)  corporate bondF) D) and E)
G) All of the above

Question 9

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.F) A) and E)
G) A) and B)

Exam 5: Financial Services: Savings Plans and Payment Accounts

Which type of organization does not provide home mortgages?

Correct Answer
verified

Neil Guest writes a check to pay for day care for his son.What type of financial service is Neil using?

Correct Answer
verified

What is the rate an individual will pay for borrowing to purchase a new home called?

Correct Answer
verified

Which of the following is an effective strategy in times of falling interest rates?

Correct Answer
verified

Which law requires banks and other financial institutions to disclose fees,the annual percentage yield,and the other terms and conditions on checking and savings accounts?

Correct Answer
verified

A savings account at a credit union is called a ____________ account.

Correct Answer
verified

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

Correct Answer
verified

The Truth-in-Savings law requires that financial institutions:

Correct Answer
verified

What is the rate that the Federal Reserve charges banks for loans called?

Correct Answer
verified

Exam 5: Financial Services: Savings Plans and Payment Accounts

Which type of organization does not provide home mortgages?

Correct AnswerverifiedShow Answer

Neil Guest writes a check to pay for day care for his son.What type of financial service is Neil using?

Correct AnswerverifiedShow Answer

What is the rate an individual will pay for borrowing to purchase a new home called?

Correct AnswerverifiedShow Answer

Which of the following is an effective strategy in times of falling interest rates?

Correct AnswerverifiedShow Answer

Which law requires banks and other financial institutions to disclose fees,the annual percentage yield,and the other terms and conditions on checking and savings accounts?

Correct AnswerverifiedShow Answer

A savings account at a credit union is called a ____________ account.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Truth-in-Savings law requires that financial institutions:

Correct AnswerverifiedShow Answer

What is the rate that the Federal Reserve charges banks for loans called?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified