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Banking - W!SE Financial Literacy Flashcards | StudBud
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Banking - W!SE Financial Literacy
Banking - W!SE Financial Literacy
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Review for the Banking portion of the W!SE Test
Flashcards
27 cards
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Practice quiz
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Questions
27
Answers
1
A________can be used to request your bank to refuse payment on a check that has not yet cleared
phone call
stop payment order
signature card
overdraft protection
2
Banks use savings account deposits to:
Pay for employee special projects
Make their products and services more attractive to new depositors.
Give loans to consumers and businesses
Improve the quality of life for low income families
3
Which financial product has the most predictable income?
Real Estate
Stock
Certificate of Deposit
Option/Futures Contract
4
Margaret wants to store a valuable coin collection and important papers. Generally, consumers should:
Lock it in her draw.
Giver it to her lawyer
Store in a cabinet at home
Rent a safe deposit box
5
The phrase used for putting money into a savings account is:
Making a Deposit
Making a withdrawal
Verifying the Account
Balancing the Account
6
Employees prefer direct deposits because:
The danger of losing a paycheck is reduced
Direct deposits earn a higher rate of interest.
The money is generally deposited in their checking account sooner
There is a small fee for the service
7
A debit card:
Can be used to take money out of a checking or savings account
Can be used like a credit card
traveler's check
Can be used like a money order.
8
A Starbucks Gift Card is an example of:
A prepaid gift card
An open loop card
A Visa Gift Card
None of the answers
9
A blank endorsement on a check:
Has no effect on a check
Cancels a check
Clears a check
Creates a check that can be cashed by anyone
10
Which financial product can you buy for $25, is safe, and will be worth $50 at a future date?
Corporate Bond
A series EE Savings Bond
A CD
Stocks
11
Travelers checks, often used for vacations:
Are free at most banks
Are FDIC insured
Function as cash and are easily replaced if lost
Are equivalent to credit cards.
12
Doug wants to buy a car in two months, but does not have enough money. What is the best way for Doug to get the money?
Purchase a CD
Open up a Money Market Account
Take out a cash loan
Apply for a mortgage
13
Joan wants to open a checking account and wonders if checking accounts pay interest. How would you answer her question?
All checking accounts pay interest
Checking accounts never pay interest
Some types of checking accounts pay interest
Checking accounts pay interest if the account balance does not fall below $
14
Frankie wants to know if the interest he earned from his savings account is taxable. What would you tell him?
A sales tax will be charged on the interest
Savings account interest is taxable
If interest is under $50 it is not taxable.
Interest earned on savings accounts is not taxable.
15
When your institution pays the funds the checks is said to have:
bounced
stopped
cleared
none of the answers
16
When James received his paycheck, he planned to cash it at a check cashing store. Why is this not a good idea?
Their is a ceiling on the amount that can be cashed.
There is a two day waiting period.
They typically charge high fees.
They require a co-signor
17
you deposit a personal $200 check from your brother in your checking account. When will you be able to withdraw $150?
After receiving a checking account statement at the end of the month
On the day you make your next deposit
The same day as the $200 deposit
3 to 7 days later, depending on your bank's check clearance policy
18
How can individuals be prepared for losing their job or having a large medical expense?
Pay your bills on time.
Save at least three months of income
Maintain a checking account with sufficient funds.
Prepare a budget
19
The financial institution where Ms. Sanchez has her checking account will continue to pay out money as long as:
The financial institution as funds
As long as she maintains a good record of deposits
She uses checks from her checkbook
As long as there is enough money in the account
20
A secured loan is backed by:
an automobile
a person's credit
collateral
a house
21
The National Credit Union Administration (NCUA) insures accounts in:
Brokerages
Commercial Banks
Credit unions
Savings Banks
22
Safe-deposit boxes are:
A free benefit if you open a savings account.
Available at all banks
Convenient and accessible at any part of the day.
Safe and can be accessed only by the owner of the box
23
Financial services and products generally offered by banks and credit unions include:
Legal Services
Business Plans
Real Estate Listings
Savings and Loans
24
Consumer finance companies, which are often advertised on TV, are also known as:
Savings and loan associations
Purchase Loan Lenders
Banks
Small loan companies
25
What action should a person take who must make a tuition payment at the end of August each year?
Obtain a loan
Open a new credit card
Determine amount need and buy stock.
Put 1/12 of the payment away each month.
26
Which financial product typically pays the highest rate of interest?
Common Stock
Money Market Accounts
Certificate of Deposit
Savings Accounts
27
When reconciling a checkbook to the bank statement and the checks you wrote don't match the bank statement, you should:
Adjust the balance in the checkbook to make it all match.
Determine that checks already written have cleared.
Tell the bank to make the adjustment.
Deposit money to make sure you have enough money available.
