2. 4.02 Review PF

3. Blake invested $200 in the federal government. What type of investment is this? A. Bond B. Certificate of deposit C. Mutual fund D. Stock

4. How do commercial banks and savings and loan associations compare? A. Banks originally specialized in funding for home buyers; savings and loans did not A. Banks originally specialized in funding for home buyers; savings and loans did not B. Both are insured by SAIF C. Both have share certificate accounts D. Both may be chartered by state or federal government D. Both may be chartered by state or federal government

5. Junior was advised to store this deed of trust in a secure place. Which is the BEST location to store important items? A. Filing cabinet B. Locked box C. Office desk drawer D. Safe deposit box

6. Jerry is concerned about the safety of his money in a local commercial bank. What insurance program protects his money? A. FDIC B. NCUA C. No insurance offered to commercial banks D. SAIF

7. Penny wants to cash a check from her friend. What should she do? A. Balance her checkbook B. Endorse the back of the check C. Open a checking account D. Reconcile her bank statement

8. Greg wants to be sure to protect his PIN number from being stolen. What should he do? A. Attach his PIN number to his debit card B. Be observant when using an ATM C. Note on his debit card where his PIN number is kept C. Note on his debit card where his PIN number is kept D. Tell a friend his PIN so he can help him remember it D. Tell a friend his PIN so he can help him remember it

9. Sherry just received her bank statement in the mail. What should she do? A. Balance her checkbook B. Endorse by signing on the back C. Open a checking account D. Write a personal check

10. An advantage of E-banking over traditional banking is that E-banking: A. allows for world wide access. B. is less expensive. C. leaves an automatic paper record of every transaction. C. leaves an automatic paper record of every transaction. D. prevents fraud from occuring.

11. What do commercial banks and credit unions have in common? A. Both are available to everyone B. Both are for profit C. Both are insured by NCUA D. Both offer mortages

12. What do commercial banks and brokerage firms have in common? A. Both are insured by SAIF B. Both are nonprofit C. Both offer help with investments D. Both offer share accounts

13. Sharon set up an account at a credit union because she could earn a higher rate of interest on money deposited there than at the local bank. What type of account is this? A. Brokerage account B. Checking account C. Retirement plan account D. Share account

14. Ted has a checking account at a local bank, but needs a guaranteed check to purchase an automobile for sale in his neighborhood. Which is the BEST method of payment? A. Cashier's check B. Money order C. Personal check D. Share draft account

15. George loaded $200 on a plastic card for his daughter to purchase clothes at the mall. Which E-banking service is this? A. Automated Teller Machine (ATM) B. Direct deposit C. Point-of-sale transfer D. Smart card

16. Darryl needs help with managing his inheritance. What type of financial service would meet this need? A. Financial counseling B. Mortgage C. Safe-deposit box D. Smart card

17. Marti opened a savings account at a credit union. What type of account is this? A. Brokerage B. Checking C. Retirement D. Share

18. Justin doesn't have a bank account and needs to mail a payment to a person out of state. Which is the BEST method of payment? A. Money order B. Personal check C. Share draft account D. Traveler's check

19. Dwayne used his debit card to pay for his groceries at the self-checkout station. Which E-banking service is this? A. Automated Teller Machine (ATM) B. Direct deposit C. Point-of-sale transfer D. Smart card

20. Jacob needs a personal check guaranteed by the bank for the purchase of a used car. Which is the BEST method of payment? A. Certified check B. Money order C. Personal check D. Share draft account

21. Ralph wants to protect his debit card from fraud. What should he do? A. Allow his friends his card instead of cash when needed A. Allow his friends his card instead of cash when needed B. Leave the back of the card blank C. Write his PIN on the back of his card D. Write "See ID" on the back of the card

22. Curt has his paycheck sent directly to his checking account each pay period. Which E- banking service is this? A. Automated Teller Machine (ATM) B. Direct deposit C. Point-of-sale transfer D. Smart card

23. Wanda wrote a check with an incorrect amount. What should she do? A. Cross out the incorrect amount and write the correct amount above it A. Cross out the incorrect amount and write the correct amount above it B. Remember next time to write in pencil so corrections can be made B. Remember next time to write in pencil so corrections can be made C. Tear up the check and write "VOID" beside that check number in the register C. Tear up the check and write "VOID" beside that check number in the register D. Use white-out to cover the incorrect amount and then write the correct amount D. Use white-out to cover the incorrect amount and then write the correct amount

24. Jennifer does not have a checking account and needs to send $75 to her sister in another town. What should she do? A. Give her friend $75 and ask him to mail a personal check to her sister A. Give her friend $75 and ask him to mail a personal check to her sister B. Go to the bank and obtain a certified check C. Mail the cash in a thick, secure envelope D. Obtain a money order for $75 and mail to her sister D. Obtain a money order for $75 and mail to her sister

25. What do savings and loans associations and credit unions have in common? A. Both are insured by SAIF B. Both are required to pay federal income taxes B. Both are required to pay federal income taxes C. Both offer checking and savings accounts D. Both require membership to a specific employer D. Both require membership to a specific employer

26. An advantage of traditional banking over E- banking is that: A. a personal check can only be used by the person named in the account. A. a personal check can only be used by the person named in the account. B. a personal check can be stolen and used by someone else. B. a personal check can be stolen and used by someone else. C. a point-of-sale transaction is a risky way to pay for purchases. C. a point-of-sale transaction is a risky way to pay for purchases. D. an ATM is a safe place to withdraw cash from an account. D. an ATM is a safe place to withdraw cash from an account.

27. Jamie slid her bank provided card and entered a PIN to withdrawal $20 cash from her checking account. Which E-banking service is this? A. Automated Teller Machine (ATM) B. Direct deposit C. Point-of-sale transfer D. Smart card

28. Warren does not have a personal checking account and does not like to carry cash when he shops. What should he do? A. Obtain an installment loan B. Stop at the ATM and get cash C. Use a credit card when he shops D. Use a debit card when he shops

29. Roberto purchased shares of ownership in a local commercial bank. What type of investment is this? A. Bond B. Certificate of Deposit C. Mutual Fund D. Stock