W!SE Practice: Money

Which of the following does the Federal Reserve use to regulate the nation's money supply?

• Fiscal policy
• Proposing legislation
• Monetary policy
• Regulations

Which of the following is a disadvantage of using phone cards, debit cards, electronic transfers, and ATM cards?

• Consumers can make purchases without of writing check
• They expose consumers to greater likelihood of identity theft
• They slow down the economy's recovery
• They decrease availability of currency in the economy

Which of the following statements is usually true about individuals who are financially literate?

• They have high debt and low savings
• They understand the basics of personal finance and money management
• They almost always choose stocks and bonds that increase in value
• They achieve all of their financial goals

To make sure you will always remember your automated teller machine (ATM) card personal identification number (PIN), you should write the PIN and keep it:

• In your wallet
• In your checkbook
• On your ATM card
• In a secure place at home

Identify the background color of a U.S. $5.00 bill

• Orange
• Red
• Blue
• Green

A cash card generally:

• Can be used in the same way that someone uses a check to pay bills by mail
• Is purchased with a specific amount of money that can be used to pay for goods or services
• Is the same as a credit card which means you can use it to pay the minimum on a bill
• Is the same as a debit card and is always linked to a specific checking account

Susan gives Marie her ABC Credit Union debit card and personal identification number (PIN) so Marie could get $25 from Susan's bank account.  Marie withdrew $100 instead of the agreed to $25.  How can Susan get the $75 back?

• Demand the ABC Credit Union reimburse her for Marie's unauthorized transaction
• File a complaint with the Federal Reserve Board to reimburse her for Marie's unauthorized transaction
• Demand that the bank where Marie has her checking account reimburse her for Marie's unauthorized transaction
• No bank or government agency is obligated to reimburse Susan because she authorized Marie to use her ATM card and PIN

The denominations of coins in the United States are:

• $.01, $.05, $.10, $.25, $.50, and $1.00
• $.01, $.30, $.50, and $5.00
• $.05, $.10, $.50, $.75, and $10.00
• Coins can be in any denomination a consumer desires

The common name for U.S. currency is:

• Orange backs
• Red Backs
• Blue Backs
• Green backs

The primary sources of income for most people between the ages of 20 and 35 who are not living on a pension or social security are:

• Profits from business
• Dividends and interest
• Rents
• Salaries, wages, and tips