ACVREP O M FINAL EXAM GUIDE 2025 WITH
CORRECTLY VERIFIED ANSWERS|GUARANTEED
PASS
Your choice of financial services will depend on what? - cash needs, savings goals
What are the three main types of financial services? - savings, payment services,
borrowing
What is the number one issue for electronic banking? - security
What three things should you be wary about? - pawnshops, check-cashing outlets, loan
stores for banking needs
When comparing financial institutions, what three things should you consider? - services,
fees, safety
What are four different options of savings accounts? - CDs, money market accounts,
saving bonds
When it comes to evaluating savings plan, what seven things should you evaluate? - rate
of return, inflation, tax considerations, liquidity, safety, restrictions, fees for a savings plan
When evaluating checking accounts, what four things should you consider?
(bank keeps your signature on file) - restrictions, fees, interest, special services
Banks led out a _________ of their deposits to add to the money supply. A savings program is
necessary to meet financial goals - percentage.
You should carefully evaluate each ________ before choosing a financial institution. -
alternative
Members of an __________ usually have a common bond, such as employment by the same
company. - credit union
A report that accounts for the differences between the bank statement a checkbook balance is
called a ______________ - bank reconcilation
,A ______ is authorized to conduct business through a charter granted by the federal or state
government. - S &L
You must grant your bank ___________ for them to conduct automatic payments on your
behalf. - authorization
Many banks will send you a ________ statement four times a year for your savings account. -
quarterly
Traditionally specializing in savings accounts and mortgage loans a ___________ now offers
checking accounts and investment services - commercial bank
Most debit card _______ do not hold you responsible for stolen funds - issuers A
All checks must have the ___________ of the payee before it can be deposited to your account.
- endorsement
A possible drawback to using an ATM for your daily cash needs is __________
a. uncertainty about how much you will need
b. the service free for its use
c. running up large bills
d. interest changes - service free for its use
The most commonly used payment service is
a. savings account
b. certificate of deposit
c. checking account
d. mutual fund - checking account
An automatic payment is when your
a. employer deposits your paycheck
b. bank withdraws money for a bill
c. friends use your PIN
d. local ATM accesses your account - bank withdraws money for a bill
,Using a debit card to pay off for a meal at a restaurant is called
a. point of sale transaction
b. a trade off
c. direct deposit
d. online transaction - point of sale transaction
Which financial institutions generally charge the highest interest rates on loans?
a. credit unions
b. mutual savings banks
c. commercial banks
d. finance companies - finance companies
The interest rate varies from month to month on money in a
a. regular savings account
b money market account
c. certificate of deposit
d. u.s. savings bond - money market account
The rate of return on an investment would be the greatest when the interest was compounded
a. daily
b. weekly
c. monthly
d. yearly - daily
What is the annual percentage yield on a deposit of $200 in an account that pays 8 percent
interest compounded twice a year
a. 4%
b. 8%
c. 8.16%
, d. 16% - 8.16%
An activity account usually requires a
a. fee for each check
b. minimum balance
c. direct deposit of paychecks
d. certain balance in a savings account - certain balance in a savings account
If a check is lost or stolen, you might ask the bank for
a. overdraft protection
b. copies of canceled checks
c. stop-payment order
d. bank reconciliation - stop-payment order
What types of financial services might help you to better manage your cash flows? -
understanding the services provided by financial institutions will help you choose the
best options to manage your money wisely.
What are the eight questions to choosing a financial institution? - 1. Does it have any
special banking services that you might need?
2. Where can you get the highest rate of interest on your savings?
3. Where can you obtain a checking account with laws (or no) fees?
4. Does it have online banking services?
5. Will you be able to borrow money from the institution when you need it?
6. Does the institution have convenient locations?
7. Is the institution FDIC- or SAIF insured?
8. Do you need an institution that offers free financial advice?
What are the four categories of financial services? - savings, payment services, other
financial institutions, borrowing
CORRECTLY VERIFIED ANSWERS|GUARANTEED
PASS
Your choice of financial services will depend on what? - cash needs, savings goals
What are the three main types of financial services? - savings, payment services,
borrowing
What is the number one issue for electronic banking? - security
What three things should you be wary about? - pawnshops, check-cashing outlets, loan
stores for banking needs
When comparing financial institutions, what three things should you consider? - services,
fees, safety
What are four different options of savings accounts? - CDs, money market accounts,
saving bonds
When it comes to evaluating savings plan, what seven things should you evaluate? - rate
of return, inflation, tax considerations, liquidity, safety, restrictions, fees for a savings plan
When evaluating checking accounts, what four things should you consider?
(bank keeps your signature on file) - restrictions, fees, interest, special services
Banks led out a _________ of their deposits to add to the money supply. A savings program is
necessary to meet financial goals - percentage.
You should carefully evaluate each ________ before choosing a financial institution. -
alternative
Members of an __________ usually have a common bond, such as employment by the same
company. - credit union
A report that accounts for the differences between the bank statement a checkbook balance is
called a ______________ - bank reconcilation
,A ______ is authorized to conduct business through a charter granted by the federal or state
government. - S &L
You must grant your bank ___________ for them to conduct automatic payments on your
behalf. - authorization
Many banks will send you a ________ statement four times a year for your savings account. -
quarterly
Traditionally specializing in savings accounts and mortgage loans a ___________ now offers
checking accounts and investment services - commercial bank
Most debit card _______ do not hold you responsible for stolen funds - issuers A
All checks must have the ___________ of the payee before it can be deposited to your account.
- endorsement
A possible drawback to using an ATM for your daily cash needs is __________
a. uncertainty about how much you will need
b. the service free for its use
c. running up large bills
d. interest changes - service free for its use
The most commonly used payment service is
a. savings account
b. certificate of deposit
c. checking account
d. mutual fund - checking account
An automatic payment is when your
a. employer deposits your paycheck
b. bank withdraws money for a bill
c. friends use your PIN
d. local ATM accesses your account - bank withdraws money for a bill
,Using a debit card to pay off for a meal at a restaurant is called
a. point of sale transaction
b. a trade off
c. direct deposit
d. online transaction - point of sale transaction
Which financial institutions generally charge the highest interest rates on loans?
a. credit unions
b. mutual savings banks
c. commercial banks
d. finance companies - finance companies
The interest rate varies from month to month on money in a
a. regular savings account
b money market account
c. certificate of deposit
d. u.s. savings bond - money market account
The rate of return on an investment would be the greatest when the interest was compounded
a. daily
b. weekly
c. monthly
d. yearly - daily
What is the annual percentage yield on a deposit of $200 in an account that pays 8 percent
interest compounded twice a year
a. 4%
b. 8%
c. 8.16%
, d. 16% - 8.16%
An activity account usually requires a
a. fee for each check
b. minimum balance
c. direct deposit of paychecks
d. certain balance in a savings account - certain balance in a savings account
If a check is lost or stolen, you might ask the bank for
a. overdraft protection
b. copies of canceled checks
c. stop-payment order
d. bank reconciliation - stop-payment order
What types of financial services might help you to better manage your cash flows? -
understanding the services provided by financial institutions will help you choose the
best options to manage your money wisely.
What are the eight questions to choosing a financial institution? - 1. Does it have any
special banking services that you might need?
2. Where can you get the highest rate of interest on your savings?
3. Where can you obtain a checking account with laws (or no) fees?
4. Does it have online banking services?
5. Will you be able to borrow money from the institution when you need it?
6. Does the institution have convenient locations?
7. Is the institution FDIC- or SAIF insured?
8. Do you need an institution that offers free financial advice?
What are the four categories of financial services? - savings, payment services, other
financial institutions, borrowing
