WISEPRACTICETESTEXAMWITH
VERIFIEDSOLUTIONS
Which of the following does the Federal Reserve use to regulate the nation's money supply?
t t t t t t t t t t t t t t t
(Got Correct)
t
t
Correct Answer : C: Monetary policy - correct answer- t t t t t t tt t
Reason : The Federal Reserve uses monetary policy to regulate the nation's money supply.
t t t t t t t t t t t t t t
Monetary policy is directed at expanding or contracting the supply of money and credit in the t t t t t t t t t t t t t t t t
U.S. economy. In theory, if there is too little money in circulation, consumers will spend less, i
t t t t t t t t t t t t t t t t
nterest rates will be high, and unemployment will rise. In this situation, the Fed can deliberat
t t t t t t t t t t t t t t t
ely increase the amount of money in circulation, leading to lower interest rates, increases in
t t t t t t t t t t t t t t t
consumer spending, and higher employment rates. If there is too much money in circulation t t t t t t t t t t t t t
, however, prices rise and the value of the dollar decreases (inflation)
t t t t t t t t t t t
Purchases made with your debit card are usually: (Correct) t t t t t t t t
Correct Answer : A: Deducted immediately from your checking account - correct answer-
t t t t t t t t t t tt t
Reason : Debit card purchases are immediately deducted from your checking account bala
t t t t t t t t t t t t
nce while credit card purchases are added to your credit card balance. You have about 20 da
t t t t t t t t t t t t t t t t
ys after receiving a credit card bill to pay it without being charged interest. Through the use of
t t t t t t t t t t t t t t t t t t
a credit card, you get use of goods or services before they are paid for.
t t t t t t t t t t t t t t
The common name for U.S. currency is: (Correct)
t t t t t t t
Correct Answer : C: Green backs - correct answer- t t t t t t tt t
Reason : The background color of all United States currency (bills) is primarily green.
t t t t t t t t t t t t t
Question 4 : Jami lost her debit card. She did not report it missing for 3 months. If an unauthori
t t t t t t t t t t t t t t t t t t t
zed person used her debit card, her maximum liability is: (Correct)
t t t t t t t t t t
Correct Answer : C: Unlimited liability - correct answer- t t t t t t tt t
Reason : According to the Electronic Fund Transfer Act, if a consumer reports the theft or los
t t t t t t t t t t t t t t t t
s of an ATM or debit card to the issuing financial institution within two business days, he/she i
t t t t t t t t t t t t t t t t t
s liable for not more than $50 of unauthorized purchases. If reported within 60 days, the cons
t t t t t t t t t t t t t t t t
umer is liable for up to $500 of unauthorized purchases. If reported after 60 days or not report
t t t t t t t t t t t t t t t t t
ed, the consumer may be liable for the entire amount of unauthorized purchases.
t t t t t t t t t t t t
Question 5 : Identify the background color of a U.S. $5.00 bill. (Correct) t t t t t t t t t t t t
Correct Answer : C: Green - correct answer- t t t t t tt t
Reason : The background color of all United States paper currency (bills) is green.
t t t t t t t t t t t t t
Question 6 : Scott just got an ATM card to use and must choose a PIN (Personal Identificatio
t t t t t t t t t t t t t t t t t
n Number). How should he select a PIN that will give him maximum protection against anyon
t t t t t t t t t t t t t t t
e else being able to find out what the PIN is? (Incorrect)
t t t t t t t t t t t
, Correct Answer : B: Use a random selection of letters and numbers - correct answer- t t t t t t t t t t t t tt t
Reason : A PIN (personal identification number) is a secret code that protects the privacy of y
t t t t t t t t t t t t t t t t
our accounts and allows only you to access them. The numbers should not be composed of n
t t t t t t t t t t t t t t t t
umbers easily associated with the person choosing the PIN such as birth date, telephone nu
t t t t t t t t t t t t t t
mber, or street number address. It should be a random series of numbers and letters that wo
t t t t t t t t t t t t t t t t
uld be hard for unauthorized users to guess. Also, never write your PIN on your ATM or debit
t t t t t t t t t t t t t t t t t t
card or in your check book because then a thief would you?re your confidential information n
t t t t t t t t t t t t t t t
eeded to make purchases or withdraw all the money out of your account.
