Wise Practice Test (Banking)

Front

If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the

Back

US Treasury Department.

Front

Why should James cash his paycheck at his own bank instead of a check cashing store?

Back

They typically charge high fees.

Front

Which financial product typically pays the highest rate of interest? A. Savings account, B. Money market account, C. Certificate of deposit, D. Common stock

Back

Certificate of deposit

Front

Financial services and products generally offered by banks and credit unions include: Real estate listings, Savings and loans, Legal services, Business plans

Back

Savings and loans

Front

The best suggestion for a friend writing a check for the first time is: Date the check because it is usually proof of payment.

Back

Date the check because it is usually proof of payment.

Front

The best reason for depositing money in a bank or credit union savings account instead of keeping your money "under the mattress" is that:

Back

Money deposited in savings accounts are insured.

Front

How can individuals be prepared for losing their job or having a large medical expense? A.  Maintain a checking account with sufficient funds, B.  Pay credit card bills on time, C.  Prepare a budget, D.  Save at least three months of income

Back

Save at least three months of income

Front

A teenage 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. The teenager should be aware that the reason cancelled checks are NOT returned is to

Back

save the bank money associated with returning copies of these checks.

Front

A bank Certificate of Deposit is a:

Back

Savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals.

Front

Consumer finance companies, which are often advertised on TV, are also known as:

Back

Small loan companies