Financial Management Test

If an individual puts $400 into a savings account with a simple interest rate of 1.25% APR how much will be in the account after 10 years assuming they don’t add anymore?

• $900

• $450

• $425

• $550

When a bank offers you a mortgage but part of the agreement is that if repeatedly miss payment they will take the house from you this is known as _____________.

• Capacity

• Capital

• Character

• Collateral

What is an APR?

• The percent interest compounded each month

• The percent profit you will make on an investment each year

• The percent of a credit card bill that is charged interest

• The percent interest paid over the course of a year

When a bank is offering you a loan and checks your history of repaying debts, credit card bills, etc. which of the 5 Cs are they investigating?

• Character

• Capacity

• Collateral

• Capital

If a credit card has an APR of 18% how much interest will you be charged if you forget to pay your bill one month?

• 18%

• 5%

• 1.5%

• 36%

What does FDIC stand for?

• Federal Debt Insurance Company

• Family Direct Insurance Coverage

• Financial Deposit Interest Corporation

• Federal Deposit Insurance Corporation

Which of the following best describes a 529 plan?

• A retirement plan

• An educational savings plan

• An investment in stocks

• A checking account for teenagers

When a debit card is swiped where does the money come from?

• Savings account

• Checking account

• Credit

• 529 plan

Which of the following is true of a bank?

• Is technically owned by people that hold accounts

• Runs as a for profit business

• Has much higher interest rate for savings accounts

• Is a non profit financial institution

A Registered Investment Adviser is best equipped to

• File your taxes

• Manage your certificates of deposit

• Recommend the best companies to buy stock in

• Control your savings account