Name: Year & Sec,on: Score:

MIDTERM ACTIVITY
BANKING AND FINANCIAL INSTITUTION
2nd Semester, SY 2023-2024

1. "Statement I. Long-term goals should be planned in coordination with short-term and intermediate ones.
Statement II. Setting and achieving short-term goals is the basis for achieving long-term goals. "

a. Both Statements are False

b. Statement I is true; Statement II is false
c. Statement I is False; Statement II is True
d. Both Statements are True

2. Deanna Kai deposits Php 4,500 at the beginning of each month (12 Jmes a year) in a fund that serves at 24%
compounded monthly. How much is the fund at the end of 3 years?
a. Php 48,571
b. None of these
c. Php 283,654.15
d. Php 384,654.15

3. Jenny decided to buy a lot to be used in the future for her planned business. She invested in
a. Bonds
b. Bank deposit
c. Insurance
d. Real estate

4. Jen made a bank deposit worth Php 15,000. With 9% annual interest, how much is the future value of his deposit after 5
years?
a. Php 21,750
b. Php 28,500
c. Php 15,675
d. Php 13,500

5. Which is not a basic principle of personal finance Select one:

a. Start saving at young age

b. Know your take home pay
c. Don't borrow what you can't repay
d. Expend everything you have
because you have lots of money

6. Which is not a basic principle of personal finance

a. Map your financial future

b. Low returns mean high risks
c. Don`t borrow what you can`t repay
d. Budget

7. The fruit trees aaached on a farm is considered as

a. Insurance
b. Real estate
c. Product
d. Stocks

8. John has a highly dangerous job. He pays premiums every month by depositing the money to the bank account of the
engaged company. He does this so that he will have remuneration in case he will be suffering from an accident. John
is investing on

a. Bonds
b. Insurance
c. Mutual funds
d. Bank deposits

9. Which is a SMART goal?

a. To graduate with the disJncJon – cum laude

b. Marry wants to buy 10 pcs of bond papers for her art class
c. Chen plans to buy a new bag worth Php 2,000. He plans to buy it afer two
months by saving a part of his daily allowance.
 d. Franz aims to go to Disneyland

10. What is the present value of annuity due of Php 2,500 payable at the beginning of every year for 4 years, if interest rate is
10%?

a. None of these
b. Php 8,717.13
c. Php 9,909.25
d. Php 14,304.80

11. Scammers mislead investors by suggesting that big financially sound institutions participate in their programs, when in fact
such connections do not exist.

a. Offshore Investing Scheme

b. Ponzi scheme
c. Prime bank
d. Pump and dump

12. This is a type of security that signifies ownership in a corporation and represents a claim on part corporation`s assets and
earnings.

a. Mutual funds
b. Insurance
c. Real estate
d. Stock

13. You need to have Php 51,000 afer 3 years. Assuming that you will only deposit once with a 5% annual interest, how much
will you deposit today?

a. Php 48,571
b. Php 44,348
c. Php 44,056
d. Php 16,190

14. "Statement I. According to our lesson, before committing to significant expenditures, estimate how much income is likely
to be available for you.

Statement II. Two factors commonly influence your financial aspirations for the future. The first is the time frame in which
you would like to achieve your goals. The second is the type of financial need that drives your goals. "

a. Both Statements are False

b. Both Statements are True
c. Statement I is true; Statement II is false
d. Statement I is False; Statement II is True

15. “Statement I. An investment is an asset or item that is acquired with the expectation that it will generate interest, income
or appreciate its value in the future.

