Unit 4 Test - Managing Financial Accounts

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Personal Financial Literacy Unit 4 Exam

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Enter your first and last name. *

1. The person to whom the check is written is referred to as the _____. *

1 point

payee

payer

endorsee

account holder

2. Juan and Deborah have recently married and want to open a checking account at the bank near their home. They have regular monthly bills and deposits, so they have numerous transactions and do not keep a large balance. What type of checking account would be best for Juan and Deborah?
*

1 point

share account

special account

regular checking account

interest-bearing checking account

3. Hunter has several thousand dollars and doesn’t want to open both a savings and checking account. What type of checking account would be best for Hunter?
*

1 point

share account

special account

regular checking account

interest-bearing checking account

4. LaDawn works at a company and belongs to a credit union. What type of checking account would LaDawn have?
*

1 point

share account

special account

regular checking account

interest-bearing checking account

5. The most common type of endorsement on a check is a _____. *

1 point

blank endorsement

special endorsement

primary endorsement

restrictive endorsement

6. Wesley wants to give his daughter the amount of a check given to him. What type of endorsement can Wesley use that will transfer the right to cash the check to his daughter? *

1 point

blank endorsement

special endorsement

primary endorsement

restrictive endorsement

7. Alberto endorses a check with “For deposit only” before he puts it in the mail to his bank. What type of endorsement did Alberto use? *

1 point

blank endorsement

special endorsement

primary endorsement

restrictive endorsement

8. Jake has recently opened a checking account but does not bother to record information in the check register. Jake loves buying items and isn’t concerned about whether the money is in his account. He assumes he can deal with being overdrawn when it happens. What could possibly happen to Jake if he keeps writing checks that he can’t cover?
*

1 point

Nothing will happen to Jake

He may have to negotiate lower prices on items

He could be charged additional interest on items

He could receive fines or jail time for writing bad checks

9. What term refers to “balancing a checkbook” and is the best way to keep a correct balance and catch mistakes?
*

1 point

budgeting

resolution

reconciliation

amortization

10. Antonio has compared his check register to his monthly statement for the same period of time. He has carefully subtracted necessary fees and double-checked his arithmetic and the two amounts don’t reconcile. What should Antonio do?
*

1 point

nothing

contact his financial institution

contact stores and individuals he wrote checks to

put additional money into his account so they reconcile

11. Financial institutions must investigate reported errors within _____.
*

1 point

two days of notification

seven days of notification.

ten days of notification.

thirty days of notification.

12. In order to help protect financial accounts, financial institutions must provide automatic log-off when inactive for ______.

1 point

5 minutes

10 minutes

30 minutes

one hour

13. Gabe is trying to think of a password for his online banking. What advice should Gabe take?
*

1 point

use the same password as used for other sites

use favorite names or birthdays for the password

keep the password as simple as possible to remember

make passwords difficult by including numbers and letters

14. Ashley has just opened a checking account and doesn’t want to ever become overdrawn. What advice should Ashley follow to avoid being overdrawn?
*

1 point

limit using the checking account to paying bills

not worry about it since the debit card would be declined first

add money to the account each time you write a check or make a withdrawal

make it a habit to write in the check register before writing checks or making withdrawals

15. If the top left of a check includes two names with an “or” between them, it indicates that all checks or withdrawals require the signatures of all account holders.
*

1 point

True

False

16. A joint checking account is an account where two or more people can write checks.
*

1 point

True

False

17. A check must be endorsed or signed by the payee in order for the check to be cashed.

1 point

True

False

18. Checks can be endorsed anywhere on the back of the check.

1 point

True

False

19. You can use either pen or pencil for financial transactions such as writing checks and endorsements.

1 point

True

False

20. A check register is a booklet used to record all account transactions.

1 point

True

False

21. A typical bank statement shows the beginning balance, a list of deposits, a list of checks and other withdrawals, and an ending balance.
*

1 point

True

False

22. The 1978 Electronic Funds Transfer Act requires financial institutions to offer consumers a copy or receipt for online transactions.
*

1 point

True

False

23. When protecting financial accounts, it is acceptable to autosave your username and passwords since those are encrypted.
*

1 point

True

False

24. Consumers should not give out social security numbers or account numbers to anyone over the telephone or in an email.
*

1 point

True

False

25. Once you have created a password for an account, it is not necessary to change the password.
*

1 point

True

False

26. It is not necessary to sign off from online banking when finished since the system will automatically log-off you off after a set time period.
*

1 point

True

False

27. Financial institutions must provide secured websites with updated encryption techniques.

1 point

True

False

28. Checks and deposit slips always include a routing number and an account number.

1 point

True

False

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