Wise Financial Literacy Test -- Banking

If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the

• U. S. Treasury Department.

• Federal Deposit Insurance Corporation. (FDIC)

• State Banking Commission

• Federal Reserve Board.

Which financial product can you buy for $25, is safe, and will be worth $50 at a future date?

• Series EE savings bond

• Certificate of deposit

• 50 shares of ABC Co. stock

• ABC Co. bond

A blank endorsement on a check

• Has no effect on the check

• Cancels the check

• Creates a check that can be cashed by anyone

• Restricts the use of the check

Patty is selling her car through a newspaper advertisement. When she finds a buyer, she wants a form of payment which is guaranteed to be good. Which form of payment should she avoid?

• cash

• certified check

• cashier's check

• personal check

Which financial product typically pays the highest rate of interest?

• savings account

• money market account

• certificate of deposit

• common stock

Safe-deposit boxes are

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

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

• Available at all banks

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

Which financial product has the most predictable income?

• stock

• real estate

• certificate of deposit

• option/future contract

Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:

• an installment payment

• a savings plan

• an atm transaction

• a debit card transaction

Pat has a savings account and a car loan from a not-for-profit financial institution owned by its members. She is probably a member of what type of financial institution?

• credit union

• commercial bank

• savings and loan association

• investment club

The most liquid type of investment is:

• a corporate bond

• a certificate of deposit

• real estate holding

• a money market account