Topic Test Answers

How is email a useful component of online banking? I. Email alerts can be used to warn you before you overdraw your account. II. You can have your bank statements emailed to you, getting them to you faster. III. Only emailed bank statements can be used to support electronically-filed tax returns. a. I only b. II only c. I and II only d. I, II, and III Please select the best answer from the choices provided

Alissa would like to make a deposit into her savings account. She filled out a deposit ticket and handed it to the teller at her bank. The teller apologizes to Alissa and explains that she cannot accept the deposit ticket in its current form. Determine what, if anything, Alissa will have to change in order for her deposit ticket to be accepted. a. The sub total is calculated incorrectly b. Alissa forgot to sign the deposit ticket for less cash back c. The total is calculated i

Theresa has $708 in her account and wishes to throw a party. She plans to include the following:PurchaseCost ($)Decorations76.92Catering150.66Musicians242.15Refreshments123.36Venue260.47When Theresa makes the calculations, she finds that she cannot afford everything that she would like to have. What is the cheapest aspect of the party that she can eliminate to keep from overdrawing her account?a.Venueb.Musiciansc.Cateringd.Refreshments

Consider the following incomplete deposit slip: Description Amount ($) Cash, including coins 15 00 Check 1 62 44 Check 2 27 83 Check 3 45 75 Subtotal ?? ?? Less cash received ?? ?? Total 62 23 How much cash did the person who filled out this deposit slip receive? a. $381.23 b. $451.02 c. $88.79 d. $436.02 Please select the best answer from the choices provided

Steven is looking at banks for checking and savings accounts. Some offer home loans and others do not. Steven may need a home loan sometime in the next few years. But he wonders if he should really ask what kinds of loans the bank makes, because he is getting a checking account, not a home loan. Which statement below gives the best reason for Steven to consider loan availability in choosing a checking account? a. The bank offers $100 to customers who get a pre-approval for a home loan. b. The bank provides ATMs in all the suburbs where Steve is interested in living. c. Banks that provide home loans can usually charge lower fees on checking accounts. d. If he needs a home loan in the future, he will have a relationship with the bank. Please select the best answer from the choices provided

James is opening a checking account. The bank employees do not know him personally, and he has forgotten his identification. Can he open the account anyway, and use the ID later when he gets his debit card?a.Yes, it is usually OK if he has the money.b.Yes, but a note must be made on the application.c.No, because the photograph will be used on the debit card.d.No, because proper identification is required to open a checking account.

If the FDIC charges Bank D 6.1 cents per 100 dollars insured, how much must Bank D pay to insure $7.3 million in deposits? a. $4,453,000 b. $445,300 c. $4,453 d. $445.30 Please select the best answer from the choices provided

Nicole deposits $2,136 in a savings account paying 5.36% interest. To the nearest dollar, how much money does Nicole have in total after nine years?a.$213b.$1,030c.$1,272d.$3,166

Where does the FDIC’s reserve fund come from?a.The FDIC has access to federal tax revenue.b.If an insured bank fails, the FDIC keeps the money at that bank that is beyond the insured limit.c.A certain amount of money goes directly from the Treasury to the FDIC’s reserve fund.d.Insured banks pay a premium on the money insured.

In 2007, the FDIC’s insurance limit was $100,000 per person per bank. Approximately 59% of Mark’s deposits were insured by the FDIC. Which of the following is a possible setup for Mark’s deposits? a. A $50,000 savings account and $31,000 money market account at Bank G; a $71,000 money market account, $109,000 CD, and $39,000 checking account at Bank H; a $55,000 checking account, $84,000 savings account, and $38,000 CD at Bank I b. A $109,000 savings account, $124,000 checking account, and $36,000 money market account at Bank G; a $52,000 CD and $86,000 money market account at Bank H; a $79,000 checking account, $42,000 savings account, and $88,000 CD at Bank I c. A $107,000 money market account and $150,000 savings account at Bank G; a $22,000 checking account, $31,000 savings account, and $40,000 CD at Bank H; a $70,000 CD, $47,000 money market account, and $59,000 savings account at Bank I d. A $28,000 checking account and $30,000 CD at Bank G; a $77,000 savings account, $60,000 money market account, and $28,000 CD at Bank H; a $64,000 checking account, $92,000 CD, and $112,000 money market account at Bank I Please select the best answer from the choices provided

If the NCUA pays $1.36 billion to cover several failed credit unions, and doing so drains its reserve fund by 5.18%, approximately how much was in the fund to begin with?a.$70.1 billionb.$24.9 billionc.$27.7 billiond.$26.3 billion

June has a savings account with an annual simple interest rate of 2.6%. She hopes to gain $6,500 in interest over a period of eleven years. To accomplish this, June invested $17,801 in the account, but later realized that this was not enough money. To the nearest dollar, how much more money should June have initially invested to reach her goal?a.$6,335b.$3,715c.$1,409d.$4,926

I.

What is a “closing balance?”a.The amount of money you have at the end of the statement periodb.The amount of money you have when you close your accountc.The amount of money you owe at the end of the statement periodd.The amount of money waiting to be transferred out of your account