t t t t t t t t t t t t
Question 7 : A type of electronic funds transfer (EFT) is: (Correct) t t t t t t t t t t t
Correct Answer : D: An ATM transaction - correct answer- t t t t t t t tt t
Reason : According to the Electronic Funds Transfer Act, Electronic funds transfers (EFTs) t t t t t t t t t t t t t
are any transfers of funds, other than a transaction originated by check, draft, or other paper i
t t t t t t t t t t t t t t t t
nstrument, initiated through electronic terminal, telephone, or computer, to authorize a fina t t t t t t t t t t t
ncial institution to debit or credit an account. EFT's can be used to carry out many financial tra
t t t t t t t t t t t t t t t t t
nsactions, for example, to pay utility bills, make installment loan payments, and transfer fun t t t t t t t t t t t t t
ds from a savings account to a checking account or vice versa.
t t t t t t t t t t t
Question 8 : A high school student has begun to investigate the field of finance as a career ch t t t t t t t t t t t t t t t t t t
oice. In deciding about the field, the student should focus on which question first? (Correct)
t t t t t t t t t t t t t t
Correct Answer : A: Will I find a balance between financial rewards and personal satisfaction
t t t t t t t t t t t t t t t
from work? - correct answer- t t tt t
Reason : It is important to investigate a career with the idea of not only getting a sense of earni
t t t t t t t t t t t t t t t t t t t
ng potential, types of positions available and the training necessary to acquire these positio
t t t t t t t t t t t t t
ns but what are the chances that the individual will enjoy working in this field.
t t t t t t t t t t t t t t
Question 9 : t t t
Nora needed to make a long- t t t t t
distance call from a pay phone and did not have the cash. She was able to make the call by usi t t t t t t t t t t t t t t t t t t t t
ng her: (Correct)
t t
Correct Answer : C: Cash card - correct answer- t t t t t t tt t
Reason : Consumers purchase cash cards for a specific amount of money. The amount pai t t t t t t t t t t t t t t
d is stored in the card's memory, and the card can be used to pay for goods or services specifi
t t t t t t t t t t t t t t t t t t t
c to a particular store or action until the amount stored, or "loaded" on the card, has been spen
t t t t t t t t t t t t t t t t t t
t. The type of cash card Nora used is called a phone card. Some retail chain stores sell cash c
t t t t t t t t t t t t t t t t t t t
ards which can be used to pay for their products. Cash cards are either disposable or re-
t t t t t t t t t t t t t t t t
loadable. Disposable cash cards cannot be replenished (loaded again). With re- t t t t t t t t t t
loadable cash cards, the consumer can return to the merchant and pay to have the balance o t t t t t t t t t t t t t t t t
n the card replenished.
t t t
Question 10 : A cash card generally: (Incorrect) t t t t t t t
Correct Answer : B: Is purchased with a specific amount of money that can be used to pay for
t t t t t t t t t t t t t t t t t t t
goods or services - correct answer- t t t tt t
Reason : Consumers purchase cash cards for a specific amount of money. The amount pai t t t t t t t t t t t t t t
d is stored in the card's memory, and the card can be used to pay for goods or services specifi
t t t t t t t t t t t t t t t t t t t
c to a particular store or action until the amount stored, or "loaded" on the card, has been spen
t t t t t t t t t t t t t t t t t t
t. Some retail chain stores sell cash cards which can be used to pay for their products. Cash c
t t t t t t t t t t t t t t t t t t
ards are either disposable or re-
t t t t t
loadable. Disposable cash cards cannot be replenished (loaded again). With re- t t t t t t t t t t
VERIFIEDSOLUTIONS
Which of the following does the Federal Reserve use to regulate the nation's money supply?
