W!se Practice Test 1

Front

What is the US dollar primarily considered?

Back

Fiat Money

Front

Which of the following statements about the US dollar is true?
Options:
It is backed by gold.
It is backed by silver.
It is legal tender.
It is illiquid.

Back

It is legal tender.

Front

What does liquidity refer to?

Back

The ease of converting something to cash.

Front

What is the primary purpose of a checking account at a bank?

Back

To store cash and checks.

Front

What does the Federal Deposit Insurance Corporation (FDIC) do?

Back

Insures every bank account up to $250,000.

Front

What is the purpose of overdraft protection in a checking account?

Back

To avoid insufficient funds fees.

Front

What is the purpose of reconciling your checking account regularly?

Back

To compare your ledger with the bank’s monthly statement.

Front

Which of the following statements about debit cards is true?
Debit cards are the same as credit cards.
Debit cards require a PIN for credit transactions.
Debit cards allow you to borrow money.
Debit cards are not linked to your checking account.

Back

Debit cards require a PIN for credit transactions.

Front

What should you do if your ATM or debit card is stolen?

Back

Report it immediately to your bank.

Front

Which of the following is a written document that guarantees payment to the payee (either a person or company) and can be purchased at convenience stores or post offices? Cash, Money Order, Cashier’s Check, Personal Check

Back

Money Order