Personal Finance Unit 4 Test

1) The FDIC in the United States insures some financial accounts up to what amount?

• a. $10,000
• b. $50,000
• c. $250,000
• d. $500,000

2) What is true about credit unions?

• a. They are not insured by the government.
• b. They are generally member owned.
• c. They only offer savings accounts.
• d. All of the above are true.

3) Web-only financial institutions do not have which of the following?

• a. Checking accounts
• b. Savings accounts
• c. Interest
• d. Physical locations

4) Mutual savings institutions are owned by who?

• a. Stock holders
• b. Members of the institution
• c. Government
• d. All of the above

5) An example of a nondepository financial institution is which of the following?

• a. Commercial bank
• b. Credit union
• c. Brokerage firm
• d. All of the above

6) What is the end of the CD account time when the money can be withdrawn?

• a. Maturity date
• b. End date
• c. Completion date
• d. Withdrawal date

7) Brokerage firms make their profits primarily in which of the following ways?

• a. Consumer deposits
• b. Government deposits
• c. Dividends
• d. Fees or commissions on sales or transfers

8) Pawnshops generally offer what type of service?

• a. Check cashing
• b. Loans on possessions
• c. High interest savings accounts
• d. Life insurance

9) What is true about certificates of deposit?

• a. They offer lower interest rates than savings account.
• b. They are the most liquid account available.
• c. The money has to remain in the account for a specified period of time.
• d. All of the above are true.

10) Who would be eligible for a 403b account?

• a. A salesperson
• b. A CEO of a Fortune 500 company
• c. A government employee
• d. Anyone