Semester 1 Exam

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 Bank

When a person brings an item to a pawnshop to obtain cash, the transaction is considered:

• A custodial payment

• An unsecured loan

• A collateralized loan

• A sales agreement

A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take?

• Notify the credit report agency on order to avoid a late fee

• Notify the credit card companies in order to negotiate a new payment plan

• File for bankruptcy on order to maintain ones current credit score

• Contact the Internal Revenue Services in order to avoid paying income tax this year

How can you avoid becoming a victim of identity theft?

• Avoid giving your security number on a phone call you did not initiate

• Leave your wallet containing personal information where it can be stolen

• Keep your PIN on your ATM card

• Avoid using your credit card to charge purchases on the phone

Consumer Credit Counseling Services (CCCS) offer:

• Retirement Plans

• Stocks and Bonds

• Insurance Policies

• Debt Repayment Plans

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

• Fiscal Policy

• Proposing Legislation

• Monetary Policy

• Regulations

Mrs. Knott gives Mrs. Moore her ABC Credit Union debit card and personal identification number (PIN) so Mrs. Moore could get $25 from Mrs. Knott's bank account. Mrs. Moore withdrew $100 instead if the agreed $25. How can Mrs. Knott get the $75 back?

• Demand the ABC Credit Union reimburse her for Mrs. Moore's unauthorized transaction

• File a complaint with the Federal Reserve Board to reimburse her for Mrs. Moore's transaction

• Demand that the bank where Mrs. Moore has her checking account reimburse her for her Mrs. Moore's unauthorized transaction

• No bank or government agency is obligated to reimburse Mrs. Knott because she authorized Mrs. Moore to use her ATM card and PIN

Electricity and food expenditures are

• Variable expense that change from one month to another

• Discreet expenses that do not have to be paid monthly

• Fixed expenses that remain the same from one period to another

• Personal expenses for an individual or family

In creating her budget, Ann realizes that her expenses exceed her income. Ann should immediately try to:

• Apply for a loan

• Reduce or eliminate some expenses

• Ignore her budget until she has more income

• Open an IRA account

Buying a treasury bill (T-bill) is best for investors who are looking for:

• a place to invest between $100-$500

• a secure, low risk investment

• a higher yield on their investment than corporate bonds offer

• an investment that matures in 10-30 years