Financial Services Marketing
Practice Test
1.
The Coffee Coffee Coffee House makes its weekly deposits into its bank account after the bank has closed. They place their deposits in
a.
the ATM
b.
a mutual fund
c.
the night depository
d.
the after-hours drop
2.
A personal or business check that is guaranteed by the financial institution to be good for the entire amount is called a
a.
cashier’s check
b.
certified check
c.
certificate of deposit
d.
teller check
3.
Which of the following is considered an individual pension plan?
a.
IRA
b.
CD
c.
mutual fund
d.
trust
4.
A type of savings account where an amount of money is deposited at a stated interest rate for a predetermined amount of time is known as a
a.
money market deposit account
b.
certificate of deposit
c.
money order
d.
checking account
5.
Janet invests $100 per month in a pension plan that earns interest. Neither the money invested nor its interest earned can be withdrawn until Janet reaches age 59 1/2. What instrument did Janet invest in?
a.
life insurance
b.
securities
c.
a CD
d.
an individual retirement account
6.
The commitment of present funds in order to get future income is known as
a.
investing
b.
borrowing
c.
insuring
d.
demanding
7.
Which of the following laws prohibits lenders from evaluating credit applications based on a person’s race, marital status, or sex?
a.
Truth-in-Lending Act
b.
Fair Credit Reporting Act
c.
Equal Credit Opportunity Act
d.
Fair Debt Collection Practices Act
8.
A financial institution that provides services such as receiving and paying out money, providing investment counseling, setting up trust funds, issuing credit cards, providing traveler’s checks, selling securities, and administering estates is known as
a.
a finance company
b.
a discount brokerage
c.
a full-service bank
d.
a credit union
9.
Property that can be held by a financial institution to ensure payment of a loan is called
a.
capacity
b.
collateral
c.
bonds
d.
holding
10.
An agency that supplies credit information to clients about customers applying for credit is called
a.
a credit union
b.
a credit bureau
c.
a collection agency
d.
the Securities and Exchange Commission
