Topic Test Answers

Vítor knows he must prepare and possibly prevent overdraft funds fees since they are charged automatically. Which statement below would be the least effective element of a plan Vitor could use to accurately estimate (or minimize) overdraft fees on the account?

Bill wants to open a checking account to pay bills from and a savings account to cover overdrafts and other emergencies. He wants online services, and a debit card. He analyzes the following statements of fees from State Bank and Common Bank: Based upon past experience, Bill expects to accidentally overdraft the account 2 times per year, unfortunately, due to unexpected charges and miscommunications. He expects no 2nd copies of statements, and to use network ATMs 4 times per month with State Bank (due to less in-network ATMs being available), or 2 times per month with Common Bank. He has $2500 to deposit to an emergency savings account for overdraft protection, and thinks that the balance will be enough to cover most all overdrafts in the future if automatic transfers are made when needed. Based on the tables of fees, which bank is expected to cost the least amount in fees per year?

Sally just purchased a beautiful home on a riverbank for what she thought was a very good deal. She later learned that her house was very susceptible to flood damage during the rainy season. Which of the following statements best describes the effect the location of Sally’s new home will have on her homeowners insurance premium?

Macky wants to open a checking account. He is examining different banks and banking accounts. Then he will choose a bank account for his needs. Which of the following statements should not be one of Macky’s reasons for choosing a bank?

Which of the following most accurately describes when a debit card transaction takes effect?

Mary and Lewis each open a savings account at the same time. Mary invests $3,700 in an account yielding 3.2% simple interest, and Lewis invests $3,000 in an account yielding 5.9% simple interest. After fifteen years, who has the greater total amount of money, and how much greater is it?

Susan is paying $0.30 per $100 on her $483,000 home in homeowners insurance annually. If her annual homeowners insurance premium is divided into twelve equal monthly installments to be included on each of her monthly mortgage payments of $2128.00, what is her total monthly payment?

Jordy was living in a third story apartment in his complex. Up there he was paying an annual renters insurance premium of $325.00. When an opportunity to move to the ground floor came up, he jumped on it, but found out that, since burglaries are more common on ground floor apartments, his renters insurance premium would go up by 18%. What is his new annual renter’s insurance premium.

Read the excerpt from chapter 7 of The Strange Case of Dr. Jekyll and Mr. Hyde.The middle one of the three windows was half-way open; and sitting close beside it, taking the air with an infinite sadness of mien, like some disconsolate prisoner, Utterson saw Dr. Jekyll."What! Jekyll!” he cried. "I trust you are better.”"I am very low, Utterson,” replied the doctor drearily, "very low. It will not last long, thank God.”"You stay too much indoors,” said the lawyer. "You should be out, whipping up the circulation like Mr. Enfield and me. (This is my cousin—Mr. Enfield—Dr. Jekyll.) Come now; get your hat and take a quick turn with us.”"You are very good,” sighed the other. "I should like to very much; but no, no, no, it is quite impossible; I dare not.”Read the excerpt from chapter 10 of The Strange Case of Dr. Jekyll and Mr. Hyde.Under the strain of this continually impending doom and by the sleeplessness to which I now condemned myself, ay, even beyond what I had thought possible to man, I became, in my own person, a creature eaten up and emptied by fever, languidly weak both in body and mind, and solely occupied by one thought: the horror of my other self.

Read the excerpt from The Strange Case of Dr. Jekyll and Mr. Hyde.About a week has passed, and I am now finishing this statement under the influence of the last of the old powders. This, then, is the last time, short of a miracle, that Henry Jekyll can think his own thoughts or see his own face (now how sadly altered!) in the glass.

Which of the following are advantages of certificates of deposit (CDs) over savings accounts?I. CDs are more readily accessible than savings accounts.II. CDs offer greater interest rates than savings accounts.III. CDs have greater FDIC backing than savings accounts.

Mrs. Jones has received her bank statement and is ready to reconcile it with her checkbook register. Fill out the reconciliation worksheet for Mrs. Jones using the data from her bank statement and checkbook register. Assume all transactions on previous pages have already cleared. Great Bank of Home and WorkKeepItSimple™ Statement for February 2010Beginning balance (01/05/2010): $2340.00Ending balance (02/04/2010): $1864.16Total of credits: $0.00Total of debits: $475.84Date cleared - 01/05/2010Description - Debit card purchase from XYZ Supermarket and Deli LimitedAmount - 145.44Date cleared - 02/04/2010Description - Check 1015, Bis Insurance of North AmericaAmount - $320.40Date cleared - 02/04/2010Description - Monthly service feeAmount - $10.00Reconciliation WorksheetAmount1. Enter the statement closing balance.$2. Enter the sum of any outstanding deposits or credits.$3. Add lines 1 and 2.$4. Enter the sum of any outstanding checks or debits.$5. Subtract line 4 from line 3.$6. Enter your checkbook balance.$Note: Lines 5 and 6 should be equal at the end of the reconciliation. Mrs. Jones’s checkbook register:DateNumPayeePaymentClrDepositBalance1/1/2010 Balance forward 2,340.002,340.001/5/2010DebitXYZ Supermarket145.44 2194.562/1/20101014Rent600.00 1594.562/1/20101015Bis Insurance Company320.40 1274.16Consider what must be done, if anything, in order to finish the reconciliation process.

Paul has decided to set up his own recording studio. He needs to purchase four speakers at $435 apiece and two mixers at $772 apiece. He also needs to soundproof a room, which will cost him $838. If Paul has $4,500 in his savings account, how close can he come to setting up his studio?

Read the excerpt from The Strange Case of Dr. Jekyll and Mr. Hyde.To cast in my lot with Jekyll, was to die to those appetites which I had long secretly indulged and had of late begun to pamper. To cast it in with Hyde, was to die to a thousand interests and aspirations, and to become, at a blow and forever, despised and friendless.

Leroux Health Insurance is considering changing the options in one of their health care plans (Plan A) based on customer feedback that prescriptions and regular visits to the doctor are too expensive for the insured individual. How can Leroux reduce the costs of regular health care without driving up the price of their health care plan?Leroux Health InsurancePlan A Cost: Monthly Premium: $248.00 Annual Deductible: $5,500.00 Co-pays: Brand-name Prescriptions $35.00 Generic Prescriptions $15.00 Visits: Primary Care Physician: $40.00 Specialist: $60.00 Urgent Care: $125.00 Emergency Room: $325.00

Barry wants to open a checking account. He wants online services, and a debit card. He is looking at the following tables of fees from his employer's credit union, EECU, and a local bank, E-town Bank: Based upon past experience, Barry expects no overdrafts. He expects no 2nd copies of statements. Barry estimates that he will use network ATMs about 5 times a month with either bank. Barry decides in the end to choose EECU. Assuming that both banks provide the necessary services equally well, and based upon the tables of fees given above, how much can Barry reasonably expect to save annually by choosing EECU in this case over E-town bank?

What are you primarily doing when you reconcile your checking account?

Renters insurance is different than homeowners insurance in that _____.