t t t t t t t t t t t t t t t
(Got Correct)
t
t
Correct Answer : C: Monetary policy - correct answer- t t t t t t tt t
Reason : The Federal Reserve uses monetary policy to regulate the nation's money supply.
t t t t t t t t t t t t t t
Monetary policy is directed at expanding or contracting the supply of money and credit in the t t t t t t t t t t t t t t t t
U.S. economy. In theory, if there is too little money in circulation, consumers will spend less, i
t t t t t t t t t t t t t t t t
nterest rates will be high, and unemployment will rise. In this situation, the Fed can deliberat
t t t t t t t t t t t t t t t
ely increase the amount of money in circulation, leading to lower interest rates, increases in
t t t t t t t t t t t t t t t
consumer spending, and higher employment rates. If there is too much money in circulation t t t t t t t t t t t t t
, however, prices rise and the value of the dollar decreases (inflation)
t t t t t t t t t t t
Purchases made with your debit card are usually: (Correct) t t t t t t t t
Correct Answer : A: Deducted immediately from your checking account - correct answer-
t t t t t t t t t t tt t
Reason : Debit card purchases are immediately deducted from your checking account bala
t t t t t t t t t t t t
nce while credit card purchases are added to your credit card balance. You have about 20 da
t t t t t t t t t t t t t t t t
ys after receiving a credit card bill to pay it without being charged interest. Through the use of
t t t t t t t t t t t t t t t t t t
a credit card, you get use of goods or services before they are paid for.
t t t t t t t t t t t t t t
The common name for U.S. currency is: (Correct)
t t t t t t t
Correct Answer : C: Green backs - correct answer- t t t t t t tt t
Reason : The background color of all United States currency (bills) is primarily green.
t t t t t t t t t t t t t
Question 4 : Jami lost her debit card. She did not report it missing for 3 months. If an unauthori
t t t t t t t t t t t t t t t t t t t
zed person used her debit card, her maximum liability is: (Correct)
t t t t t t t t t t
Correct Answer : C: Unlimited liability - correct answer- t t t t t t tt t
Reason : According to the Electronic Fund Transfer Act, if a consumer reports the theft or los
t t t t t t t t t t t t t t t t
s of an ATM or debit card to the issuing financial institution within two business days, he/she i
t t t t t t t t t t t t t t t t t
s liable for not more than $50 of unauthorized purchases. If reported within 60 days, the cons
t t t t t t t t t t t t t t t t
umer is liable for up to $500 of unauthorized purchases. If reported after 60 days or not report
t t t t t t t t t t t t t t t t t
ed, the consumer may be liable for the entire amount of unauthorized purchases.
t t t t t t t t t t t t
Question 5 : Identify the background color of a U.S. $5.00 bill. (Correct) t t t t t t t t t t t t
Correct Answer : C: Green - correct answer- t t t t t tt t
Reason : The background color of all United States paper currency (bills) is green.
t t t t t t t t t t t t t
Question 6 : Scott just got an ATM card to use and must choose a PIN (Personal Identificatio
t t t t t t t t t t t t t t t t t
n Number). How should he select a PIN that will give him maximum protection against anyon
t t t t t t t t t t t t t t t
e else being able to find out what the PIN is? (Incorrect)
t t t t t t t t t t t
, Correct Answer : B: Use a random selection of letters and numbers - correct answer- t t t t t t t t t t t t tt t
Reason : A PIN (personal identification number) is a secret code that protects the privacy of y
t t t t t t t t t t t t t t t t
our accounts and allows only you to access them. The numbers should not be composed of n
t t t t t t t t t t t t t t t t
umbers easily associated with the person choosing the PIN such as birth date, telephone nu
t t t t t t t t t t t t t t
mber, or street number address. It should be a random series of numbers and letters that wo
t t t t t t t t t t t t t t t t
uld be hard for unauthorized users to guess. Also, never write your PIN on your ATM or debit
t t t t t t t t t t t t t t t t t t
card or in your check book because then a thief would you?re your confidential information n
t t t t t t t t t t t t t t t
eeded to make purchases or withdraw all the money out of your account.
