MoneyPower: Practice Questions 10 Questions Difficult

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

• US Treasury Department.

• Federal Deposit Insurance Corporation. (FDIC).

• State Banking Commission.

• Federal Reserve Board.

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

• Credit unions

• Commercial banks

• Brokerage firms

• Savings banks

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

• a collateralized loan.

• a custodial payment.

• an unsecured loan.

• a sales agreement.

What is meant by an uncollateralized loan?

• A loan not backed by a co-signer who agrees to cover the amount of the loan.

• A personal loan without assets to cover the loan amount.

• A home equity loan.

• A loan taken on a life insurance policy.

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

• Fiscal policy

• Proposing legislation

• Monetary policy

• Regulations

One of the benefits of holding an investment for over a year rather than selling it in less than a year is that the

As an investment, a person decides to buy a small house that has three rental apartments. The profits from this investment may be lower than expected if the

• A tenant in an apartment decides to paint the hallways.

• mortgage on the house is paid off.

• taxes on the house are lowered.

• one of the apartments is not rented.

• A more of the same stock.

• stocks that are similar to those already owned.

• preferred stock in the corporation.

• bonds in the corporation.

To determine the time value of depositing $100 in a savings account, a person needs to know the interest rate and

• her total income.

• the rate of inflation.

• whether the account is FDIC protected.

• whether the bank offers overdraft protection.

For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receive

• A one-fifth of the $20,000 face value.

• $20,000 less the premiums paid.

• a calculated amount of money which includes the premiums paid as well as the interest on that money.

• a calculated amount of money that must be converted to a term life insurance policy.