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Banking & Investment Policies & Procedures Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. When did savings account interest rates start falling?

Question 2 2. Which of the following is considered a savings account?

Question 3 3. Why do older people put their money in savings accounts?

Question 4 4. A healthy use of investments and loans would involve:

Question 5 5. Painton Company Ltd is a company specializing in making paints. Which of these is an example of an investment made by Painton Company Ltd?

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Question 6 6. How is depreciation BEST described?

Question 7 7. Berto wants to invest in a company but he also wants some amount of control of the operations. Why would Berto choose stocks over bonds?

Question 8 8. Which of the following provides ownership in every company traded on a given exchange?

Question 9 9. Which of the following provides a loan to a company or government?

Question 10 10. An investor is in the 30% ordinary income tax bracket and pays 15% capital gains tax. What is the savings for them if they wait until an investment with a profit of $10,000 has been held for more than 12 months before they sell?

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Question 11 11. Pension payments and distributions from mutual funds are taxed at _____ rates.

Question 12 12. A stock sold for a gain after just 10 months of holding the investment will be taxed at _____ rates.

Question 13 13. Why might a person take out a bank loan?

Question 14 14. What is an agreement between the borrower and the bank that the loan will be paid back in a specific amount of time at a specific interest rate?

Question 15 15. What is a secured loan?

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Question 16 16. What is the advantage to having both a basic checking account and a money market account?

Question 17 17. All of the following are an advantage of a checking account EXCEPT:

Question 18 18. _____ is required if you want to use a debit card for purchases and to withdraw cash from an ATM.

Question 19 19. What is inflation risk?

Question 20 20. What is the definition of risk?

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Question 21 21. What is the definition of investment risk?

Question 22 22. Which type of bank is insured by the National Credit Union Share Insurance Fund?

Question 23 23. Which one of the following is not a function of investment banks or systems?

Question 24 24. Which banks are usually chartered by the state they do business in?

Question 25 25. Why are savings accounts not the best choice for long-term investments?

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Question 26 26. Which of the following BEST describes the relationship between investments and loans?

Question 27 27. Which of the following is provided by a bank and pays a slightly higher interest rate if you agree not to touch the money for a set period of time?

Question 28 28. The two major classifications for investment taxes are _____ and _____

Question 29 29. Which of these is not a difference between unsecured and secured bank loans?

Question 30 30. Lamar's employer is doing away with paper paychecks in favor of direct deposit. How does this benefit Lamar?

Banking & Investment Policies & Procedures Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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