Scheduled maintenance: Wednesday, February 8 from 10PM to 11PM PST
Upgrade to remove ads
Only $35.99/year

Econ wise test part 1

Terms in this set (50)

The National Credit Union Administration (NCUA) insures accounts in
Credit unions
Most Consumer Credit Counseling Services (CCCS)
Charge a fee for setting up and administering a debt repayment plan
A teenage boy has opened a checking account. He is surprised to find that though he is getting a written bank statement each month he is not getting his cancelled checks returned. The teenager should be aware that the reason cancelled checks are NOT returned is to
save the bank money associated with returning copies of these checks.
The primary sources of income for most people between the ages of 20 and 35 who are not living on a pension or social security are
Salaries, wages, and tips
Which financial product typically pays the highest rate of interest
Certificate of deposit
Maxine has an auto loan that she has to pay. She will make monthly payments over five years. She has a
Installment loan
Which financial product can you buy for $25, is safe, and will be worth $50 at a future date?
Series EE savings bond
Richard's auto insurance policy expired on 5/15/2002. Richard was upset with his insurance agent and decided to change insurance companies. At 10:00 a.m. on 5/16/2002, as he drove to a different agent to buy a new policy, he had an accident. Who is liable for damage to his car and his personal injuries?
Richard
Which of the following lenders charge the highest interest rate?
Pawn shop
Travelers checks, often used for vacations:
Function as cash and are easily replaced if lost
A type of electronic funds transfer (EFT) is:
An ATM transaction
Consumer finance companies, which are often advertised on TV, are also known as:
Small loan companies
Consumer Credit Counseling Services (CCCS) offer:
Debt repayment plans
Jennie owns Disney shares and cannot attend the annual stockholder meeting. She can:
Vote by mail or online through a proxy
Predatory lending practices do not include which of the following:
A loan that you can afford with an interest rate that is the same as the interest rate being charged by at least three other financial institutions
When Jessie needs health care, she must first go to her primary care physician who coordinates her care and decides whether Jessie should see a specialist. Jessie pays $10 as the co-pay when she sees her primary care doctor. Jessie has which type of health insurance?
Managed care health plan
Shares of stock are also known as:
Equities
A credit card finance charge is:
The dollar amount it cost to use credit
If you have a managed health care plan, it means that you:
Usually must first meet with your primary health care physician
Who uses consumer credit reports in making decisions?
Lenders
Erika and Mark received an inheritance of $100,000. They plan to invest their inheritance money to buy a house in six years. Which of the following carries the greatest risk?
Common stocks
What is the chief reason corporations issue stock?
To raise money for the corporation
Ellen, Barbara, and Paul all charged $1,000 on their credit cards last year. Who paid the most in finance charges?
Paul, who only pays the minimum amount each month
Which documents should be stored in a safe-deposit box?
Mortgage loan papers.
Sara has invested in corporate bonds which are:
Loans to the issuer of the bond
Which of the following is your right as a shareholder of common stock?
The right to receive dividends if paid
Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:
A savings plan
Why does a corporation issue bonds?
To raise money for expansion or other company operations
Susan gives Marie her ABC Credit Union debit card and personal identification number (PIN) so Marie could get $25 from Susan's bank account. Marie withdrew $100 instead of the agreed to $25. How can Susan get the $75 back?
No bank or government agency is obligated to reimburse Susan because she authorized Marie to use her ATM card and PINThis answer is correct.
Matt's wallet, with all his credit cards, was stolen. He needs to:
Selected:
Notify each credit card company immediately
When John bought a Microsoft bond, he was:
Lending money to Microsoft
A high school student has begun to investigate the field of finance as a career choice. In deciding about the field, the student should focus on which question first?
Will I find a balance between financial rewards and personal satisfaction from work?
What is a credit score?
A number used to determine how much credit to extend to a person.
The activity of the New York Stock Exchange most closely resembles:
An auction house
Ben's truck is crushed by a hit-and-run driver. Scott is hit by an uninsured driver. How will they receive payments?
Uninsured or no-fault motorist coverage
Jami lost her debit card. She did not report it missing for 3 months. If an unauthorized person used her debit card, her maximum liability is:
Unlimited liability
Why is term life insurance usually the least expensive type of life insurance?
The policy only pays a death benefit
New coins and currency make their way into the general economy, consumers and businesses, through the distribution system of the:
Federal Reserve System
You have a checking account balance of $100 and you deposit a personal $200 check from your brother in your checking account. When will you be able to withdraw $150 in cash?
3 to 7 days later, depending on your bank's check clearance policy
Which of the following provides an increase in assets or wealth?
Having capital gains
Frankie's savings account has earned a lot of interest. He wants to know if he must pay taxes on the interest earned. What would the IRS tell him?
Savings account interest is taxable
Mr. Akon's wife died. The money he received as the beneficiary on her life insurance is called the:
Death benefit or face value
David bought stock for $4,000 and one year later he sold it for $1,000. The sale resulted in a:
Price earning
Financial services and products generally offered by banks and credit unions include:
Savings and loans
A cash card generally:
Is purchased with a specific amount of money that can be used to pay for goods or services
Identify the background color of a U.S. $5.00 bill.
Green
When a borrower fails to repay a loan and there is a co-signer on the loan, the most likely result will be
The co-signer will be held responsible for the repayment of the entire loan plus fees or penalties.
How can you avoid becoming a victim of identity theft?
Avoid giving your Social Security number on a phone call you did not initiate
The price of the Candy Corporation stock will generally increase when there is:
Positive news about corporate earnings
A blank endorsement on a check:
Creates a check that can be cashed by anyone
Other sets by this creator