Wise Practice Test (Money)

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

• A.  Fiscal policy
• B.  Proposing legislation
• C.  Monetary policy
• D.  Regulations

Nora needed to make a long-distance call from a pay phone and did not have the cash.  She was able to make the call by using her:

• A.  Credit card
• B.  Identification card
• C.  Cash card
• D.  Traveler's check

When money is not used and goods and services are exchanged for other goods and services, this system is called:

• A.  Credit
• B.  Money
• C.  Barter
• D.  Checks

The denominations of coins in the United States are:

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

Money for saving, investing, or spending cannot be from:

• A.  An inheritance from someone who has died
• B.  Discretionary income or a gift of money  
• C.  Capital gains from a sale of stock
• D.  Capital losses from the sale of stock  

The common name for U.S. currency is:  

• A.  Orange backs
• B.  Blue backs
• C.  Green backs
• D.  Yellow backs

A cash card generally:

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

Which statement is FALSE about most ATM (Automated Teller Machine) cards?

• A.  You must have an account with a financial institution to have an ATM card.
• B.  You can always get cash anywhere in the world with no fee.
• C.  You can generally obtain information concerning your account balance(s) at an ATM machine.
• D. You can generally get cash 24 hours a day, seven days a week.      

Purchases made with your debit card are usually:

• Answer A   Deducted immediately from your checking account
• Answer B   Deducted from your credit card balance
• Answer C   Added to your credit card balance  
• Answer D   Put on your credit card bill as a cash advance

Jami lost her debit card. She did not report it missing for 3 months.  If an unauthorized person used her debit card, her maximum liability is:

• A.  $50
• B.  $500
• C.  Unlimited liability
• D.  No liability because she notified the financial institution