If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the
US Treasury Department
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 writes as long as:
There is enough money in Ms.Sanchez's account to cover the amount of the checks
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 deposited in savings accounts are F.D.I.C. insured
Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:
A savings plan
A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take?
Notify the credit card companies in order to negotiate a new payment plan.
What is meant by an uncollateralized loan?
A personal loan without assets to cover the loan amount.
When a person declares bankruptcy that fact will appear on the person?s credit report
for a 10 year period
When a person brings an item to a pawnshop to obtain cash, the transaction is considered
a collateralized loan.
Which of the following is considered to be open-end credit?
Department store charge cards.
Which of the following does the Federal Reserve use to regulate the nations money supply?
monetary policy
Money in the United States includes:
Checking account balances on which checks can be drawn
Which statement is FALSE about most ATM(Automated Teller Machine) cards?
You can always get cash anywhere in the world with no fee
A cash card generally:
Is purchased with a specific amount of money that can be used to pay for goods or services
A person complains about how expensive it is to be a cigarette smoker. One of the reasons cigarettes are so expensive is that
the government imposes an excise tax on them.
A man budgeted $200 a month for clothing. This month the man spent $150 on clothing therefore that budget item is considered to have
budget variance
One of the benefits of holding an investment for over a year rather than selling it in less than a year is that the
capital gains on the investment will be taxed at a lower rate.
A person's debt ratio shows the relationship between debt and net worth. The lower the ratio the
Better off financially the person is
After five years of owning a Roth Individual Retirement Account (IRA), a person wants to buy his first home, the person can withdraw money from the Roth IRA
tax and penalty free.
A company offers a defined-contribution pension plan which means that upon retirement the employee will receive
the total amount of money contributed plus investment earnings.
Buying a treasury bill (T-bill) is best for investors who are looking for
a secure, low risk investment
What is the largest equities market in the world?
New York Stock Exchange (NYSE)
A person owns a stock that pays a $2.00 a share dividend. If the person chooses to reinvest that dividend, this means that the $2.00 will go toward buying
more of the same stock.
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:
Securities and Exchange Commission (SEC)
An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later, the investor receives notice that the corporation has approved a 2-for-1 stock split. Based on this information, the investor would own at the moment of the split
80 shares of the stock and the price of each share is $40.
To determine the time value of depositing $100 in a savings account, a person needs to know the interest rate and
rate of inflation
Lamar believes that interest rates are going to fall in the near future and remain low for a considerable period of time. She should invest in:
A long-term, fixed rate certificate of deposit
A person is convinced that a lending institution is charging too much interest for a loan. This person should be aware that
there are state usury laws.
If a person has $1,000 in a savings account and earns $20 a year in interest on that account, the rate of return on the money is close to
2%
Money received today is worth more than the same amount of money received sometime in the future is:
time value of money
A person buys a flat screen, plasma, theater-like television. The person has homeowner?s insurance. Why would it be appropriate to add a personal property floater to that insurance?
To cover the cost of replacement should the television get damaged or stolen.
For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receive
calculated amount of money which includes the premiums paid as well as the interest on that money.
A woman has just received a very expensive piece of jewelry. The woman has homeowner's insurance. Which statement would it be most appropriate for her to make to her insurance agent?
I think I need a personal property floater.
Sally's health insurance policy requires her to pay the first $500 of medical costs each year before the company will pay any of her medical bills. This policy provision is the:
Annual Deductible
Ben's truck is crushed by a hit-and-run driver. Scott is hit by an uninsured driver. How will they receive payments?
Uninsured or no-fault motorist coverage