PFIN Midterm Exam Questions and
Answers All Correct
If you made a down payment of $11,000 on a house worth $110,000, the lenders will
require _____ as a result of the size of the down payment. - Answer-mortgage
insurance
Fees charged by lenders as a condition of a mortgage loan that effectively raises the
interest rate are called - Answer-mortgage points.
The majority of each monthly payment at the beginning of the loan goes to pay the -
Answer-interest
The least expensive method for banks to interact with their customers is - Answer-
through the internet
Jane is a college student who withdraws cash at least five times a week to meet her
everyday expenses. Jane should have a checking account with good - Answer-
automated teller machine facilities.
Which of the following features is a disadvantage of asset management accounts? -
Answer-deposit insurance
Factors typically influencing the choice of where to maintain a checking account are -
Answer-convenience, services, and cost.
As home prices have fallen in recent years, the rent ratio - Answer-and rent affordability
have decreased.
A safe-deposit box in a bank can be opened - Answer-only when the keys of both the
banker and the account holder are used.
Funds in commercial banks are protected by the - Answer-Federal Deposit Insurance
Corporation
When a savings bank is a mutual association, it is owned by the - Answer-depositors
Generally, as income rises, the average propensity to consume - Answer-decreases
Answers All Correct
If you made a down payment of $11,000 on a house worth $110,000, the lenders will
require _____ as a result of the size of the down payment. - Answer-mortgage
insurance
Fees charged by lenders as a condition of a mortgage loan that effectively raises the
interest rate are called - Answer-mortgage points.
The majority of each monthly payment at the beginning of the loan goes to pay the -
Answer-interest
The least expensive method for banks to interact with their customers is - Answer-
through the internet
Jane is a college student who withdraws cash at least five times a week to meet her
everyday expenses. Jane should have a checking account with good - Answer-
automated teller machine facilities.
Which of the following features is a disadvantage of asset management accounts? -
Answer-deposit insurance
Factors typically influencing the choice of where to maintain a checking account are -
Answer-convenience, services, and cost.
As home prices have fallen in recent years, the rent ratio - Answer-and rent affordability
have decreased.
A safe-deposit box in a bank can be opened - Answer-only when the keys of both the
banker and the account holder are used.
Funds in commercial banks are protected by the - Answer-Federal Deposit Insurance
Corporation
When a savings bank is a mutual association, it is owned by the - Answer-depositors
Generally, as income rises, the average propensity to consume - Answer-decreases
