Financial Literacy Module 2 Consumer Finance Institutions Knowledge Check

Question 1

The law known as the Gramm-Leach-Bliley Act; allows for the consolidation of financial services

Accepted Answer

Financial Services Modernization Act of 1999

Question 2

___ is the illegal use of an individual's personal information

Accepted Answer

identity theft

Question 3

Which of the following items is not a form of guaranteed payment?

Accepted Answer

cancelled check

Question 4

A card sold in specific dollar amount that can be used to purchase goods or services

Accepted Answer

pre-paid card

Question 5

A person to whom a check is made out to & can take the check to his/her bank to cash/deposit it

Accepted Answer

payee

Question 6

Which formula listed below is used to compute compound interest?

Accepted Answer

•FV = PV × (1+r)n

Question 7

Which of the following fees would most likely be the highest

Accepted Answer

Overdraft fee

Question 8

A financial transaction that electronically moves funds from one bank to another

Accepted Answer

wire transfer

Question 9

A savings account is an account into which a person can ...

Accepted Answer

deposit money & draw a low rate of interest

Question 10

Which federal agency ensures deposits for member backs up to $250K/depositor/account?

Accepted Answer

Federal Deposit Insurance Corporation - FDIC

Question 11

If your ATM card is lost, you should ...

Accepted Answer

report the loss immediately to the issuing bank

Question 12

Which is not a type of bank?

Accepted Answer

Title loan lender

Question 13

What is a statement of what you own and what you owe?

Accepted Answer

balance sheet

Question 14

Which type of check endorsement limits payment to a specific payee with Pay to the Order of...?

Accepted Answer

special

Question 15

Which law protects people who apply for credit are protected from discrimination?

Accepted Answer

Equal Credit Opportunity Act

Question 16

What is the purpose of balancing/monitoring your checking account?

Accepted Answer

To help calculate how much money is in your accunt

Question 17

Which is the primary responsibility of the Federal Reserve Bank

Accepted Answer

Establish monetary policy

Question 18

Which type of financial institution has a membership requirement?

Accepted Answer

Credit Union

Question 19

Which type of account has low liquidity?

Accepted Answer

Certificate of Deposit

Question 20

A ____ is a small computer file on a computer that records certain web activities.

Accepted Answer

cookie

Question 21

What is a "bank?"

Accepted Answer

any type of financial institution where you deposit money

Question 22

What is the secret code that you input to access your accounts when using an ATM?

Accepted Answer

personal identification number - PIN

Question 23

Which of the following is an online identity theft tactic?

Accepted Answer

pharming

Question 24

What is the best strategy to avoid ATM fees?

Accepted Answer

Only use ATMs in your bank's network

Question 25

A __________ offers traditional checking & savings accounts for individuals & businesses

Accepted Answer

depository institution

Financial Literacy Module 2 Consumer Finance Institutions Knowledge Check

Questions 25

Financial Literacy Module 2 Consumer Finance Institutions Knowledge Check

Questions 25