Statement II. A bond is a type of security that signifies ownership in a corporation and represents a claim on part of the
corporation`s assets and earnings.”

a. Statement I is False; Statement II is True

b. Both Statements are False
c. Statement I is true; Statement II is false
d. Both Statements are True

16. What will a deposit of Php 4,500 at 10% compounded semiannually be worth if left in bank for six years?

a. Php 7,959.55
b. None of these
c. Php 8,181.55
d. Php 8,081.55

17. This is a form of fraudulent investment operation where the individual or organization operator pays returns to its investors
from new capital paid to the operators by new investors recruited.

a. Offshore Investing Scheme

b. Pump and dump
c. Ponzi scheme
d. Prime bank
18. What annual interest rate would you need in order to have an ordinary annuity of Php 7,500 per year accumulate to Php
279,600 in 15 years?
 a. 14%
b. None of these
c. 16%
d. 12%
19. A senior high school student deposits a part of his salary to his bank account so that he will have funds for future use.
Which statement best depicts the situaJon
?

a. Pay yourself first

b. Know your take home pay
c. Start saving at young age
d. Budget your money

20. You need to have Php 100,000 after 4 years. Assuming that you will only deposit once with a 10% annual interest, how
much will you deposit today?

a. Php 22.727
b. Php 71,428.57
c. Php 68,301
d. Php 90,909

21. Which is not Included in SMART goal-semng guidelines

a. Specific
b. Reaction-Oriented
c. Measurable
d. Timely

22. If you require a 9 percent annual return on your investments, you would prefer Php15,000 five years from today rather
than an ordinary annuity of Php 1,000 per year for 15 years.

a. True
b. Cannot be determined
c. May be true and may be false
d. False

23. This is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's
assets and earnings.

a. Bank deposit
b. Insurance
c. Bonds
d. Real estate

24. Shaine wants to buy 10 pcs of bond papers for her art class. The statement best describes

a. Consumable-product goals
b. Intermediate goal
c. Durable-product goals
d. Long-term

25. Juneil, the owner of Hawaii Resort used her money to put up an additional cottage. Juneil invested in

a. Stocks
b. Product
c. Insurance
d. Real estate

26.Which is not a principle of personal finance?

a. Pay yourself first

b. Start saving an old age
c. Know your take home pay
d. Budget your money

27. Mark has Php 100,000 in her savings account. Mark invests in

a. Insurance
b. Bank deposits
c. Bonds
d. Mutual funds
28. This is a collecJon of investments from one or more categories.

a. Bank deposit
b. Bonds
c. Real estate
d. Mutual fund

29. Hannah Yvonne is a senior high school student. Which of her goals is realisJc?

a. To travel around the world without riding any vehicle

b. To save money for 200 years
c. To graduate with the disJncJon - cum laude
d. To buy all the dress in the Philippines

30.Which goal is acJon oriented?

a. To buy a television set

b. To buy a television set by saving a part of my salary.
c. To buy a car within 10 months
To buy a Php 1,000,000 worth car

31. How much will an ordinary annuity of Php 650 per year be worth in eight years at an annual interest rate of 6 percent?

a. Php 8,975.38
b. Php 6,897.76
c. Php 6,433.38
d. Php 7,021.80

32. "Statement I. A SMART financial goal need not be action-oriented

Statement II. A SMART financial goal must be timely"

a. Statement I is False; Statement II is True

b. Both Statements are True
c. Statement I is true; Statement II is false
d. Both Statements are False

33. "Statement I. Ordinary annuity means that periodic payments are made at the end of each payment interval while nnuity
due means that periodic payments are made at the beginning of each payment interval.

Statement II. Fixed capital are funds used for its day-to-day operations"

a. Both Statements are True

b. Statement I is true; Statement II is false
c. Both Statements are False
d. Statement I is False; Statement II is True

34. Ziemon made a bank deposit worth Php 15,000. With 20% annual interest, how much is the future value of his deposit
after 5 years?

a. Php 30,000
b. Php 25,000
c. Php 16,500
d. Php 15,500

35. "Statement I. A return is the variability of returns from those that are expected.

Statement II. The time value of money is the idea that money available at the present time has the same worth in the
future due to its potential earning capacity"

a. Statement I is true; Statement II is false

b. Both Statements are False
c. Both Statements are True
d. Statement I is False; Statement II is True

36. These product goals usually involve infrequently purchased, expensive items such as appliances, cars, and sporting
equipment; these consist of tangible items.

a. None of these
 b. Consumable-product goals
c. Durable-product goals
d. Specific Product Goal

37.Which is not a principle of personal finance?

a. Stay insured
b. Borrow what you can't repay
c. Budget your money
d. Map your financial future

38. Maria pays monthly premiums to a company with the agreement that Maria will be indemnified in case her house gets
damaged because of a natural disaster or it gets burned due to an unwanted accident. This is a type of

a. Insurance
b. Real estate
c. Bank deposit
d. Bonds

39. "Statement I. The risk-return tradeoff is the principle that potential return rises with an increase in risk.

