Financial Responsibility Quiz

A person lost a debit card and did not report it missing for three months. If an unauthorized person used her debit card, the maximum the card owner may be responsible for is:

• $50

• $500

• The entire amount of debit transactions

• Zero, if reported to the financial institution

Jacob lost his debit card. If Jacob reports his lost debit card within two business days, he can be held responsible for:

• Up to $50 of unauthorized transactions

• Up to $500 of unauthorized transactions

• All unauthorized without limit

• No purchases

Jim’s take-home pay (net pay) is $1,500 per month. His monthly expenses are: Rent $1,000 / Food $100 / Other expenses $200. How long will it take him to accumulate savings of $600?

• 1 month

• 2 months

• 3 months

• 4 months

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

• Credit Unions

• Commercial Banks

• Brokerage Firms

• Savings Banks

The National Credit Union Administration (NCUA) provides:

• Check cashing services for accounts in credit unions

• Insurance protection for accounts in credit unions

• Loans to consumers with accounts in credit unions

• Mortgages for account holders in credit unions

Which financial product has the MOST predictable income?

• Stock

• Real estate

• Certificate of deposit

• Adjustable rate mortgage

What action can the Federal Reserve System (Fed) take to stimulate the economy during a recession?

• Raise short-term interest rates

• Lower short-term interest rates

• Keep short-term interest rates the same and raise long-term interest rates

• Keep short-term interest rates the same and lower long-term interest rates

A person’s savings account earned interest. This person wants to know if he must pay taxes on the interest earned. What would the IRS tell him?

• Interest earned on savings accounts and checking accounts is not taxable

• A sales tax will be charged on the interest earned

• Interest earned that is more than $10 is income and is taxable

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

A person deposits a $200 check from his sister into his checking account. When will that money be available for him to withdraw from his account?

• As soon as the check is deposited

• Generally, within one to three days after the check is deposited

• When the FDIC is notified the check was deposited

• On the date his sister wrote the check

A person has a checking account with overdraft protection. If this person writes a check for more than the balance in her checking account, what is likely to happen?

• She will be charged a fee in addition to paying interest on the amount of money the bank has loaned her to cover the check

• She will have to deposit money into the account before the monthly statement is issued to avoid paying a fee and interest

• She will stop earning interest on any account she has at that bank

• She will cover the cost of the check by having the amount charged to her credit card