Module 4 Exam

Module 4

Exam Review

Overview

• Lessons 1-8

Module 4

Exam Review

Multiple Choice

You decide to go on a shopping spree. You make a purchase at Sears, and the cashiers says "Can I put your purchase on your Sears Card?" You reply "I don't have a Sears Card." The cashier asks you if you would like to apply for one. You say "Sure!" Throughout your shopping spree you purchase items at many different stores. At each of the stores this same scenario happens, the cashier asks you to apply for credit and you say yes. What will happen to your credit score?

• It will increase because of the number of times you have applied for credit.

• It won't change at all because you were denied the credit card.

• It will decrease because of the number of times you have applied for credit

Multiple Choice

Which type of endorsement transfers ownership to someone else?

• Restrictive

• Blank

• Special

• None of these

Multiple Choice

There is no need to reconcile a bank account because the bank always has an accurate balance of the amount in your account.

• True

• False

Multiple Choice

A financial report listing your assets, liabilities, and net worth is called ___.

• statement of net worth

• a balance sheet

• statement of owner's equity

• None of these

Multiple Choice

A for-profit organization is an organization whose primary objective is to support an issue or matter for non-commercial purposes.

• True

• False

Multiple Choice

Cashiers checks are checks issued by a bank to a specific person or business.

• True

• False

Multiple Choice

Which of the following usually provide the investor with the most interest?

• Money Market Savings Account

• Savings Account

• Checking Account

• Certificate of Deposit

Multiple Select

Which of the following are fixed expenses? (Check all that apply)

• Food

• Entertainment

• Car payment

• Rent

Multiple Choice

If an asset has high liquidity, that asset can very quickly and easily be converted to cash.

• True

• False

Multiple Choice

How often should you reconcile your checking account?

• Daily

• Monthly

• Quarterly

• Annually

Multiple Select

Which of the following might be deducted from your gross pay? (Check all that apply)

• Federal tax

• Health care

• FICA tax

• State tax

Multiple Select

Which of the following are examples of commercial banks? (Check all that apply)

• Wells Fargo

• Chase

• Navy Federal Credit Union

• Citi

• PNC

Multiple Choice

When issuing a check from a joint account with two owners both account owners will always need to sign the check.

• True

• False

Multiple Choice

.

If the value of your home is $220,000 and you have an outstanding mortgage balance of $120,000, what is the amount of equity you have in the home?

• $100,000

• $80,000

• $120,000

• $220,000

Multiple Choice

Restrictive endorsements are more secure than blank endorsements.

• True

• False

Multiple Choice

When you are asked debit or credit when using your debit card at a POS terminal it is safer to answer debit.

• True

• False

Multiple Choice

Which of the following has the lowest liquidity

• Cash

• House

• Savings Account

• Checking Account

Multiple Select

In order to perform a transaction at an ATM you need which of the following? (Check all that apply)

• Account number

• PIN

• License

• ATM Card

Multiple Choice

Another name for a cancelled check is a voided check.

• True

• False

Multiple Choice

Credit Unions are owned by stock holders who want to earn a profit on their investment.

• True

• False

Multiple Choice

The number one factor that affects your credit score is paying on time.

• True

• False

Multiple Choice

A numerical measure of your creditworthiness is your credit ___.

• report

• capacity

• card

• score

Multiple Choice

Some banks will allow you to deposit a check made payable to you using an app on a phone.

• True

• False

Multiple Choice

An asterisk on a bank statement often symbolizes that there is a break in the check sequence.

• True

• False

Multiple Choice

$100 compounded annually for two years at 3% interest would provide the investor with how much of a return?

• $3.00

• $6.00

• $6.09

• $3.03

Multiple Choice

FDIC and NCUA protect account holders up to ___ per depositor ownership category.

• $500,000

• $100,000

• $10,000

• $250,000

Multiple Choice

If you have credit cards that have a total credit limit of $5,000, and you have only $100 remaining before you reach your credit limit. Your credit score will be effected ___.

• positively

• negatively

• not at all

Multiple Choice

Saving for retirement is often considered a medium range goal.

• True

• False

Multiple Choice

Filing for bankruptcy will stay on your credit record for at least ___.

• 3 years

• 7 years

• 15 years

• your lifetime

Multiple Choice

If you are creditworthy, you are a poor credit risk.

• True

• False

Multiple Choice

Debt collectors can suggest you will be arrested if you don't pay them

• True

• False

Multiple Select

Which of the following are part of the reconciliation process? (Check all that apply)

• Double all deposits on the bank statement to find an accurate balance.

• Note all checks and withdrawals you have made that are not shown on your statement

• Note any deposits made since the statement date.

• Compare the account statement to your check register for service charges and other transactions not recorded in your register.

Multiple Select

In order to determine your character lenders might look at which of the following? (Check all that apply)

• Length of employment

• Record of paying your debts on time

• How much you earn

• How long you have lived at the same address

• What you currently own

Multiple Choice

When you paycheck is sent electronically to your bank it is referred to as a direct ___.

• debit

• withdrawal

• deposit

• transaction

Multiple Choice

A process that allows individuals to compare their bank account records to the bank's records in order to uncover any possible discrepancies is commonly referred to as ___.

• Reconciling

• Proofing

• Withdrawing

• Depositing

Multiple Choice

Investing for your retirement by playing the Powerball is a good investment.

• True

• False

Multiple Choice

APR is the actual Rate of Return on your investment. It takes into account compounding.

• True

• False