PF Study Guide

What are the advantages of a credit union?

• They usually have lower fees, loan rates

• They offer higher interest rates on loans

• They are open 24/7 like online banks

• They provide unlimited credit cards

Define blank endorsement.

• an endorsement consisting only of the endorser's signature

• an endorsement that restricts further negotiation

• an endorsement that guarantees payment

• an endorsement made in the presence of a notary

Define special endorsement. Example: PAY TO THE ORDER OF JOHN SMITH SIGN YOUR NAME

• an endorsement that transfers the right to cash the check to someone else

• an endorsement that restricts the check to deposit only

• an endorsement that cancels the check

• an endorsement that requires two signatures

Define restrictive endorsement. Example: For deposit only SIGN YOUR NAME

• An endorsement found on the back of a check restricting further transfer of a check's ownership

• A signature that allows anyone to cash the check

• A type of loan agreement between two parties

• A method of electronically transferring funds

What is an outstanding check?

• An outstanding check is a check that has been written and issued by the company or person; however, it has not yet cleared the bank (not listed on the bank statement).

• An outstanding check is a check that has already been deposited and cleared by the bank.

• An outstanding check is a check that is post-dated and cannot be cashed yet.

• An outstanding check is a check that has been cancelled by the issuer.

What is the calculation for Simple Interest?

• principal x interest rate x time

• principal + interest rate + time

• principal / interest rate / time

• principal - interest rate x time

What is the role of the FDIC?

• provides insurance for depositors in insured banks up to $250,000 for accounts

• regulates interest rates for all banks in the US

• issues credit cards to consumers directly

• manages the stock market

What is a cover letter?

• Submitted with your resume/application. It explains your purpose for writing and why you are eligible for this job. This is not detailed! It is a summary of the highlights of your qualifications and should state why you are a good candidate for the job.

• A document that lists your references for a job application.

• A certificate showing your educational qualifications.

• A letter sent to decline a job offer.

One of the best things you can do when applying for a specific job is to write the resume so it is __________ for that specific job.

• customized

• general

• irrelevant

• outdated

What is liability insurance on a car?

• Cover's the other person's car if you hit them and it is your fault. It will not repair your car.

• Covers any damage to your own car regardless of fault.

• Pays for your medical bills only if you are at fault.

• Covers theft of your car and personal belongings inside.