FCS-340 Exam 2 Questions
and answers
If you lose your debit card and notify your financial institution within two
days, how much are you potentially liable for? - answer Anywhere
between $50 to $500
When you select a financial services provider, what are major factors to
consider? - answer Convenience; Service; Interest rates (borrowing);
Fees
What type of financial services does a credit card company provide -
answer Short-term lending
What type of financial services does a investment company provide -
answer Mutual funds, money market funds
What type of financial services does a life insurance company provide -
answer Life Insurance, savings and investments
What type of financial services does a mortgage company provide -
answer Loan for house
What type of financial services does a payday loan company provide -
answer Cash advancements with high interest rates
Which of the financial services listed in Question 3 will likely provide the
most expensive access to funds? - answer Payday Loans
What type of institution is most likely to provide a full range of financial
services, including checking, savings, and lending? - answer Commercial
Bank
, Ed needed some cash quickly, so he received a short-term loan based on
the value of an old ring. Where did he go? - answer Pawnshop
What would be considered a drawback of a savings account? - answer
Low returns; Withdrawal Limitations; Missed Opportunities
A certificate of deposit that has different interest levels based on the
stock market performance is called a - answer Stock Indexed CD
A savings plan requiring that a certain amount be left on deposit for a
stated time period to earn a specified interest rate - answer A certificate
of deposit
usually earns interest only if the account stays above the required amount
- answer An interest-earning checking account
A savings account offered by banks, savings and loan associations, and
credit unions that requires a minimum balance and has earnings based on
market interest rate. - answer A money market account
A mutual fund that invests in short-term debt securities, such as
commercial paper, banker's acceptance, repurchase agreements, T-bills,
and negotiable CDs. - answer A money market fund
Previously called a passbook, or statement accounts, usually involves a
low or minimum balance and allows you to withdraw money as needed. -
answer A regular savings account
Earnings on savings can be measured by the __________ - answer Rate of
Return
Earning interest on interest is called ___________________ - answer
Compounding Interest
and answers
If you lose your debit card and notify your financial institution within two
days, how much are you potentially liable for? - answer Anywhere
between $50 to $500
When you select a financial services provider, what are major factors to
consider? - answer Convenience; Service; Interest rates (borrowing);
Fees
What type of financial services does a credit card company provide -
answer Short-term lending
What type of financial services does a investment company provide -
answer Mutual funds, money market funds
What type of financial services does a life insurance company provide -
answer Life Insurance, savings and investments
What type of financial services does a mortgage company provide -
answer Loan for house
What type of financial services does a payday loan company provide -
answer Cash advancements with high interest rates
Which of the financial services listed in Question 3 will likely provide the
most expensive access to funds? - answer Payday Loans
What type of institution is most likely to provide a full range of financial
services, including checking, savings, and lending? - answer Commercial
Bank
, Ed needed some cash quickly, so he received a short-term loan based on
the value of an old ring. Where did he go? - answer Pawnshop
What would be considered a drawback of a savings account? - answer
Low returns; Withdrawal Limitations; Missed Opportunities
A certificate of deposit that has different interest levels based on the
stock market performance is called a - answer Stock Indexed CD
A savings plan requiring that a certain amount be left on deposit for a
stated time period to earn a specified interest rate - answer A certificate
of deposit
usually earns interest only if the account stays above the required amount
- answer An interest-earning checking account
A savings account offered by banks, savings and loan associations, and
credit unions that requires a minimum balance and has earnings based on
market interest rate. - answer A money market account
A mutual fund that invests in short-term debt securities, such as
commercial paper, banker's acceptance, repurchase agreements, T-bills,
and negotiable CDs. - answer A money market fund
Previously called a passbook, or statement accounts, usually involves a
low or minimum balance and allows you to withdraw money as needed. -
answer A regular savings account
Earnings on savings can be measured by the __________ - answer Rate of
Return
Earning interest on interest is called ___________________ - answer
Compounding Interest
