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W!se Practice Questions - Banks and Banking Flashcards | StudBud
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W!se Practice Questions - Banks and Banking
W!se Practice Questions - Banks and Banking
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Practice questions for the W!se Financial Literacy Test organized by Test Blueprint.
Flashcards
14 cards
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1
What might lead someone to decide not to give a gift card to someone?
Gift cards must be personalized and require more thought.
Gift cards can expire or include fees that reduce their value over time.
Gift cards may not always be appreciated and may disappoint the recipient.
Provides the recipient with unlimited options and flexibility when buying.
2
Which of the following choices lists assets from MOST liquid to LEAST liquid?
Stocks, savings accounts, money market accounts.
Bonds, real estate, certificate of deposit (CD).
Savings accounts, certificates of deposit (CD), real estate.
Money market accounts, bonds, checking accounts.
3
Why might a person place a stop payment on a check?
To cancel the check and prevent it from being cashed.
To authorize payment of the check.
To increase the amount of the check.
To speed up the processing of the check.
4
What might be a factor influencing the way a person chooses a bank?
The number of employees working at the bank.
The gift or promotion for opening an account.
The bank’s social media presence.
The bank’s location and accessibility.
5
Which statement best describes a credit union?
A for-profit organization that offers financial services to the public.
A government agency that regulates banking practices.
A corporation that extends credit to its members and the public.
A non-profit organization that offers financial services to its members.
6
What may be considered a benefit of online banking?
Increased paper usage.
Convenient access to account balances and transactions.
Protection of sensitive information.
Constant access to a personal banker.
7
A restricted endorsement typically includes __________________.
A person’s signature and “For Deposit Only.”
The date and “Pay to the Order Of.”
A person’s signature and account number.
The date and the person’s address.
8
What is the primary purpose of banks?
To safeguard money and provide financial services.
To offer educational programs.
To provide storage for valuable assets.
To sell investment products.
9
Which is the safest option for receiving payment, instead of cash, if selling an item to an unknown person?
Personal check.
Money order.
Crypto currency.
Loan agreement.
10
Electronic funds transfer refers to
A method of transferring funds between bank accounts using a mobile device.
A process of physically depositing cash into a bank account.
A service provided by banks to exchange physical checks.
The process of withdrawing cash from an ATM.
11
A person writes a check for $250 with no overdraft protection and a current account balance of $175. Their bank will...
pay the check and ask the customer to make an additional deposit.
return the check because of insufficient funds and charge a fee.
set up a loan for the difference.
close the person’s bank account.
12
The __________ provides insurance on bank deposits up to a value of _________.
Federal Deposit Insurance Corporation; $250,000.
Internal Revenue Service; $100,000.
Federal Reserve; $100,000.
Securities and Exchange Commission; $250,000.
13
Which of the following best describes the difference between a debit and credit card?
Debit cards require a credit check, while credit cards do not.
Credit cards are linked to your checking account, debit cards are not.
Debit cards have higher interest rates compared to credit cards.
Your own money is spent with debit cards and you borrow with credit cards.
14
When a person reconciles a bank account, they
Deposit money into the account.
Request overdraft protection to avoid paying bank fees.
Withdraw money from the account.
Compare the bank statements and account records and make any adjustments
