FCS 340 EXAM 2 ACTUAL TEST PAPER QUESTIONS CORRECT ANSWERS GRADED A PLUS
Question:
Monetary Assets
Answer:
- financial resources that are legal tender (cash) or can be converted to legal tender very quickly ex:
currency in wallet, coins in a pickle jar, checkings/savings accounts, certificates of deposit, money
market accounts
Question:
Goals of effective cash management
Answer:
- convenience cost consideration security gain
Question:
Convenience
Answer:
easy-to-access services without travel or hassle
Question:
Cost
Answer:
you are not charged fees and/or penalties
Question:
,consideration
Answer:
you can get personal help when you need it
Question:
security
Answer:
low risk of losing any money
Question:
gain
Answer:
you are paid some interest from those who use your cash
Question:
liquidity
Answer:
refers to how quickly and easily you can access your money
Question:
emergency fund
Answer:
-liquid financial resources to meet unexpected and immediate needs should total 3-6 months of
living expenses (or even income)
Question:
Federal Deposit Insurance Corporation (FDIC)
,Answer:
- government agency which deposits at most commercial banks up to $250,000 per depositor.
$500,000 for joint depositors
Question:
Checking Accounts
Answer:
Question:
National Credit Union Administration
Answer:
Question:
Savigns Accounts
Answer:
Question:
Credit Bureaus
Answer:
Credit bureaus, also called credit agencies or credit reporting agencies, are companies that collect
credit information about individuals. They then calculate a credit score for each individual based on
this information. Note that credit bureaus are private, for- profit businesses-they are not part of the
government, though they are overseen by various government agencies. In the United States, the
three major credit bureaus are Equifax, Experian, and TransUnion.
, Question:
Payday Loan
Answer:
a relatively small amount of money lent at a high rate of interest on the agreement that it will be
repaid when the borrower receives their next paycheck.
Question:
Debt consolidation
Answer:
The act of combining all debts into one monthly payment, typically extending the terms and the
length of time required to repay the debt.
Question:
Tracking Cash Flow
Answer:
Question:
Credit
Answer:
An arrangement to receive cash, goods, or services now and pay for them in the future.
Question:
Interest
Answer:
A sum paid or charged for the use of money or for borrowing money
Question:
Monetary Assets
Answer:
- financial resources that are legal tender (cash) or can be converted to legal tender very quickly ex:
currency in wallet, coins in a pickle jar, checkings/savings accounts, certificates of deposit, money
market accounts
Question:
Goals of effective cash management
Answer:
- convenience cost consideration security gain
Question:
Convenience
Answer:
easy-to-access services without travel or hassle
Question:
Cost
Answer:
you are not charged fees and/or penalties
Question:
,consideration
Answer:
you can get personal help when you need it
Question:
security
Answer:
low risk of losing any money
Question:
gain
Answer:
you are paid some interest from those who use your cash
Question:
liquidity
Answer:
refers to how quickly and easily you can access your money
Question:
emergency fund
Answer:
-liquid financial resources to meet unexpected and immediate needs should total 3-6 months of
living expenses (or even income)
Question:
Federal Deposit Insurance Corporation (FDIC)
,Answer:
- government agency which deposits at most commercial banks up to $250,000 per depositor.
$500,000 for joint depositors
Question:
Checking Accounts
Answer:
Question:
National Credit Union Administration
Answer:
Question:
Savigns Accounts
Answer:
Question:
Credit Bureaus
Answer:
Credit bureaus, also called credit agencies or credit reporting agencies, are companies that collect
credit information about individuals. They then calculate a credit score for each individual based on
this information. Note that credit bureaus are private, for- profit businesses-they are not part of the
government, though they are overseen by various government agencies. In the United States, the
three major credit bureaus are Equifax, Experian, and TransUnion.
, Question:
Payday Loan
Answer:
a relatively small amount of money lent at a high rate of interest on the agreement that it will be
repaid when the borrower receives their next paycheck.
Question:
Debt consolidation
Answer:
The act of combining all debts into one monthly payment, typically extending the terms and the
length of time required to repay the debt.
Question:
Tracking Cash Flow
Answer:
Question:
Credit
Answer:
An arrangement to receive cash, goods, or services now and pay for them in the future.
Question:
Interest
Answer:
A sum paid or charged for the use of money or for borrowing money
