EPF Final Exam Review

When a person uses an ATM card to obtain money from a checking account, the money is deducted from this account

• 30 days after the withdrawal is made.

• as soon as the withdrawal is made.

• 24 hours after the withdrawal is made.

• 24 hours after the withdrawal is made.

David bought stock for $4,000 and one year later he sold it for $1,000. The sale resulted in a:

• Yield

• Capital Loss

• Market value

• Price Earning

The National Credit Union Administration (NCUA) insures accounts in:

• Commercial banks

• Credit unions

• Brokerage firms

• Savings banks

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:

• Salaries, wages, and tips

• Dividends and interest

• Profits from business

• Rents

A type of electronic funds transfer (EFT) is:

• An ATM transaction

• A deposit made with a bank teller

• Not widely used by consumers

• A transaction made with a check

Shares of stock are also known as:

• Bonds

• Money market funds

• Debts

• Equities

How does the Federal Deposit Insurance Corporation(FDIC) protect consumers?

• It insures consumer deposits even if a banking system fails

• It ensures that banks make a profit for investors

• It guarantees consumers a livable income

• It grants credit to consumers in need

How can the Federal Reserve implement expansionary monetary policy?

• Reduce aggregate demand

• Increasing money in circulation

• Increase government spending

• Trying to generate a budget surplus

Which of these can have a negative impact on someone's financial goals?

• Dropping out of high school

• Getting a low-interest loan for a car

• Using credit cards to build a good credit score

• Getting a full-time job while attending college

The Federal Reserve would try to implement an expansionary monetary policy through which measure?

• Reducing aggregate demand

• Increasing currency in circulation

• Increasing government spending

• Trying to generate a budget surplus