If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the:
U.S. Treasury Department
What action should a person take who must make a tuition payment at the end of August each year?
Decide how much money will be needed and then place 1/12th of that amount in a separate account each month.
The phrase used for putting money into a checking or savings account is:
Making a deposit
How can individuals be prepared for losing their job or having a large medical expense?
Save at least 3 months of income
The financial institution where Ms. Sanchez has her checking account will continue to pay out money for the checks she write as long as:
There is enough money in her account to cover the amount of the checks
You have a checking account balance of $100 and you deposit a personal $200 check from your brother in your checking account. When will you be able to withdraw $150 in cash?
3 to 7 days later, depending on your bank's check clearance policy
Consumer finance companies, which are often advertised on TV, are also known as:
Small loan companies
Frankie's savings account has earned a lot of interest. He wants to know if he must pay taxes on the interest earned. What would the IRS tell him?
Savings account interest is taxable
The term used to describe the ease and speed with which you can convert savings or an investment to cash is:
Liquidity
Margaret wants to store a valuable coin collection and important papers. Generally, consumers should:
Rent a safe deposit box for their valuables
A blank endorsement on a check:
Creates a check that can be cashed by anyone
The best reason for depositing money in a bank or credit union savings account instead of keeping your money "under the mattress" is that money in most financial institutions will:
Earn a rate of interest
Employees prefer direct deposits because:
The money is generally deposited in their checking account sooner than it would be if they had to deposit it in person.
Pat has a savings account and a car loan from a not-for-profit financial institution owned by its members. She is probably a member of what type of financial institution?
Credit Union
Which financial product has the most predictable income?
a. Stock
b. Real Estate
c. Certificate of Deposit (CORRECT!)
d. Option/future contract
A boy has opened a checking account. He is surprised to find that though he is getting a written bank statement each month he is not getting his cancelled checks returned. He should be aware that the reason cancelled checks are NOT returned is to:
Save the bank money
The Fed" is short for:
The Federal Reserve
Financial services and products generally offered by banks and credit unions include:
Savings and loans
A person is depositing $20 in cash and a check for $50. On the checking account deposit slip, the person should:
List the cash deposit separately from the check as well as the total of the deposit.
Which financial product may pay a dividend?
a. Savings account
b. Money market account
c. Certificate of deposit
d. Common Stock (CORRECT!)
Patty is selling her car through a newspaper advertisement. When she finds a buyer, she wants a form of payment which is guaranteed to be good. Which form of payment should she avoid?
A check
When James received his paycheck, he planned to cash it at a check cashing store. You advise him to cash it at his own bank if possible. Why?
Check cashing store typically charge high fees.
Safe-deposit boxes are:
Safe and can be accessed only the owner of the box
Which is the best example of a way to reduce fees paid for ATM transactions?
When making supermarket purchases with a debit card, a person adds $50 in cash to the transaction instead of using an ATM machine.
Which financial institution typically pays the highest rate of interest?
a. Savings account
b. Money market
c. Certificate of Deposit (CORRECT!)
d. Common stock
Which documents should be stored in a safe-deposit box?
a. Bank statements
b. Copies of current and past budgets
c. Current paycheck stubs
d. Mortgage loan papers (CORRECT!)
Banks use savings account deposits to:
Give loans to consumers and businesses
Money orders are:
A purchased certificate to pay a specified amount to a specific payee
The best suggestion you gave a friend who is writing a check for the first time is:
Date the check because it is usually proof of payment
Which financial product can you buy for $25, is safe, and will be wroth $50 at a future date?
Series EE Bond (Discount Bonds)
The most liquid type of investment is:
A money market account (Savings account)
Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:
A savings plan
The National Credit Union Administration (NCUA) insures accounts in:
Credit Unions
When a person is reconciling a checking account and notices that the balance in the checkbook does not match the balance on the statement from the bank, which action is appropriate for the person to take first?
Determine that checks already written have cleared.
A bank Certificate of Deposit is a:
Savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals.
Travelers checks, often used for vacations:
Function as cash and are easily replaced if lost.