FCS-340 Exam 2 | Questions with 100% Verified Answers |
Latest Update 2026/2027
Question: If you lose your debit card and notify your financial institution within two days, how
much are you potentially liable for?
Answer: Anywhere between $50 to $500
Question: When you select a financial services provider, what are major factors to consider?
Answer: Convenience; Service; Interest rates (borrowing); Fees
Question: What type of financial services does a credit card company provide
Answer: Short-term lending
Question: What type of financial services does a investment company provide
Answer: Mutual funds, money market funds
Question: What type of financial services does a life insurance company provide
Answer: Life Insurance, savings and investments
Question: What type of financial services does a mortgage company provide
Answer: Loan for house
Question: What type of financial services does a payday loan company provide
Answer: Cash advancements with high interest rates
Question: Which of the financial services listed in Question 3 will likely provide the most
expensive access to funds?
Answer: Payday Loans
Question: What type of institution is most likely to provide a full range of financial services,
including checking, savings, and lending?
Answer: Commercial Bank
Question: Ed needed some cash quickly, so he received a short-term loan based on the value
of an old ring. Where did he go?
Answer: Pawnshop
Question: What would be considered a drawback of a savings account?
Answer: Low returns; Withdrawal Limitations; Missed Opportunities
, Question: A certificate of deposit that has different interest levels based on the stock market
performance is called a
Answer: Stock Indexed CD
Question: A savings plan requiring that a certain amount be left on deposit for a stated time
period to earn a specified interest rate
Answer: A certificate of deposit
Question: usually earns interest only if the account stays above the required amount
Answer: An interest-earning checking account
Question: 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.
Answer: A money market account
Question: A mutual fund that invests in short-term debt securities, such as commercial paper,
banker's acceptance, repurchase agreements, T-bills, and negotiable CDs.
Answer: A money market fund
Question: Previously called a passbook, or statement accounts, usually involves a low or
minimum balance and allows you to withdraw money as needed.
Answer: A regular savings account
Question: Earnings on savings can be measured by the __________
Answer: Rate of Return
Question: Earning interest on interest is called ___________________
Answer: Compounding Interest
Question: The Truth in Savings Act requires financial institutions to disclose the
_____________________________________ on savings accounts.
Answer: Annual Percentage Yield (APY)
Question: What does the term liquidity mean?
Answer: Quick availability of cash
Question: The insurance coverage provided by the FDIC for a savings account is ______________
per depositor.
Answer: $250,000
Latest Update 2026/2027
Question: If you lose your debit card and notify your financial institution within two days, how
much are you potentially liable for?
Answer: Anywhere between $50 to $500
Question: When you select a financial services provider, what are major factors to consider?
Answer: Convenience; Service; Interest rates (borrowing); Fees
Question: What type of financial services does a credit card company provide
Answer: Short-term lending
Question: What type of financial services does a investment company provide
Answer: Mutual funds, money market funds
Question: What type of financial services does a life insurance company provide
Answer: Life Insurance, savings and investments
Question: What type of financial services does a mortgage company provide
Answer: Loan for house
Question: What type of financial services does a payday loan company provide
Answer: Cash advancements with high interest rates
Question: Which of the financial services listed in Question 3 will likely provide the most
expensive access to funds?
Answer: Payday Loans
Question: What type of institution is most likely to provide a full range of financial services,
including checking, savings, and lending?
Answer: Commercial Bank
Question: Ed needed some cash quickly, so he received a short-term loan based on the value
of an old ring. Where did he go?
Answer: Pawnshop
Question: What would be considered a drawback of a savings account?
Answer: Low returns; Withdrawal Limitations; Missed Opportunities
, Question: A certificate of deposit that has different interest levels based on the stock market
performance is called a
Answer: Stock Indexed CD
Question: A savings plan requiring that a certain amount be left on deposit for a stated time
period to earn a specified interest rate
Answer: A certificate of deposit
Question: usually earns interest only if the account stays above the required amount
Answer: An interest-earning checking account
Question: 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.
Answer: A money market account
Question: A mutual fund that invests in short-term debt securities, such as commercial paper,
banker's acceptance, repurchase agreements, T-bills, and negotiable CDs.
Answer: A money market fund
Question: Previously called a passbook, or statement accounts, usually involves a low or
minimum balance and allows you to withdraw money as needed.
Answer: A regular savings account
Question: Earnings on savings can be measured by the __________
Answer: Rate of Return
Question: Earning interest on interest is called ___________________
Answer: Compounding Interest
Question: The Truth in Savings Act requires financial institutions to disclose the
_____________________________________ on savings accounts.
Answer: Annual Percentage Yield (APY)
Question: What does the term liquidity mean?
Answer: Quick availability of cash
Question: The insurance coverage provided by the FDIC for a savings account is ______________
per depositor.
Answer: $250,000
