FHCE 3200 Module 4 UPDATED ACTUAL
Exam Questions and CORECT Answers
Banking Account Types: - CORRECT ANSWER -checking accounts (convenient, safe,
liquid)
-savings (available options for short term savings; preferably safer low risk assets-usually
generate low returns, but provides safety of capital)
Checking accounts: - CORRECT ANSWER -named derived from an account that enables the
account holder to write checks
-a check is simply your written order to your bank to pay a third party
-checks have changed very little over time
Federal Reserve Act of 1913 - CORRECT ANSWER set in the motion the creation of a
national system where a check written in one city at one bank could be cashed in another city at
another bank
Bank Routing Number - CORRECT ANSWER 9 digit code on lower left check; in
combination with a bank account, which act as a payment trail for transferred funds
___ of american's conduct business on daily basis without a checking account. - CORRECT
ANSWER 8%; these consumers are forced to us cash for most purchases
3 major reasons to have a checking account: - CORRECT ANSWER -you need an account
that can accept your wages and salary income in the form of a direct deposit
-protection: checking accounts are insured by FDIC Deposit Insurance Coverage, (coverage up
to at least $250,000 in case the bank was to go out of business)
-ability to use debit cards
What to look for in a bank: - CORRECT ANSWER -reasonable monthly fee (<$5/mon)
-no monthly fees for debit cards
, -free use of in-network ATMs
-low minimum balance requirements
-accounts that allow unlimited withdrawals and checks on a monthly basis
-requires no minimum, or a smaller dollar amount
Debit Cards: - CORRECT ANSWER a substitute for using written checks, and cash;
electronic transactions account for more transactions than transactions that involve a written
check
Credit Scores & Credit Reports - CORRECT ANSWER used by merchants, lenders, rental
agencies, employers, businesses, and governmental organizations as a tool to screen the credit-
worthiness of people
What do financial institutions use credit scores for? - CORRECT ANSWER to identify people
who are a low credit risk from people who are a high credit risk
Three major credit rating agencies: - CORRECT ANSWER -experian
-trans union
-equifax
How often should one check their credit report? - CORRECT ANSWER typically we have
access to at least one free credit report from each major credit reporting agency per year; Georgia
has access to 2 credit reports
how to check your credit report once every 4 months: - CORRECT ANSWER -request a
credit report from Experian in January for 2015
-request another from Trans Union in May 2015
-request a third from equinox 2015
-request again from Experian in January 2016
Exam Questions and CORECT Answers
Banking Account Types: - CORRECT ANSWER -checking accounts (convenient, safe,
liquid)
-savings (available options for short term savings; preferably safer low risk assets-usually
generate low returns, but provides safety of capital)
Checking accounts: - CORRECT ANSWER -named derived from an account that enables the
account holder to write checks
-a check is simply your written order to your bank to pay a third party
-checks have changed very little over time
Federal Reserve Act of 1913 - CORRECT ANSWER set in the motion the creation of a
national system where a check written in one city at one bank could be cashed in another city at
another bank
Bank Routing Number - CORRECT ANSWER 9 digit code on lower left check; in
combination with a bank account, which act as a payment trail for transferred funds
___ of american's conduct business on daily basis without a checking account. - CORRECT
ANSWER 8%; these consumers are forced to us cash for most purchases
3 major reasons to have a checking account: - CORRECT ANSWER -you need an account
that can accept your wages and salary income in the form of a direct deposit
-protection: checking accounts are insured by FDIC Deposit Insurance Coverage, (coverage up
to at least $250,000 in case the bank was to go out of business)
-ability to use debit cards
What to look for in a bank: - CORRECT ANSWER -reasonable monthly fee (<$5/mon)
-no monthly fees for debit cards
, -free use of in-network ATMs
-low minimum balance requirements
-accounts that allow unlimited withdrawals and checks on a monthly basis
-requires no minimum, or a smaller dollar amount
Debit Cards: - CORRECT ANSWER a substitute for using written checks, and cash;
electronic transactions account for more transactions than transactions that involve a written
check
Credit Scores & Credit Reports - CORRECT ANSWER used by merchants, lenders, rental
agencies, employers, businesses, and governmental organizations as a tool to screen the credit-
worthiness of people
What do financial institutions use credit scores for? - CORRECT ANSWER to identify people
who are a low credit risk from people who are a high credit risk
Three major credit rating agencies: - CORRECT ANSWER -experian
-trans union
-equifax
How often should one check their credit report? - CORRECT ANSWER typically we have
access to at least one free credit report from each major credit reporting agency per year; Georgia
has access to 2 credit reports
how to check your credit report once every 4 months: - CORRECT ANSWER -request a
credit report from Experian in January for 2015
-request another from Trans Union in May 2015
-request a third from equinox 2015
-request again from Experian in January 2016
