FCS 103 1st EditionFinal Exam Study Guide FCS 103 – Exam 4 Study Guide – 50 ques. M/C (100 pts.) relate to the items below.Chapter 13 –Banks - FROM ASSIGNMENT 51. A c_____________ check is a personal check that has been validated, stamped and signed by a bank official.a. Certified Check 2. A consumer willing to save for a long time period would place funds in a c _ __ o __ d ______.a. Certificate of Deposit 3. At least once/month, account holders should r__________ accounts to match bank statements with ledgers.a. Reconcile 4. Banks make their income from 2 sources, i and f .a. Interest and Fees5. Using the f__________ r_________ system, banks keep minimum levels of funds available for loans.a. Fractional Reserve6. If I am concerned about receiving a “good check”, ask for a c________ check, written by bank directly to me.a. Cashier’s7. If funds are taken from a CD early, an e ______w p may be assessed.a. Early Withdrawal Penalty 8. Instead of using a credit card to pay for purchases, a d______ card takes funds directly from accounts to pay.a. Debit9. The agency of the federal government that insures banks is the .a. FDICThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.10. The highest value paper (denomination) bill in current circulation is the $______ bill. a. 100 (One-hundred)11. There are 3 ways to endorse a check: b_________ is just signing your name, s_________ is signing your check to another, and r_____________ is commonly used to insure a deposit only.a. Blankb. Special c. Restrictive12. To keep a check from being cashed that was written & given, a s____-p_______ o______ is used (for a fee).a. Stop Payment Order 13. Truth in savings laws require banks to declare their _______ , which is their standard savings interest rate.a. APR (Annual Percentage Rate) Chapter 14 slides – THERE WILL ALSO BE QUESTIONS FROM GUEST SPEAKER!!!!14. What % of US households hold a general purpose credit card? a. 70%15. What is the median number of general purpose cards held? a. 2 per family16. How many cards (including all types) are in the average household?a. 9 Cards for the average cardholder 17. There were 7 reasons to justify why Americans use credit – please be familiar with thema. Take advantage of special pricingb. Consolidation billsc. Safeguard for emergenciesd. Travel without much cashe. Increasing future earnings (investing to expand)f. Credit (just like previous reason!)g. Attend school18. What are advantages and disadvantages of saving up to buy a car?a. Savings Advantages– i. Save for 4 years - set aside money, even earn interestii. Could end up spending less than $20,000 with interestiii. Car costs > $20,000 as you pay interest for 4 yearsb. Savings Disadvantages—i. No use of the car for 4 yearsii. Interest may raise taxesiii. Will the car cost the same $20,000 in 4 years? Not likely.19. What do lenders of money “give up” and that is why they charge you for you using the money?a. Lender gives up opportunity to use funds themselves - You pay their opportunity costs20. What is sometimes needed to be listed on a loan application to “back up” the loan” (C word)a. Collateral 21. What is APR? What affects loans to be more expensive with same up front interest? (another C word answer)a. Interest compounded22. What is the “up front” money sometimes required for a loan called?a. Discount points or points 23. What is another synonym phrase for the required “rescission” enacted by law?a. “Cooling off period” 24. What is the common 4-letter acronym for a credit score?a. FICO 25. What are several factors used in calculating that score?a. Payment history, amount owed, type of credit, new credit, length of credit history 26. What are the names of the 3 Bureaus that usually calculate the credit score?a. Experianb. Equifaxc. Trans Union 27. What is the maximum $$ liability by law if you lose your credit card?a. No liability if it’s reported immediately, $50 for debit card28. How long does a bankruptcy record stay on your credit report? What about a student loan?a. 10 years, student loans stay until payed29. Where (website) do I go to get my free credit report each year? a. www.annualcreditreport.com30. Which 2 criteria have the greatest weight by percent in your credit score? What are tips for raising your score?a. Payment history, amounts owed b. Pay bills on time, don’t take out more credit than you need, don’t carry balances more than 30%Chapter 15 – Investing For Your Future31. A reason to use a R____ IRA is that since you pay t_____ as the $$ go in you don’t pay them as you withdraw $$.a. Roth IRA32. With a m_____ fund I invest money & d______ $$ in different companies, rather than all in only 1 company.a. Mutual b. Diversify 33. An organization that can trade stocks with many large corporations electronically is the N_______.a. NASDAQ34. Since 1981, retirement planning offered an i______ r_____ a______, with limits of what can be placed annually.a. Individual Retirement Accounts 35. If I buy c_____ stock in a company I get to vote for Board members, but if I buy p______ stock I do not get a vote, but I DO get a fixed dividend for my investment, even if the company isn’t making $$.a. Commonb. Preferred 36. If I buy shares of a company and it gains value it is called a c_______ g____ and it a______ in value but If I buy shares of a company and it loses value, it is called a c______ l_____ and it d_______ in value.a. Capital Gainb. Appreciatesc. Capital Lossd. Depreciates37. Many corporations offer ______ plans for their employees and the employee can deduct the income before paying income taxes, but they do pay taxes when w__________ $$ when retiring.a. 401K, withdrawn 38. Self-employed individuals were allowed to set up their own retirement plans in 1962, called K_____ funds.a. Keogh39. The largest US centralized (trading on site) stock market is N___ Y___ S_____ E______, located on W_____ Street.a. New York Stock Exchangeb. Wall40. Those IRAs should not be touched until age _____ and must be at least partially withdrawn by age ____.a. 59.5b. 70.5Chapter 16 - The Health-Care Dilemma 41. If your medical treatment requires admission and assignment to a bed, you are an i________________a. Inpatient 42. If your