Multiple Choice Questions

13.1 Karina keeps excellent records and always knows precisely how much is in her bank account. However, when she receives her bank statement, she's surprised to see that she has been charged a $5.00 overdraft fee. After reviewing her well-kept records, she cannot find anything that is incorrect. Which would be the best action for Karina to take?
  • Check her records against her bank statement.
  • A higher risk often means a higher return.
  • checking one's financial records against the bank's
  • Checking accounts allow used checks to act as receipts.
13.1 When Seb reconciles his accounts, what is the first step he should take?
  • He most likely would have benefited by diversifying.
  • demand for investments.
  • Confirm his records are accurate and include all transactions.
  • The greater the risk, the greater the potential return.
13.1 Many checking accounts offer multiple ways of accessing money in addition to checks. Which of these can be used to access money in a checking account?
  • Account A
  • retirement
  • Account B
  • debit card
13.2 Selma deposited a paycheck for $378.She'll use the check register to record her transaction. What will be her new balance?
  • $3,014.83
  • Account B
  • debit card
  • $3,675
13.2 James wants an account with the lowest fees. Which checking account would be best for James?
  • Account B
  • are considered safer.
  • $3,014.83
  • Account A
13.2 Wilbur wants a checking account with the lowest fees. Which checking account would be best for Wilbur?
  • are considered safer.
  • Debit
  • Account A
  • Account B
13.2 Ming made a car insurance payment of $122.He'll use the check register to record his transaction. What will be his new balance?
  • $3,014.83
  • Debit
  • 679.60
  • Account B
13.3 Long-term investments are most commonly used to save money for
  • stockmutual fund
  • corporation
  • debit card
  • retirement
13.2 Sarah transferred $450.00 from her savings account to her checking account. She'll use the check register to record her transaction. What will be her new balance?
  • 679.60
  • 700.05
  • Account A
  • $3,014.83
13.3 What is the definition of risk?
  • possibility of losing money on an investment
  • checking one's financial records against the bank's
  • A higher risk often means a higher return.
  • news that a company is about to release a promising product
13.4 Compared to high-risk investments, low- and medium-risk investments are in higher demand because they
  • Account A
  • a money market account
  • investment returns.
  • are considered safer.
13.4 If an investor has a $5,000 pretax return, the state tax rate is 4.5%, and the federal tax rate is 22.0%, what is the real investment value?
  • $3,675
  • $3,014.83
  • Debit
  • debit card
13.1 Sara would like to open a bank account. What will she need to do this? Check all that apply.
  • increased interest ratesdecreased borrowingdecreased investing
  • identification cardmoney to start the accountproof of address
  • The greater the risk, the greater the potential return.
  • news that a company is about to release a promising product
13.2 Beth withdrew $35 from her checking account. In which column should she record the $35 withdrawal?
  • Account B
  • debit card
  • Debit
  • Account A
13.1 In which situation would a certificate of deposit (CD) be the best banking choice?
  • The greater the risk, the greater the potential return.
  • Hafsa wants a guaranteed return, and won't need the money for several years.
  • news that a company is about to release a promising product
  • It can be purchased from a banking institution.It can be purchased for almost any amount.
13.4 Interest rates generally reflect
  • possibility of losing money on an investment
  • It decreases the value of money.
  • The greater the risk, the greater the potential return.
  • the level of risk in an investment.
13.3 Someone who diversifies investments is more likely to
  • news that a company is about to release a promising product
  • offset their losses with gains.
  • It decreases the value of money.
  • A higher risk often means a higher return.
13.3 Which statements apply to a certificate of deposit (CD)? Check all that apply.
  • It can be purchased from a banking institution.It can be purchased for almost any amount.
  • mutual fundsbondsretirement fundscommodities
  • It decreases the value of money.
  • The greater the risk, the greater the potential return.
13.4 Changes in monetary policy have the greatest effect on
  • are considered safer.
  • demand for investments.
  • Fiscal
  • offset their losses with gains.
13.4 policy involves government changes to spending or taxation to affect the economy.
  • demand for investments.
  • Fiscal
  • $3,675
  • offset their losses with gains.
13.1 Sofia has saved $10,She wants to be sure that she is earning interest on her money and can add to her savings. She also wants to be able to access her money if the need should arise.Which type of account is most suitable for Sofia's needs?
  • a commercial bank
  • investment returns.
  • are considered safer.
  • a money market account
13.2 Jana wants an account with the lowest fees. Which checking account would be best for Jana?
  • Account A
  • Account B
  • debit card
  • Debit
13.3 Which are examples of high-risk investments? Check all that apply.
  • stockmutual fund
  • mutual fundsbondsretirement fundscommodities
  • Account A
  • It decreases the value of money.
13.3 What does the information demonstrate about Alex's investments?
  • offset their losses with gains.
  • They last for a set period of time.
  • He most likely would have benefited by diversifying.
  • demand for investments.
13.1 Which of these is a characteristic of certificates of deposit (CDs)?
  • They last for a set period of time.
  • Confirm his records are accurate and include all transactions.
  • He most likely would have benefited by diversifying.
  • offset their losses with gains.
13.2 Which checking account would be best for Kylie?
  • corporation
  • Account B
  • Account A
  • stockmutual fund
13.1 What does reconciling an account involve?
  • possibility of losing money on an investment
  • Checking accounts allow used checks to act as receipts.
  • A higher risk often means a higher return.
  • checking one's financial records against the bank's
13.4 Which statement best describes how inflation affects the value of investments over time?
  • It can be purchased from a banking institution.It can be purchased for almost any amount.
  • mutual fundsbondsretirement fundscommodities
  • It decreases the value of money.
  • The greater the risk, the greater the potential return.
13.4 Taxes are often owed on
  • stockmutual fund
  • are considered safer.
  • investment returns.
  • the level of risk in an investment.
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Multiple Choice Questions
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