Practice Certification Test Questions With Correct Answers 100% Verified.

If a person makes a deposit of $10,000 or more into a bank account, the bank but notify the? - correct answers U.S Treasury Department. A blank endorsement on a check? - correct answers Creates a check that can be cashed by anyone. A person is depositing $20 in cash & a check for $50. On the checking account deposit slip, the person should? - correct answers List the cash deposit separately from the check as well as the total of the deposit. Employees prefer direct deposits because? - correct answers The money is generally deposited in their checking account sooner than it would be if they had to deposit it in person. The term used to describe the ease and speed with which you can convert savings or an investment to cash is? - correct answers Liquidity. Which of the following is considered to be open-end credit? - correct answers Department store charge cards. When a person brings an item to a pawnshop to obtain cash, the transaction is considered? - correct answers A collateralized loan. To qualify for a Federal Housing Administration loan, a person must generally? - correct answers Fulfill income guidelines. What is meant by an uncollateralized loan? - correct answers A personal loan without assets to cover the loan amount. A person has 3 credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take? - correct answers Notify the credit card companies in order to negotiate a new payment plan. When a person declares bankruptcy that fact will appear on the persons credit report for how long? - correct answers 10 years. Predatory lending practices do not include which of the following? - correct answers A loan that you can afford with an interest rate that is the same as the interest rate being charged by at least 3 other financial institutions. When you mail your credit card payment on the due date, your payment will be considered? - correct answers Late, and the company will assess you a late fee. Which of the following does the Federal Reserve use to regulate the nations money to supply? - correct answers Monetary policy. New coins & currency make their way into the general economy, consumers & businesses, through the distribution system of the? - correct answers Federal Reserve System. Money in the U.S includes? - correct answers Checking account balances on which checks can be drawn. Jami lost her debit card. She did not report it missing for 3 months. If an unauthorized person used her debit card, her maximum liability is? - correct answers Unlimited liability. Identify the background color of a U.S $5.00 bill. - correct answers Green. A man budgeted $200 a month for clothing. This month the man spent $150 on clothing therefore that budget item is considered to have? - correct answers A budget variance. A person's debt ratio shows the relationship between debt & net worth. The lower the ratio the ? - correct answers Better off financially the person is. One of the benefits of holding an investment for over a year rather than selling it in less than a year is that the? - correct answers Capital gains on the investment will be taxed at a lower rate. A person complains about how expensive it is to be a cigarette smoker. One of the reasons cigarettes are so expensive is that? - correct answers The government imposes an excise tax on them. Financial planning helps individuals to? - correct answers Have strategies for saving & investing. The term that best describes money is left over after paying taxes, fixed and other essential living expenses, is? - correct answers Disposable income. You want to gain control over your income and spending so that you will be able to save money. Which step will help you the most? - correct answers Developing a budget. Spreading one's assets across several types of saving and investment products to manage risk is called? - correct answers Diversification. Which of the following careers would be possible choices for someone interest in money & finance? - correct answers Insurance actuary. Financial planning is important because it helps you to? - correct answers Reach financial goals and protect your assets. A company offers a defined-contribution pension plan which means that upon retirement the employee will receive? - correct answers The total amount of money contributed plus investment earnings. After 5 yrs. of owning a Roth Individual Retirement Account, a person wants to buy his first home, the person can withdraw money from the Roth IRA... - correct answers Tax & penalty free. A pharmacy is to drugs as the American Stock Exchange is to? - correct answers Securities.