Banking, Investing, Insurance - Interim Assessment 3

The US economy is best described as a

• Capitalist

• Communist

• Socialist

• Mixed

Which of the following is NOT a way that banks make money?

• A. Interest on personal loans

• B. Interest on savings accounts

• C. Account overdraft charges

• D. Investing insecurities

Which two items on a paycheck stub are the FICA deductions (Federal Insurance Contributions Act-US Federal Payroll Tax)?

• 401K and 403b

• Social Security and Medicare

• Social Security and Health Insurance

• 401K and Medicaid

All economies and people struggle with scarcity which is best defined as:

• unlimited quantities of resources to meet unlimited needs

• limited quantities of resources to meet limited needs

• limited quantities of resources to meet unlimited needs

• unlimited quantities of resources to meet limited needs

Company ABC has performed well during the third quarter. One can see this by comparing the revenues and expenses on which document?

• Statement of cash flows

• Balance Sheet

• Income Statement

Which of the following is true about US Currency?

• Dollars are worth more because they are backed by Gold

• Dollars used to be representative money (backed by Gold) but are now Fiat Money

• Dollars are the only example of FIAT Money

• All of the above are true statements

(a)   refers to the monetary gain or loss of an investment over time.

• ROY

• IRA

• ROI

• IRO

The risk to a bank's financial success of the ability to turn assets into cash is called an (a)   risk.

• Operational

• Credit

• Reputational

• Liquidity

Which statement is true regarding The Federal Reserve?

• The Federal Reserve is composed of 7 board members who are elected by the President.

• There are 12 regional banks created by the Federal Reserve

• The Federal Reserve was created to promote the health of the US economy and stability of the US financial system.

• All are true

What is considered a “Good through Excellent” Credit score?

• A. 350-400

• B. 400-500

• C. 500-670

• D. 670-850