Personal Finance Practice EOC Part 1

Front

Which describes the best way for people to understand trends in their spending? Options: analyzing all expenditures, saving 10% from each paycheck, tracking automatic bill payments, keeping receipts for all purchases over $10

Back

analyzing all expenditures

Front

Which payment method is most often used when purchasing a home?

Back

mortgage

Front

Which feature of using a local bank or financial institution is an advantage for account holders? Options: free ATM access, short lobby hours, not federally insured, limited customer service options

Back

free ATM access

Front

What guarantees that sufficient funds for a payment exist in a bank account? Options: deposit ticket, check register, certified check, personal check

Back

check register

Front

Tyler is unable to visit the bank during business hours to deposit his paycheck, so he must drop the check into the night depository. Which type of endorsement should he use on the check?

Back

restrictive, because he is not presenting the check in person

Front

Which statement best explains the bank's response regarding Jackson's liability for unauthorized transactions on his debit card? Options: Debit cardholders must be able to prove they did not authorize transactions. Debit cardholders must contact a bank within 48 hours of discovering a card is missing to avoid liability. Debit cardholders are responsible for all unauthorized charges if they do not report a missing card within 60 days. Debit cardholders are responsible for a specified amount of unauthorized charges if they report a missing card between 48 hours and 60 days.

Back

Debit cardholders are responsible for a specified amount of unauthorized charges if they report a missing card between 48 hours and 60 days.

Front

The Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) both guarantee to protect accounts containing up to

Back

$250,000

Front

Transportation maintenance costs include fuel and oil changes. Which other expense would be included in this category? Options: tires, speakers, sunglasses, window tint

Back

tires

Front

Why do insurance companies create policies?

Back

to provide coverage for unexpected financial loss

Front

Which statement best explains why Carmen would increase the deductibles on her auto insurance policy?

Back

to reduce her premium