Topic Test Answers

Gina invests $1,677 in an account paying 8.61% simple interest annually. How much interest has Gina gained after six years?

Which of the following government agencies does not regulate banking or financial markets?

What does PIN stand for?

Porsha calculates the amount of money she will have at the end of 6 years on a $5,000 investment earning 3.75% interest compounded quarterly. She writes the following expression: Which of the following statements about Porsha's expression is true?

An investment of $2,000 is earning interest at the rate of 6.2% compounded quarterly over 5 years. Approximately how much interest is earned on the investment?

Emma is ready to open a new checking account and is trying to decide between three banks using the chart below:Bank RBank SBank TNo monthly fees if balance stays above $300, otherwise $7 per monthNo monthly fees if check card is used more than 6 times per month, otherwise $10 monthly fee$5 monthly feeNo minimum balance$25 minimum balanceNo minimum balanceOnline banking servicesOnline banking servicesNo online banking optionsNon-Bank R ATM fee - $2.00 per transactionNon-Bank S ATM fee - $1.50 per transactionNon-Bank T ATM fee - $2.00 per transactionEmma usually has about $1000 in her account at any given time during the month. She usually visits the ATM twice a week and is interested in banking online options. Bank R has 10 ATMs within a 5 mile radius of Emma’s home. Bank S has 1 ATM 10 miles from Emma’s work. Which bank should she choose?

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?

Auto insurance options offered by AA Auto Insurance are outlined in the table below. What monthly payment would you expect for an insurance policy through AA Auto Insurance with the following options?Bodily Injury: $25/50,000Property Damage: $25,000Collision: $250 deductibleComprehensive: $100 deductibleAA Auto Insurance Type of Insurance CoverageCoverage LimitsAnnual PremiumsBodily Injury $25/$50,000$22.50 $50/100,000$31.75 $100/300,000$40.25 Property Damage$25,000 $120.50 $50,000 $144.75 $100,000 $193.00 Collision$100 deductible$520.00 $250 deductible$415.25 $500 deductible$275.75 Comprehensive$50 deductible$110.25 $100 deductible$100.00

Which statement below gives the best reason for considering personal needs, values, and circumstances in selecting a bank account?

Tony invested $5,500 in a four-year CD that paid 4.8% interest, but later needed to withdraw $475 early. If the CD’s penalty for early withdrawal was three months’ worth of interest on the amount withdrawn, how much of a penalty did Tony pay?

In what way is a debit card similar to a check?

George tallies up the transactions in his check register and comes up with a total balance of $221.57, but his bank statement says that his balance is $203.73. Which of the following are still outstanding?I. A $20.25 check to the floristII. A $14.29 check to the dry cleanersIII. A $38.09 check depositIV. A $19.05 money order deposit

Joshua is 25 years old and has a high risk job making $72,000 a year. The insurance company charges him an extra 20% on top of his premium rate because of his job. If Joshua wants a policy that will replace five years of his salary, what is the annual premium for the cheapest policy?

Consider the following incomplete deposit ticket: What was the value of the third check Tony deposited?