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consumer ed > ch 2 > Flashcards

ch 2 Flashcards

1
Q

savings and loan associations began as a source of funds to buy homes

A

true

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2
Q

when an early bank made a loan, the borrower received gold

A

false

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3
Q

gold is an example of a specie

A

true

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4
Q

thomas jefferson proposed the first bank of the US

A

false

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5
Q

credit unions began as non profit cooperatives

A

true

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6
Q

the free banking period began after the civil war

A

True

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7
Q

wildcat banks were examples of very poor banking practices

A

true

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8
Q

today most credit unions are owned by commercial banks

A

false

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9
Q

historically, banks could issue their own currency

A

true

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10
Q

mutual savings banks were begun for the benefit of the poor

A

true

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11
Q

the federal reserve system began with the banking act of 1864

A

false

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12
Q

the savings and loan crisis took place in the early 20th century

A

false

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13
Q

the federal reserve system includes 12 reserve banks

A

true

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14
Q

mutual savings banks were founded mainly in the far west

A

false

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15
Q

the federal reserve bank issues our currency

A

true

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16
Q

at one time, the US had more than 9,000 bank notes circulating

A

true

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17
Q

the federal reserve bank regulates credit in the US

A

true

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18
Q

offers checking accounts to consumers

A

commercial banks, credit unions, savings and loan assoc.

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19
Q

offers loans to consumers

A

commercial banks, credit unions, savings and loan assoc.

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20
Q

offers savings accounts to consumers

A

commercial banks, credit unions, savings and loan assoc.

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21
Q

offers credit cards to consumers

A

commercial banks, credit unions, savings and loan assoc.

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22
Q

offers home mortgages

A

commercial banks, credit unions, savings and loan assoc., mortgage companies

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23
Q

offers gov. savings bonds

A

commercial banks, credit union, savings and loan assoc.

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24
Q

clears and collects checks

A

federal reserve banks

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25
Q

also known as small loan companies

A

savings and loan assoc.

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26
Q

non-depository institutions

A

finance companies, mortgage companies, investment companies, federal reserve bank

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27
Q

regulates the availability of credit

A

federal reserve bank

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28
Q

offers investment services to consumers

A

commercial banks, credit union, savings and loan assoc., and investment companies

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29
Q

offers trust services to consumers

A

commercial banks, credit unions, savings and loan assoc.

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30
Q

offers loans to commercial businesses

A

commercial banks, savings and loan assoc., finance companies, mortgage companies

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31
Q

offers car loans to consumers

A

commercial banks, credit unions, savings and loan assoc., finance companies

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32
Q

holds the reserves of member banks

A

federal reserve banks

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33
Q

our currency is federal reserve notes

A

true

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34
Q

there are 7 denominations of our currency in circulation

A

true

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35
Q

george washington’s portrait is printed on the $5 bill

A

false

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36
Q

there are currently six coin denominations in circulation

A

true

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37
Q

thomas jefferson’s portrait is printed on the $20 bill

A

false

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38
Q

coins are called fractional currency

A

true

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39
Q

ben franklin’s portrait is printed on the $100 bill

A

true

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40
Q

a dollar coin could picture susan b. anthony, sacajawea, or a president

A

true

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41
Q

our currency is issued by the 10 federal reserve banks

A

false

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42
Q

large portrait notes began replacing small portrait notes in 2000

A

false

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43
Q

franklin roosevelt is pictured on the dime

A

true

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44
Q

large portrait notes have a number of features to deter counterfeiting

A

true

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45
Q

abraham lincoln is pictured on the penny

A

true

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46
Q

large portrait notes have a security thread, a watermark, and microprinting

A

true

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47
Q

ulysses s. grant’s portrait is printed on the $50 bill

A

true

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48
Q

alexander hamilton’s portrait is on the $1 bill

A

false

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49
Q

thomas jefferson is pictured on the nickel

A

true

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50
Q

george washington’s portrait is on the $10 bill

A

false

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51
Q

federal reserve notes are now printed in various colors

A

true

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52
Q

george washington has been replaced on the quarter with designs emblematic of the 50 states

