Banking

"The Fed" is short for:

• The Federal Reserve System

• Congress

• FBI

• The Federal Deposit Insurance Corporation

A bank Certificate of Deposit is a:

• Savings instrument that requires a deposit for a period of time during which the saver can withdraw money from the plan at any time without a penalty

• Savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals

• Cash deposit in a savings account that earns interest

• Certificate for deposits that are issued for half the face value

Safe-deposit boxes are:

• A free benefit for accounts with deposits starting at $50,000

•  Available at all banks

• Convenient and accessible at any hour of the day or evening   

• Safe and can be accessed only by the owner of the box

Frankie's savings account has earned a lot of interest. He wants to know if he must pay taxes on the interest earned. What would the IRS tell him?

• Interest earned on savings accounts is not taxable

• A sales tax will be charged on the interest earned

• Savings account interest is taxable

• If the interest is under $50, it is not taxable

The term used to describe the ease and speed with which you can convert savings or an investment to cash is:

• Convertibility

• Principal

• Liquidity

• Rate of return

The financial institution where Ms. Sanchez has her checking account will continue to pay out money for the checks she writes as long as:

• She uses checks from her checkbook

• The financial institution has sufficient funds

• There is enough money in Ms. Sanchezs account to cover the amount of the checks

• She maintains a good record of deposits and handles her account responsibly

Employees prefer direct deposits because:

• There is a small fee for the service

• The danger of losing a paycheck is slightly reduced

• The money is generally deposited in their checking account sooner than it would be if they had to deposit it in person

• Direct deposits earn a higher rate of interest

Margaret wants to store a valuable coin collection and important papers. Generally, consumers should:

• Store valuables in a cabinet at home

• Rent a safe deposit box for their valuables

• Hand valuables over to their attorney

• Store valuables in locked drawer

You have a checking account balance of $100 and you deposit a personal $200 check from your brother in your checking account. When will you be able to withdraw $150 in cash?

• The same day as the $200 deposit

• 3 to 7 days later, depending on your bank's check clearance policy

• After receiving a checking account statement at the end of the month

• On the day you make your next deposit

A blank endorsement on a check:

• Has no effect on the check

• Cancels the check

• Restricts the use of the check

• Creates a check that can be cashed by anyone