PFIN Unit 2 Test Review

Which of the following is considered the most liquid type of financial asset?

• Certificate of Deposit

• Money Market Mutual Fund

• Checking Account

• Savings Bond

What is a major downside of using out-of-network ATMs?

• You cannot access your balance

• They can charge high fees

• They limit your withdrawal amount

• They require additional PINs

Which financial institution is typically nonprofit and serves members with a common affiliation?

• Commercial Bank

• Savings and Loan

• Credit Union

• Investment Bank

FDIC insurance currently protects deposits up to what amount per depositor, per institution?

• $100,000

• $200,000

• $250,000

• $500,000

Which of these accounts is not insured by the FDIC or NCUA?

• Money Market Deposit Account

• Savings Account

• Money Market Mutual Fund

• Checking Account

Which account type is best suited for frequent transactions?

• Certificate of Deposit

• Savings Account

• Money Market Mutual Fund

Which type of account typically limits you to six withdrawals per month?

• NOW Account

• Money Market Deposit Account

• Checking Account

• Certificate of Deposit

What does the strategy “Pay Yourself First” encourage individuals to do?

• Pay bills early to avoid interest

• Put money into savings before spending

• Pay off credit card debt immediately

• Invest only in high-yield accounts

What type of check is guaranteed by a bank and typically used for large purchases?

• Personal Check

• Traveler’s Check

• Certified Check

• Third-party Check

Which law governs electronic funds transfer and consumer protections?

• Federal Reserve Act

• Truth in Savings Act

• Electronic Funds Transfer Act

• Fair Credit Reporting Act