Statement II. Time value of money deals with future value and present value."

a. Both Statements are False

b. Statement I is true; Statement II is false
c. Statement I is False; Statement II is True
d. Both Statements are True

40.Angelo plans to buy a calculator to aid him in his math class. The statement best describes

a. Intermediate goal
b. Durable-product goals
c. Consumable-product goals
d. Long-term goal

41. "Statement I. Short-term goals have a time frame from one to five years.

Statement II. intermediate goals involve financial plans that are more than five years off, such as retirement, money for
children's college education, or the purchase of a vacation home"

a. Both Statements are True

b. Statement I is true; Statement II is false
c. Statement I is False; Statement II is True
d. Both Statements are False

42. How much will an ordinary annuity of Php 650 per year be worth in eight years at an annual interest rate of 8 percent?

a. Php 6,433.38
b. Php 6,913.79
c. Php 6,366.10
d. Php 4,800.27

43. What will a deposit of Php 4,500 at 12% compounded monthly (12 times a year) be worth at the end of 10 years?

a. Php 14,851.80
b. None of these
c. Php 14,304.80
d. Php 13,997.40

44. This is a type of investment which consists of money placed into a banking institution.

a. Bonds
b. Real estate
c. Insurance
d. Bank deposit

45.Which is not a principle of personal finance?

a. Purchase insurance to avoid being wiped out by a financial loss, such as an illness or accident.
b. Obtain rate informaJon from mulJple financial services firms to get the best value for your money
c. Be an irresponsible borrower who repays as promised, showing you are worthy of gemng credit in the future.
d. An annual budget to idenJfy expected income and expenses, including savings, will help you live within your income.
46. Dulce made a bank deposit worth Php 10,000. With 0.1% annual interest, how much is the future value of her
deposit after 4 years?

a. Php 14,000
b. Php 10,400
c. Php 10,040
d. Php 11,000

47.Which of the following is not needed in solving for annuity

a. Number of Jmes the interest is compounded per year

b. Periodic payment at the end of every period
c. Interest rate
d. Principal

48. What will a deposit of Php 4,500 at 7% compounded annual interest be worth if left in the bank for nine years?

a. Php 8,385.78
b. Php 8,273.25
c. None of these
d. Php 8,279.23

49. This is the management of money and financial decisions for a person or family including budgeting, investments,
retirement planning and investments

a. None of these
b. Personal Finance
c. Corporate Finance
d. Business

50.What year did the Filipinos conceptualize a central bank for the Philippines?

a. 1946
b. 1929
c. 1939
d. 1933

51.He is the first governor of the Central Bank of the Philippines now called Bangko Sentral ng Pilipinas.

a. Dr. Benjamin Diokno

b. Hon. Miguel Cuaderno
c. Jaime C. Laya
d. Alfonso Calalang

52.It exercises the powers and functions of the BSP, such as the conduct of monetary policy and supervision of the financial
system.

a. Monetary and Economic System

b. Currency Management Sector
c. Corporate Services Sector
d. Monetary Board

53.He is the one who disapproved of the monetary law due to its strong opposition from vested interests.

a. President Elpidio Quirino

b. President Franklin D. Roosevelt
c. President Manuel Roxas
d. President Jimmy Carter

54.It is also sometimes referred to as Savings and Loan Associations that specializes in offering savings accounts and originating
home mortgages for consumers.

a. Private Development Bank

b. Savings and Mortgage Bank
c. Rural Bank
d. Thrift Bank

55.It is a type of Thrift bank that is organized for the purpose of accumulating savings deposits and investing them for specified
purposes.
 a. Private development banks
b. Savings banks
c. Stock savings and Loan Association
d. Loan Banks

56.They are referred as the non-bank creditors that make loans to businesses without using an intermediary, such as an
investment bank.