A

false

53
Q

checking accounts are demand deposits

A

true

54
Q

only banks can offer checking accounts

A

false

55
Q

to open a checking account, you must sign a signature card

A

true

56
Q

all checking accounts pay interest on the account balance

A

false

57
Q

the amt is written twice on a check in words and numbers

A

true

58
Q

a debit card transaction is a subtraction from a checking account balance

A

true

59
Q

a blank endorsement allows a check to be cashed by anyone

A

true

60
Q

a check includes a transit number, routing symbol, and account number

A

true

61
Q

a debit would be an addition to a checking account balance

A

false

62
Q

a full endorsement means a check can only be deposited in our account

A

false

63
Q

a payment would be a subtraction from a checking account balance

A

true

64
Q

every check that is cleared goes through a federal reserve bank

A

false

65
Q

an e-check is a way to make checking account purchases on the internet

A

false

66
Q

all withdrawals are made from a checking account by writing a check

A

false

67
Q

all checking account transactions should be entered in the check register

A

true

68
Q

a checking account statement lists only check transactions

A

false

69
Q

a register is a listing of your checking account transactions

A

true

70
Q

your signature on the back of a check is a restrictive endorsement

A

false

71
Q

a monthly account statement will list all checks written during that month

A

false

72
Q

you should reconcile your register against your account statement

A

true

73
Q

the check 21 act is designed to eliminate all paper checks by 2020

A

false

74
Q

you will earn interest

A

statement savings, money market savings, certificates of deposit, savings bonds

75
Q

a loan to the federal gov.

A

savings bonds

76
Q

your money is safe

A

statement savings, money market savings, certificates of deposit, savings bonds

77
Q

you can buy them at a discount

A

savings bonds

78
Q

requires a large deposit than a statement savings account

A

money market savings, certificates of deposit

79
Q

pays compound interest

A

statement savings, money market savings, certificates of deposit, savings bonds

80
Q

interest is exempt from state income tax

A

savings bond

81
Q

a penalty is paid for early withdrawal

A

certificates of deposit, savings bonds

82
Q

this type of saving involves a risk of loss

A

under the mattress

83
Q

your monthly withdrawals will be limited

A

money market savings

84
Q

a good choice for an emergency fund

A

statement savings

85
Q

good choices for long term savings

A

money market savings, certificates of deposit, savings bonds

86
Q

includes EE and I

A

savings bond

87
Q

offers the highest liquidity

A

certificates of deposit

88
Q

offered by all financial institutions

A

statement savings, money market savings, certificates of deposit, savings bonds

89
Q

a contract specifies the terms of a loan

A

true

90
Q

finance companies are an inexpensive source of loans

A

false

91
Q

add-on interest is the most common way loan interest is calculated

A

false

92
Q

all loans require that the money be used in a specific way

A

false

93
Q

the cost of credit is interest

A

true

94
Q

loans are a major source of income to financial institutions

A

true

95
Q

credit unions sell credit info to financial institutions

A

false

96
Q

a loan contract must disclose the annual percentage rage being charged

A

true

97
Q

amortized loans charge simple interest

A

true

98
Q

your ability to get a loan will depend on your credit score

A

true

99
Q

your ability to get a loan will depend on your ability to repay it

A

true

100
Q

savings a loans can only lend money for home mortgages

A

false

101
Q

a loan contract must disclose the total of payments

A

true

102
Q

the first step in the loan process is usually completing an application

A

true

103
Q

credit is a privilege and not a right

A

true

104
Q

if you have a job, you can always qualify for a loan

A

false

105
Q

the fair credit reporting act requires that a loan contract disclose the financial terms of the loan

A

false

106
Q

add-on interest is cheaper than interest on the unpaid balance

A

false

107
Q

credit card loans are amortized loans

A

false

108
Q

a loan contract must disclose the total finance charge

A

true

109
Q

these would be used to send money through the mail

A

cashier’s check, certified check, money order

110
Q

you can use this to get cash at many locations

A

automated teller machine

111
Q

you might use these services when planning a trip abroad

A

currency exchange, travelers checks, insurance

112
Q

these services could be used to manage your assets

A

trust services, investments, insurance

113
Q

a banks check

A

cashiers check

114
Q

$1.40 US for 1 Euro

A

currency exchange

115
Q

your check guaranteed

A

certified check

116
Q

accepted everywhere for payment

A

cashier’s check, certified check, money order, traveler’s check

117
Q

involves the risk of losing your money

A

investments

118
Q

a secure place for valuables

A

safe deposit box

119
Q

online banking is available 24/7

A

true

120
Q

with online banking, funds can be transferred between accounts

A

true

121
Q

all banks are required to have a brick and mortar location

A

false

122
Q

you can make cash withdrawals online

A

false

123
Q

one disadvantage of online banking is not being able to take face-to-face with your banker

A

true

124
Q

access to your online accounts requires a user ID and password

A

true

125
Q

you can make loan payments online

A

true

126
Q

you can pay bills online

A

true

127
Q

online bill payment is instantaneous so you can wait until the last minute

A

false

128
Q

an e-bill is the charge you must pay your bank for online banking

A

false

129
Q

the first financial institutions in america were commercial banks

A

true

consumer ed (2 decks)

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