FCS-340 EXAM 2 QUESTIONS AND ANSWERS
If you lose your debit card and notify your financial institution within two days, how much
are you potentially liable for? - Answers -Anywhere between $50 to $500
When you select a financial services provider, what are major factors to consider? -
Answers -Convenience; Service; Interest rates (borrowing); Fees
What type of financial services does a credit card company provide - Answers -Short-
term lending
What type of financial services does a investment company provide - Answers -Mutual
funds, money market funds
What type of financial services does a life insurance company provide - Answers -Life
Insurance, savings and investments
What type of financial services does a mortgage company provide - Answers -Loan for
house
What type of financial services does a payday loan company provide - Answers -Cash
advancements with high interest rates
Which of the financial services listed in Question 3 will likely provide the most expensive
access to funds? - Answers -Payday Loans
What type of institution is most likely to provide a full range of financial services,
including checking, savings, and lending? - Answers -Commercial Bank
Ed needed some cash quickly, so he received a short-term loan based on the value of
an old ring. Where did he go? - Answers -Pawnshop
What would be considered a drawback of a savings account? - Answers -Low returns;
Withdrawal Limitations; Missed Opportunities
A certificate of deposit that has different interest levels based on the stock market
performance is called a - Answers -Stock Indexed CD
A savings plan requiring that a certain amount be left on deposit for a stated time period
to earn a specified interest rate - Answers -A certificate of deposit
usually earns interest only if the account stays above the required amount - Answers -
An interest-earning checking account
, A savings account offered by banks, savings and loan associations, and credit unions
that requires a minimum balance and has earnings based on market interest rate. -
Answers -A money market account
A mutual fund that invests in short-term debt securities, such as commercial paper,
banker's acceptance, repurchase agreements, T-bills, and negotiable CDs. - Answers -
A money market fund
Previously called a passbook, or statement accounts, usually involves a low or minimum
balance and allows you to withdraw money as needed. - Answers -A regular savings
account
Earnings on savings can be measured by the __________ - Answers -Rate of Return
Earning interest on interest is called ___________________ - Answers -Compounding
Interest
The Truth in Savings Act requires financial institutions to disclose the
_____________________________________ on savings accounts. - Answers -Annual
Percentage Yield (APY)
What does the term liquidity mean? - Answers -Quick availability of cash
The insurance coverage provided by the FDIC for a savings account is
______________ per depositor. - Answers -$250,000
Takes money directly out of account - Answers -debit card
Delaying payment, short-term loan - Answers -credit card
Electronic (paypal account) $ could be taken directly from your card - Answers -online
payment
Offered by retailer (Dillards) - Answers -stored-value card
Microchip, more info on it about you - Answers -smart card
What is a stop-payment order? When do you use it? - Answers -When you need to stop
payment on a check. If lost or stolen
Given the information here, what should Jason's adjusted checkbook balance be?
· Bank balance $400
· Outstanding checks: $229
· Deposit in transit: $50
· ATM Fee: $26
If you lose your debit card and notify your financial institution within two days, how much
are you potentially liable for? - Answers -Anywhere between $50 to $500
When you select a financial services provider, what are major factors to consider? -
Answers -Convenience; Service; Interest rates (borrowing); Fees
What type of financial services does a credit card company provide - Answers -Short-
term lending
What type of financial services does a investment company provide - Answers -Mutual
funds, money market funds
What type of financial services does a life insurance company provide - Answers -Life
Insurance, savings and investments
What type of financial services does a mortgage company provide - Answers -Loan for
house
What type of financial services does a payday loan company provide - Answers -Cash
advancements with high interest rates
Which of the financial services listed in Question 3 will likely provide the most expensive
access to funds? - Answers -Payday Loans
What type of institution is most likely to provide a full range of financial services,
including checking, savings, and lending? - Answers -Commercial Bank
Ed needed some cash quickly, so he received a short-term loan based on the value of
an old ring. Where did he go? - Answers -Pawnshop
What would be considered a drawback of a savings account? - Answers -Low returns;
Withdrawal Limitations; Missed Opportunities
A certificate of deposit that has different interest levels based on the stock market
performance is called a - Answers -Stock Indexed CD
A savings plan requiring that a certain amount be left on deposit for a stated time period
to earn a specified interest rate - Answers -A certificate of deposit
usually earns interest only if the account stays above the required amount - Answers -
An interest-earning checking account
, A savings account offered by banks, savings and loan associations, and credit unions
that requires a minimum balance and has earnings based on market interest rate. -
Answers -A money market account
A mutual fund that invests in short-term debt securities, such as commercial paper,
banker's acceptance, repurchase agreements, T-bills, and negotiable CDs. - Answers -
A money market fund
Previously called a passbook, or statement accounts, usually involves a low or minimum
balance and allows you to withdraw money as needed. - Answers -A regular savings
account
Earnings on savings can be measured by the __________ - Answers -Rate of Return
Earning interest on interest is called ___________________ - Answers -Compounding
Interest
The Truth in Savings Act requires financial institutions to disclose the
_____________________________________ on savings accounts. - Answers -Annual
Percentage Yield (APY)
What does the term liquidity mean? - Answers -Quick availability of cash
The insurance coverage provided by the FDIC for a savings account is
______________ per depositor. - Answers -$250,000
Takes money directly out of account - Answers -debit card
Delaying payment, short-term loan - Answers -credit card
Electronic (paypal account) $ could be taken directly from your card - Answers -online
payment
Offered by retailer (Dillards) - Answers -stored-value card
Microchip, more info on it about you - Answers -smart card
What is a stop-payment order? When do you use it? - Answers -When you need to stop
payment on a check. If lost or stolen
Given the information here, what should Jason's adjusted checkbook balance be?
· Bank balance $400
· Outstanding checks: $229
· Deposit in transit: $50
· ATM Fee: $26