a. Direct Lenders
b. Debtors
c. Issuer
d. Collectors

57.It is a type of Cooperatives with a primary purpose of promoting and undertaking savings and lending services among its
members.

a. Consumers Cooperative
b. Producers Cooperative
c. Marketing Cooperative
d. Credit Cooperative

58.Any enterprise which engages in underwriting of securities of other corporations shall be considered _____________.

a. Investment House
b. Housing Loan
c. Investment
d. Insurance

59.It is a contract in which an insurer indemnifies another against losses from specific contingencies or perils.

a. Insurance
b. Investment
c. Securities
d. Lease contract

60.It is an act that has a section stating that the Philippines Legislature is hereby authorized to provide for the election of
delegates to a constitutional convention.

a. 1944 Philippines Independence Act

b. Republic Act No. 7653
c. Tydings-McDuffie Act of 1934
d. Hare Hawes Cutting Act

61.President Ramos signed this act, which is also known as the New Central Bank Act, into law on June 14, 1993. It established the
Bangko Sentral ng Pilipinas as the country’s independent central monetary authority.

a. Republic Act No. 3591

b. Republic Act No. 9576
c. Republic Act No. 7653
d. Republic Act No. 1993

62.An act that created the Land Bank of the Philippines to finance the acquisition and distribution of agricultural estates for
division and resale to small landholders as well as the purchase of the landholding by the agricultural lessee.

a. Republic Act No. 3844

b. Republic Act N0. 6389
c. Republic Act No. 6657
d. Republic Act No. 7653

63.Statement 1: To engage in a bancassurance arrangement, a bank is required to have equity ownership of the insurance
company.

Statement 2: All bancassurance products, whether life or non-life, are not required to be issued or delivered in the form
previously approved by the Insurance Commission.

a. Only statement 1 is true

b. Only statement 2 is true
c. All statements are true
d. None of the statements is true

64. Statement 1: Fisherman cooperative is one organized by marginalized fishermen in localities whose products are marketed
 either as fresh or processed products

Statement 2: A service cooperative is one organized for the primary purpose of providing medical, dental, and other health
services.

a. Only statement 1 is true

b. Only statement 2 is true
c. All statements are true
d. None of the statements is true

65.It is an Act Amending Presidential Decree no. 129, as amended, otherwise known as “The Investment Houses Law”.

a. Batas Pambansa Bilang 66

b. Batas Pambansa Bilang 99
c. Batas Pambansa Bilang 129
d. Batas Pambansa Bilang 126

66.Statement 1: No director or officer of an Investment House shall concurrently be a director or officer of a bank

Statement 2: No event can a person be authorized to be concurrently an officer of an Investment House and of a bank except
where the majority or all of the equity of the Investment House is owned by a bank.

a. Only statement 1 is true

b. Only statement 2 is true
c. All statements are true
d. None of the statements is true

67.It is a representative of a bank who finds and assist borrowers in acquiring loans. He must have a comprehensive knowledge of
lending products, banking industry rules and regulations, and the required documentation for obtaining a loan.

a. Bank teller
b. Loan Officer
c. Trust Officer
d. Investment Specialist

68.Statement 1: Consolidation is the absorption of one or more corporations by another existing corporation which retains its
identity and take over the rights, privileges, franchise and assumes all liabilities and obligations of the absorbed
corporation(s).

Statement 2: Merger is the union of two or more corporations into a single new corporation.

a. Only statement 1 is true

b. Only statement 2 is true
c. All statements are true
d. None of the statements is true
69.It refers to an Investment Company that invests in both equity and fixed income instruments. The respective investments in
either equity or fixed income shall not be less than thirty five percent (35%) but not more than sixty five percent (65%) of the
NAV of the Investment Company.

a. Equity Fund
b. Feeder Fund
c. Balanced Fund
d. Money Market Fund

70.Republic Act No. 8556 is an act amending Republic Act No. 5980, as amended, otherwise known as the Financing Company Act.
It has a section that says aside from requiring compliance with the provisions of the Corporation Code; the Securities and
Exchange Commission shall not register the articles of incorporation of any financing company unless its office is satisfied
with the evidence submitted to it. In what section can we see this?

a. Sec 6. Form of Organization and Capital Requirements

b. Sec 4. Grant of Authority to Securities and Exchange Commission
c. Sec 7. Requirement for Registration
d. Sec 10 Applicability of Incentives and Exemptions to Financial Leases

71.Statement 1: Bancassurance is the partnership or relationship between a bank and an insurance company whereby the
insurance company uses the bank sales channel in order to sell insurance products.

