Topic Test Answers

Which of the following must be present for a check to be legitimate?I. Your signatureII. A memo or noteIII. The payee

If the FDIC charges Bank E 2.4 cents per 100 dollars insured, how much must Bank E pay to insure $4.8 million in deposits?

Money is invested into an account earning 4.25% interest compounded annually. If the accumulated value after 18 years will be $25,000, approximately how much money is presently in the account?

Nate has an account that pays 2.76% simple interest per year and wants to accumulate $3,090 in interest from it over the next 15 years. How much money should Nate invest in this account to meet this goal?

Henry is moving and needs to open a new checking account. He is trying to decide between three banks using the chart below:Bank XBank YBank ZNo monthly fees if balance stays above $500, otherwise $7 per monthNo monthly fees if check card is used less than 6 times per month$5 monthly feeNo minimum balance$25 minimum balanceNo minimum balanceOnline banking servicesOnline banking servicesOnline banking servicesNon-Bank X ATM fee - $2.00 per transactionNon-Bank Y ATM fee - $1.50 per transactionNon-Bank Z ATM fee - $2.00 per transactionHenry usually has about $300 in his account at any given time during the month. He limits his ATM visits to one per week and is interested in banking online options. Bank X and Bank Z have 5 ATMs within a 5 mile radius of Henry’s work and his new home. Which bank should he choose?

Anna has $274.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 194.62 35.45 Tuesday --- 11.20 Wednesday 145.86 24.75 Thursday 53.35 33.80 Friday 31.60 45.77 Saturday 12.90 61.63 Anna gets an overdraft fee if her balance at the end of the day is negative. On which day or days does Anna get charged an overdraft fee? I. Wednesday II. Thursday III. Friday

Rex has several hundred thousand dollars to save, and he wants to keep it as safe as possible. What would you recommend Rex do to keep his money safe?

If the FDIC has an insurance fund of $67.8 billion and must use 7.6% of it to cover several failed banks, approximately how much money is left in the fund?

Nick is making a deposit with a check and wants cash back. His deposit slip has his name, his account number, the date, the amount of the check, his signature, the total deposit amount, and what else?

What is the most suitable option for Norm to invest his $15,000, considering his daughter's upcoming college plans and the associated interest rates?

Trevor has an investment worth $6,774.50. He made his only deposit in it 22 years ago. Given that the investment yields 2.7% simple interest annually, how big was the initial deposit?

Bill has $270.61 in his account before making any transactions. Over the course of a week, Bill makes the following transactions:TransactionDebit ($)Credit ($)Paycheck---535.67Electric bill112.53---Groceries90.79---Savings bond---50.00Car payment225.65---At the end of the week, how much money is in Bill’s account?

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

Henry is moving and needs to open a new checking account. He is trying to decide between three banks using the chart below:Bank XBank YBank ZNo monthly fees if balance stays above $500, otherwise $7 per monthNo monthly fees if check card is used less than 6 times per month$5 monthly feeNo minimum balance$25 minimum balanceNo minimum balanceOnline banking servicesOnline banking servicesOnline banking servicesNon-Bank X ATM fee - $2.00 per transactionNon-Bank Y ATM fee - $1.50 per transactionNon-Bank Z ATM fee - $2.00 per transactionHenry usually has about $300 in his account at any given time during the month. He limits his ATM visits to one per week and is interested in banking online options. Bank X and Bank Z have 5 ATMs within a 5 mile radius of Henry’s work and his new home. Which bank should he choose?

Peter and Marcia, both age 34, can each pay $650 a year each on life insurance for themselves. About how much is the face value of the largest combination of policies they can buy?