POB Unit 4 Test Question Preview (ID: 25214)


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James received a $100 check. He wants to endorse this check over to Steve. Which type of endorsement should James use?
a) Blank
b) Full
c) Non-endorsement
d) Restrictive

Direct Finance Company's primary function is to use its own money instead of customers' savings to provide loans to other businesses. This is an example of which type of financial institution?
a) Depository
b) Check-cashing outlet
c) Non-depository
d) pawnshop

Mary prefers a relatively safe investment that will allow her to withdraw money after a few days without losing any of her principal. Which is the BEST investment choice for Mary?
a) Bond Investment
b) Certificate of deposit
c) money market account
d) stock investment

Jennifer prefers a financial institution that will meet her business needs such as access to checking options, credit cards, and loans. Which characteristic(s) of financial institutions does she prefer
a) Fees and charges
b) restrictions
c) services
d) safety

Tonya compared revenue of $30,000 to expenses of $22,000 to determine whether her business experienced a net income or loss. Which type of financial statement was used?
a) balance sheet
b) budget
c) income statement
d) statement of owner's equity

Harry's Grocery Store revenue for last year was $98,000 and it paid $103,000 in expenses. Which is the net income/net loss amount for the store?
a) $5,000 net income
b) $5,000 net loss
c) $9,000 income
d) $9,000 net loss

Carl estimated that his business could invest an additional $40,000. Which type of budget was used?
a) Cash
b) Expansion
c) Operating
d) Start-up

Alicia should use which type of budget to analyze the business performance of her floral company?
a) Cash
b) Expense
c) Operating
d) Start-up

Paul reviewed his company's budget for six months and determined that it is spending less on utilities. Which type of budget was used?
a) Cash
b) Expansion
c) Operating
d) Start-up

The Federal Reserve System approved the merger of Wachovia Bank and Wells Fargo Bank. This is an example of which service of the Federal Reserve System?
a) Acting as a clearinghouse
b) Approving bank mergers
c) Managing the discount rate
d) Participating in open market activities

An investor prefers a financial institution that offers access to local branches and ATM machines near her home and job. Which characteristic(s) of financial institutions the investor prefers?
a) Convenience
b) Fees and Charges
c) Restrictions
d) Safety

Last year's revenue for Zoe's Company was $95,000 and it paid $83,000 in expenses. Which is the net income/net loss amount for the business?
a) $5,000 net income
b) $5,000 net loss
c) $12,000 net income
d) $19,000 net loss

Ford Motor Company determined it can afford to start selling vehicles that imitate a living room on wheels. This is an example of what kind of financial planning?
a) Expansion
b) Personal
c) Operation
d) Start-up

Which is the FIRST step in opening a checking account?
a) Completing a signature card
b) Completing a bank reconciliation
c) Ordering a set of checks
d) Recieving the first cancelled check

The Federal Reserve System supplied the monetary system with $300 billion. This is an example of which service of the Federal Reserve System?
a) Acting as a clearinghouse
b) Approving bank mergers
c) Managing the discount rate
d) Participating in open market activities

Todd gave Intrek Computer Services a personal check for which his bank guaranteed payment. This is an example of which type of payment services?
a) Certified check
b) electronic
c) money order
d) traveler's check

The Federal Reserve System aids in transferring funds between banks in North Carolina and New Jersey. This is an example of which service of the Federal Reserve System?
a) Clearinghouse
b) Participation in open market operations
c) Supervision of banks
d) Managing the discount rate

Amana Appliance Company determined the affordability to start selling self-cleaning stoves. This is an example of what kind of financial planning?
a) Expansion
b) Personal
c) Operation
d) Start-up

An investor prefers a financial institution that offers safe deposit boxes, trusts, and loans. Which characteristic(s) of financial institutions the investor prefers?
a) Fees and charges
b) Restrictions
c) Services
d) Safety

Sarah purchased school supplies with a store gift card of $300. This is an example of which type of payment services?
a) Cashier's check
b) Certified check
c) Electronic
d) Money order

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