Statement 2: It is also known as straight-selling, it is defined as the presentation and sale to bank customers by an insurance
company of its insurance products within the premises of the head office of such banks duly licensed by the Bangko Sentral
ng Pilipinas.
 a. Only statement 1 is true
b. Only statement 2 is true
c. All statements are true
d. None of the statements is true

72.Every person pawning or pledging any article or thing with a pawnbroker shall sign his name and give his address to the said
pawnbroker and such name and address shall be made part of the record heretofore described in this section. Where can we
see this statement?

a. Presidential Decree No. 851 Section 2

b. Presidential Decree No. 114 Section 11
c. Presidential Decree No. 442 Article 5
d. Presidential Decree No. 114 Section 13

73.What will happen if the member dies during the pendency of his claim for separation benefit and he has rendered at least 15
years of creditable service?

a. His legal heirs shall be entitled to receive cash payment equivalent to eighteen (18) times the basic monthly pension,
plus accrued BMP, if any, up to the date of death of the member.
b. His legal heirs shall be entitled to receive cash payment equivalent to twenty (20) times the basic monthly pension, plus
accrued BMP, if any, up to the date of death of the member.
c. His legal heirs shall be entitled to cash payment equivalent to one hundred percent (100%) of AMC for each year of
creditable service, but not less than Twelve Thousand Pesos (P12,000.00).
d. His legal heirs shall be entitled to cash payment equivalent to one hundred percent (100%) of AMC for each year of
creditable service, but not less than Twenty-Four Thousand Pesos (P24,000.00).

74.Statement 1: Death Benefit, which is the face value of the policy payable to designated beneficiary/beneficiaries or legal heirs,
in the absence of the former, upon the death of a member

Statement 2: Accidental Death Benefit (ADB) is an additional benefit equivalent to the amount of Death Benefit when the
member dies by accident

a. Only statement 1 is true

b. Only statement 2 is true
c. All statements are true
d. None of the statements is true

75.According to the Bangko Sentral ng Pilipinas Circular No. 854 Series of 2014, how much is the proposed minimum capitalization
of Universal Banks with more than 100 branches?

a. P 800 million
b. P 2.00 million
c. P 15.00 billion
d. P 20.00 billion

76.It is the act or process of guaranteeing the distribution and sale of securities of any kind issued by another corporation.

a. Underwriting
b. Underwriter
c. Security Analysis
d. Merger and Acquisitions Advisory

77.It is the process in which the central bank requests or persuades the commercial banks to comply with the general monetary
policy of the central bank.

a. Selective Credit Control

b. Moral Suasion
c. Rediscounting
d. Open Market Operation

78.Statement 1: The Bangko Sentral is not allowed to buy and sell gold in any form.

Statement 2: The Bangko Sentral may buy and sell foreign notes and coins, and documents and instruments of types
customarily employed for the international transfer of funds.

a. Only statement 1 is true

b. Only statement 2 is true
c. All statements are true
d. None of the statement is true

79. It is a type of commitment of an underwriter where the underwriter fully commits to the offering by buying the entire issue
 and taking financial responsibilities for any unsold shares.

a. All-or-None
b. Best Efforts
c. Firm Commitment
d. None of these

80.Find the simple interest earned for principal of P2,000 at and 8% rate for 5 years.

a. 160
b. 800
c. 80,000
d. 16

81.Find the simple interest earned when the principal is P500 at a rate of 10% held in the bank for 8 months.

a. 33.50
b. 40,000
c. 50
d. 400

82.Find the simple interest paid on a loan of P750 with an 18% rate over 2 years.

a. 135
b. 13,500
c. 270
d. 27,000

83.Find the simple interest paid on a loan of P4,750 at a rate of 19.5% for 30 months.

