test #41-60
41. Many companies offer _____, which is an automatic deposit of net pay to an employee's designated bank account.
A)accounts receivable
B)amortization
C)gross profit on sales
D)direct deposit
42. A debit card allows you to _____.
A)pay for purchases directly from your checking or savings account
B)protect your checks from thieves
C)borrow money for a short term
D)spend more money than you have in your account
43. A _____ is a financial institution that traditionally specialized in savings accounts and mortgage loans but now offers many of the same services offered by commercial banks.
A)mutual savings bank
B)savings and loan association
C)credit union
D)life insurance company
44. What is money placed in a checking account called?
A)investment deposit
B)checking deposit
C)special deposit
D)demand deposit
45. The calculation for the rate of return is _____.
A)original deposit × total interest earned
B)total deposit ? original interest
C)total interest earned ÷ original deposit
D)total interest + original deposit
46. According to the Truth in Savings law, financial institutions have to inform you of all of the following EXCEPT _____.
A)number of deposits held in the bank
B)interest rate
C)annual percentage yield
D)terms and conditions of the savings plan
47. Overdraft protection is _____.
A)the use of a debit card to purchase an item or service at a retail store
B)an automatic loan made to an account if the balance will not cover checks written
C)the amount of interest that a financial institution would pay on a $100 deposit
D)the percentage of increase in the value of savings from earned interest
48. A _____ is a request that a bank or other financial institution not cash a particular check.
A)point-of-sale transaction
B)certificate of deposit
C)stop-payment order
D)rate of return
49. Your bank statement will include all of the following EXCEPT _____.
A)deposits
B)checks you have written
C)debit card charges
D)the number of years you have had the account
50. A(n) _____ is a report that accounts for the differences between a bank statement and a checkbook balance.
A)certificate of deposit
B)endorsement
C)bank reconciliation
D)money market account
51. _____ is an arrangement to receive cash, goods, or services now and pay for them in the future.
A)credit
B)creditor
C)collateral
D)net income
52. The following are all advantages of using credit EXCEPT _____.
A)It lets you enjoy goods and services now, and pay for them later.
B)You might be tempted to buy more than you can afford.
C)It allows you to combine several purchases and make one monthly payment.
D)It gives you a record of your expenses.
53. A _____ is the maximum amount of money a creditor will allow a credit user to borrow.
A)grace period
B)credit rating
C)bankruptcy
D)line of credit
54. A finance charge is _____.
A)a time period during which no finances charges will be added to your account
B)the total dollar amount you pay to use credit
C)the amount of money that a person borrows
D)a form of security to help guarantee that a creditor will be repaid
55. Which of the following calculations will help you figure out your debt payments-to-income ratio?
A)monthly net income × monthly debt payments
B)monthly debt payments + monthly net income
C)monthly debt payments ÷ monthly net income
D)monthly net income + total credit payments
56. The _____ is the cost of credit on a yearly basis, expressed as a percentage.
A)annual percentage rate
B)interest rate
C)credit rate
D)principal
57.Many lenders believe that you have a higher stake in repaying a loan if you make a _____.
A)promise that you will pay off the loan
B)contribution to a charity
C)written statement
D)large down payment
58. The calculation for simple interest is _____ × interest rate × amount of time.
A)down payment
B)principal
C)month
D)credit rating
59. The five C's of credit include all the following EXCEPT _______.
A)cooperation
B)character
C)capacity
D)collateral
60. _______ are required to follow reasonable procedures to make sure that the information in their files is correct.
A)credit counseling services
B)cosigners
C)credit bureaus
D)thieves
A)accounts receivable
B)amortization
C)gross profit on sales
D)direct deposit
42. A debit card allows you to _____.
A)pay for purchases directly from your checking or savings account
B)protect your checks from thieves
C)borrow money for a short term
D)spend more money than you have in your account
43. A _____ is a financial institution that traditionally specialized in savings accounts and mortgage loans but now offers many of the same services offered by commercial banks.
A)mutual savings bank
B)savings and loan association
C)credit union
D)life insurance company
44. What is money placed in a checking account called?
A)investment deposit
B)checking deposit
C)special deposit
D)demand deposit
45. The calculation for the rate of return is _____.
A)original deposit × total interest earned
B)total deposit ? original interest
C)total interest earned ÷ original deposit
D)total interest + original deposit
46. According to the Truth in Savings law, financial institutions have to inform you of all of the following EXCEPT _____.
A)number of deposits held in the bank
B)interest rate
C)annual percentage yield
D)terms and conditions of the savings plan
47. Overdraft protection is _____.
A)the use of a debit card to purchase an item or service at a retail store
B)an automatic loan made to an account if the balance will not cover checks written
C)the amount of interest that a financial institution would pay on a $100 deposit
D)the percentage of increase in the value of savings from earned interest
48. A _____ is a request that a bank or other financial institution not cash a particular check.
A)point-of-sale transaction
B)certificate of deposit
C)stop-payment order
D)rate of return
49. Your bank statement will include all of the following EXCEPT _____.
A)deposits
B)checks you have written
C)debit card charges
D)the number of years you have had the account
50. A(n) _____ is a report that accounts for the differences between a bank statement and a checkbook balance.
A)certificate of deposit
B)endorsement
C)bank reconciliation
D)money market account
51. _____ is an arrangement to receive cash, goods, or services now and pay for them in the future.
A)credit
B)creditor
C)collateral
D)net income
52. The following are all advantages of using credit EXCEPT _____.
A)It lets you enjoy goods and services now, and pay for them later.
B)You might be tempted to buy more than you can afford.
C)It allows you to combine several purchases and make one monthly payment.
D)It gives you a record of your expenses.
53. A _____ is the maximum amount of money a creditor will allow a credit user to borrow.
A)grace period
B)credit rating
C)bankruptcy
D)line of credit
54. A finance charge is _____.
A)a time period during which no finances charges will be added to your account
B)the total dollar amount you pay to use credit
C)the amount of money that a person borrows
D)a form of security to help guarantee that a creditor will be repaid
55. Which of the following calculations will help you figure out your debt payments-to-income ratio?
A)monthly net income × monthly debt payments
B)monthly debt payments + monthly net income
C)monthly debt payments ÷ monthly net income
D)monthly net income + total credit payments
56. The _____ is the cost of credit on a yearly basis, expressed as a percentage.
A)annual percentage rate
B)interest rate
C)credit rate
D)principal
57.Many lenders believe that you have a higher stake in repaying a loan if you make a _____.
A)promise that you will pay off the loan
B)contribution to a charity
C)written statement
D)large down payment
58. The calculation for simple interest is _____ × interest rate × amount of time.
A)down payment
B)principal
C)month
D)credit rating
59. The five C's of credit include all the following EXCEPT _______.
A)cooperation
B)character
C)capacity
D)collateral
60. _______ are required to follow reasonable procedures to make sure that the information in their files is correct.
A)credit counseling services
B)cosigners
C)credit bureaus
D)thieves
answers
41. d
42. a 43. b 44. d 45. c 46. a 47. b 48. c 49. d 50. c |
51. a
52. b 53. d 54. b 55. c 56. a 57. d 58. b 59. a 60. c |