FCS 340 EXAM 2 QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
If you lose your debit card and notify your financial institution within two days, how much are you
potentially liable for? - Answers Anywhere between $50 to $500
When you select a financial services provider, what are major factors to consider? - Answers
Convenience; Service; Interest rates (borrowing); Fees
What type of financial services does a credit card company provide - Answers Short-term lending
What type of financial services does a investment company provide - Answers Mutual funds, money
market funds
What type of financial services does a life insurance company provide - Answers Life Insurance,
savings and investments
What type of financial services does a mortgage company provide - Answers Loan for house
What type of financial services does a payday loan company provide - Answers Cash advancements
with high interest rates
Which of the financial services listed in Question 3 will likely provide the most expensive access to
funds? - Answers Payday Loans
What type of institution is most likely to provide a full range of financial services, including checking,
savings, and lending? - Answers Commercial Bank
Ed needed some cash quickly, so he received a short-term loan based on the value of an old ring.
Where did he go? - Answers Pawnshop
What would be considered a drawback of a savings account? - Answers Low returns; Withdrawal
Limitations; Missed Opportunities
A certificate of deposit that has different interest levels based on the stock market performance is
called a - Answers Stock Indexed CD
A savings plan requiring that a certain amount be left on deposit for a stated time period to earn a
specified interest rate - Answers A certificate of deposit
usually earns interest only if the account stays above the required amount - Answers An interest-
earning checking account
A savings account offered by banks, savings and loan associations, and credit unions that requires a
minimum balance and has earnings based on market interest rate. - Answers A money market
account
A mutual fund that invests in short-term debt securities, such as commercial paper, banker's
acceptance, repurchase agreements, T-bills, and negotiable CDs. - Answers A money market fund
Previously called a passbook, or statement accounts, usually involves a low or minimum balance and
allows you to withdraw money as needed. - Answers A regular savings account
Earnings on savings can be measured by the __________ - Answers Rate of Return
Earning interest on interest is called ___________________ - Answers Compounding Interest
The Truth in Savings Act requires financial institutions to disclose the
_____________________________________ on savings accounts. - Answers Annual Percentage Yield
(APY)
What does the term liquidity mean? - Answers Quick availability of cash
The insurance coverage provided by the FDIC for a savings account is ______________ per depositor.
- Answers $250,000
Takes money directly out of account - Answers debit card
Delaying payment, short-term loan - Answers credit card
Electronic (paypal account) $ could be taken directly from your card - Answers online payment
Offered by retailer (Dillards) - Answers stored-value card
Microchip, more info on it about you - Answers smart card
What is a stop-payment order? When do you use it? - Answers When you need to stop payment on a
check. If lost or stolen
Given the information here, what should Jason's adjusted checkbook balance be?
· Bank balance $400
· Outstanding checks: $229
· Deposit in transit: $50
· ATM Fee: $26
· Interest earned: $5
· Checkbook balance $342 - Answers $342-$26+$5=$321
If you lose your debit card and notify your financial institution within two days, how much are you
potentially liable for? - Answers Anywhere between $50 to $500
When you select a financial services provider, what are major factors to consider? - Answers
Convenience; Service; Interest rates (borrowing); Fees
What type of financial services does a credit card company provide - Answers Short-term lending
What type of financial services does a investment company provide - Answers Mutual funds, money
market funds
What type of financial services does a life insurance company provide - Answers Life Insurance,
savings and investments
What type of financial services does a mortgage company provide - Answers Loan for house
What type of financial services does a payday loan company provide - Answers Cash advancements
with high interest rates
Which of the financial services listed in Question 3 will likely provide the most expensive access to
funds? - Answers Payday Loans
What type of institution is most likely to provide a full range of financial services, including checking,
savings, and lending? - Answers Commercial Bank
Ed needed some cash quickly, so he received a short-term loan based on the value of an old ring.
Where did he go? - Answers Pawnshop
What would be considered a drawback of a savings account? - Answers Low returns; Withdrawal
Limitations; Missed Opportunities
A certificate of deposit that has different interest levels based on the stock market performance is
called a - Answers Stock Indexed CD
A savings plan requiring that a certain amount be left on deposit for a stated time period to earn a
specified interest rate - Answers A certificate of deposit
usually earns interest only if the account stays above the required amount - Answers An interest-
earning checking account
A savings account offered by banks, savings and loan associations, and credit unions that requires a
minimum balance and has earnings based on market interest rate. - Answers A money market
account
A mutual fund that invests in short-term debt securities, such as commercial paper, banker's
acceptance, repurchase agreements, T-bills, and negotiable CDs. - Answers A money market fund
Previously called a passbook, or statement accounts, usually involves a low or minimum balance and
allows you to withdraw money as needed. - Answers A regular savings account
Earnings on savings can be measured by the __________ - Answers Rate of Return
Earning interest on interest is called ___________________ - Answers Compounding Interest
The Truth in Savings Act requires financial institutions to disclose the
_____________________________________ on savings accounts. - Answers Annual Percentage Yield
(APY)
What does the term liquidity mean? - Answers Quick availability of cash
The insurance coverage provided by the FDIC for a savings account is ______________ per depositor.
- Answers $250,000
Takes money directly out of account - Answers debit card
Delaying payment, short-term loan - Answers credit card
Electronic (paypal account) $ could be taken directly from your card - Answers online payment
Offered by retailer (Dillards) - Answers stored-value card
Microchip, more info on it about you - Answers smart card
What is a stop-payment order? When do you use it? - Answers When you need to stop payment on a
check. If lost or stolen
Given the information here, what should Jason's adjusted checkbook balance be?
· Bank balance $400
· Outstanding checks: $229
· Deposit in transit: $50
· ATM Fee: $26
· Interest earned: $5
· Checkbook balance $342 - Answers $342-$26+$5=$321