t t t t t t t t t t t t
Question 7 : A type of electronic funds transfer (EFT) is: (Correct) t t t t t t t t t t t
Correct Answer : D: An ATM transaction - correct answer- t t t t t t t tt t
Reason : According to the Electronic Funds Transfer Act, Electronic funds transfers (EFTs) t t t t t t t t t t t t t
are any transfers of funds, other than a transaction originated by check, draft, or other paper i
t t t t t t t t t t t t t t t t
nstrument, initiated through electronic terminal, telephone, or computer, to authorize a fina t t t t t t t t t t t
ncial institution to debit or credit an account. EFT's can be used to carry out many financial tra
t t t t t t t t t t t t t t t t t
nsactions, for example, to pay utility bills, make installment loan payments, and transfer fun t t t t t t t t t t t t t
ds from a savings account to a checking account or vice versa.
t t t t t t t t t t t
Question 8 : A high school student has begun to investigate the field of finance as a career ch t t t t t t t t t t t t t t t t t t
oice. In deciding about the field, the student should focus on which question first? (Correct)
t t t t t t t t t t t t t t
Correct Answer : A: Will I find a balance between financial rewards and personal satisfaction
t t t t t t t t t t t t t t t
from work? - correct answer- t t tt t
Reason : It is important to investigate a career with the idea of not only getting a sense of earni
t t t t t t t t t t t t t t t t t t t
ng potential, types of positions available and the training necessary to acquire these positio
t t t t t t t t t t t t t
ns but what are the chances that the individual will enjoy working in this field.
t t t t t t t t t t t t t t
Question 9 : t t t
Nora needed to make a long- t t t t t
distance call from a pay phone and did not have the cash. She was able to make the call by usi t t t t t t t t t t t t t t t t t t t t
ng her: (Correct)
t t
Correct Answer : C: Cash card - correct answer- t t t t t t tt t
Reason : Consumers purchase cash cards for a specific amount of money. The amount pai t t t t t t t t t t t t t t
d is stored in the card's memory, and the card can be used to pay for goods or services specifi
t t t t t t t t t t t t t t t t t t t
c to a particular store or action until the amount stored, or "loaded" on the card, has been spen
t t t t t t t t t t t t t t t t t t
t. The type of cash card Nora used is called a phone card. Some retail chain stores sell cash c
t t t t t t t t t t t t t t t t t t t
ards which can be used to pay for their products. Cash cards are either disposable or re-
t t t t t t t t t t t t t t t t
loadable. Disposable cash cards cannot be replenished (loaded again). With re- t t t t t t t t t t
loadable cash cards, the consumer can return to the merchant and pay to have the balance o t t t t t t t t t t t t t t t t
n the card replenished.
t t t
Question 10 : A cash card generally: (Incorrect) t t t t t t t
Correct Answer : B: Is purchased with a specific amount of money that can be used to pay for
t t t t t t t t t t t t t t t t t t t
goods or services - correct answer- t t t tt t
Reason : Consumers purchase cash cards for a specific amount of money. The amount pai t t t t t t t t t t t t t t
d is stored in the card's memory, and the card can be used to pay for goods or services specifi
t t t t t t t t t t t t t t t t t t t
c to a particular store or action until the amount stored, or "loaded" on the card, has been spen
t t t t t t t t t t t t t t t t t t
t. Some retail chain stores sell cash cards which can be used to pay for their products. Cash c
t t t t t t t t t t t t t t t t t t
ards are either disposable or re-
t t t t t
loadable. Disposable cash cards cannot be replenished (loaded again). With re- t t t t t t t t t t
