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Multiple Choice Quiz
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1

A credit card is a plastic access card used in computerized banking transactions.
A)True.
B)False.
2

Pawnshops make loans based on the value of tangible possessions such as jewelry or other valuable items.
A)True.
B)False.
3

Your selection of a savings plan is not influenced by the rate or return on the plan.
A)True.
B)False.
4

The average cost of cashing a check at a check-cashing outlet is 2-3% of the value of the check.
A)True.
B)False.
5

A CD that may have a higher interest rate at various intervals is:
A)A rising or bump-up CD
B)A stock-indexed CD
C)A callable CD
D)A global CD
E)None of the above.
6

Which of the following is a drawback of a money market mutual fund?
A)Low rate of return
B)Penalty for early withdrawal
C)High minimum balance
D)Not insured
E)All of the above are drawbacks of money market mutual funds
7

Which of the following is inflation?
A)It is the annual yield you earn on a savings plan
B)It is the fact that you may earn interest on interest
C)It is the fact that your purchasing power may change as price levels change and must be considered when comparing savings plans.
D)It is the fact that you can withdraw your money on short notice without loss of principal
E)None of the above is inflation
8

Something similar to a cashier's check that can be purchased at a financial institution, a post office or a store is:
A)A certified check
B)A cashier's check
C)A money order
D)A traveler's check
E)None of the above
9

A(n) ____________ is a computer terminal where you can withdraw cash, make deposits, check you balance conduct other financial services.
A)Direct Deposit
B)Automatic Payments
C)Automated Teller Machine
D)Smart Card
E)None of the above
10

A(n) ____________ is a savings account that requires the money be left in for a stated period of time which will earn a stated rate of interest.
A)Regular savings account
B)Certificate of Deposit
C)Club account
D)Money market account
E)None of the above
F)This is an account that requires a minimum balance and which pays a more competitive interest rate. A limited number of checks can be written on this account.
G)A certificate of deposit usually has a substantial penalty for early withdrawal of the money.





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