W!SE Prep Money, Intro to Finance

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

• Fiscal Policy

• Proposing legislation

• Monetary Policy

• Regulation

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

• You must have an account with a financial institution to have an ATM card.

• You can always get cash anywhere in the world with no fee

• You can generally obtain information concerning your account balance(s) at an ATM machine

• You can generally get cash 24 hours a day seven days a week

A type of electronic funds transfer (EFT) is:

• A transaction made with a check

• A deposit made with a bank teller

• Not widely used by consumers

• An ATM transaction

Money in the United States includes:

• Gold

• Checking account balances on which checks can be drawn

• Barter

• Diamonds

Nora needed to buy food and did not have the cash, but had money in the bank. She was able to make the purchase by using her:

• Credit Card

• Identification Card

• Debit Card

• Cash card

Money for saving, investing, or spending cannot be from

• An inheritance from someone who has died

• Discretionary income or a gift of money

• Capital gains from a sale of stock

• Capital losses from the sale of stock

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

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:

• $50

• $500

• Unlimited liability

• No liability because she reported it

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

• Credit

• Money

• Barter

• Checks

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

• Consumers can make purchases without writing a 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