a. P5
b. P2351.63
c. 27,787.50
d. 926.25

84.Find the simple interest paid on a loan of P1,500 a rate of 19% 15 months.

a. 356.25
b. 427,500
c. 4,275
d. 285

85.Find the simple interest paid on a deposit of P225 at a rate of 1.5% over 2 years.

a. 6.75
b. 3.375
c. 2,278.13
d. 6,750

86.When Loofa was born, her parents put P8,000 into a college fund account that earned 9% simple interest. Find the amount of
interest earned after 18 years.

a. 720
b. 20,960
c. 1,080
d. 12,960

87. After 12 years, a deposit of P10,000 into your college account has earned P6,000 in interest payments. What simple interest
rate did the account earn?

a. 50%
b. 5%
c. 500%
d. 7.5%

88. Kermit took out a 4-year loan for P5,500. He had to pay a total of $1,870 in interest payments. What rate did he pay for his
loan?

a. 85%
b. 5.5%
c. 8.5%
 d. 14%

89.How much interest would you earn if you deposited $575 for 3 months at 2.88% simple interest?

a. $4.14
b. $4,968
c. About $400
d. $1,725

90.The money you borrow or invest is called __________?

a. Simple interest
b. Rate
c. Principal
d. Time

91.The extra money created on the money borrowed is called________?

a. Amount
b. Rate
c. Interest
d. Principal

92.If, Principal = 500

Interest rate = 5%
Time = 5 years
What is the interest earned?

a. 95
b. 105
c. 125
d. 135

93.Emilio borrows P1,200 from a bank at a rate of 8% per year. How much will he have to pay back in total after 2 years?

a. 150
b. 192
c. 1350
d. 1392

94.What does “R” in the simple interest formula stand for?

a. Root
b. Interest
c. Rate
d. Time

95.What does the P in I =PRT mean?

a. Power
b. Principal
c. Product
d. Percent

96.What is the simple interest on a housing loan of P350,000, over 30 years with a rate of 4.5%?

a. 350,00
b. 47,250
c. 350,000
d. 472,500

97.What does the T in I =PRT means?

a. Time
b. Product
c. Temperature
d. Principal

98.What is the interest on a savings account at a rate of 2%, given a starting amount of P575, over 1 years’ time?

a. P115
 b. P586.50
c. P11.50
d. P1.50

99.You take out a car loan. How much will you pay in total for the car, if your loan is for $8000, at a rate of 5% interest, over 3
years?
a. 1,200
b. 120
c. 920
d. 9,200

100. An organizaJon that provides services related to money.

a. Commercial Bank
b. Charter
c. Financial InsJtuJon
d. None of the above

101. Examples of these types of banks are Wells Fargo, Chase, and Regions.

a. FDIC
b. Charter
c. Savings and Loans AssociaJon
d. None of the above

102. An independent agency created by the federal government to protect bank customers by insuring their deposits.

a. Federal Deposit Insurance CorporaJon

b. Financial Depository Insurance Company
c. Financial Department of Insurance CorporaJon
d. None of the above

103. Two types include mutual savings and loan associaJons and stock savings and loans associaJon.

a. Credit Unions
b. Savings and Loans AssociaJon
c. Commercial Banks
d. None of the above

104. A non-profit financial cooperaJve owned by and operated for the benefit of its members; services offered only to its
members.

a. Credit Union
b. Savings and Loans AssociaJon
c. Commercial Bank
d. None of the above

105. The movement of money electronically from one financial insJtuJon to another.

a. Electronic Financial TransiJoning

b. Automated Teller Machine
c. Electronic Funds Transfer
d. None of the above
106. Service offered by most banks and credit unions that requires a Personal IdenJficaJon Number (PIN) to check account
balances, make cash withdrawals and deposits, and move money from one account to another.

a. Electronic Financial TransiJoning

b. Automated Teller Machine
c. Electronic Funds Transfer
d. None of the above

107. It is also called a check card, allows you to make purchases by swiping your card through a point of sale (POS) terminal
that is usually located at the merchant’s checkout counter.

a. Debit Card
b. Credit Card
c. ATM Card
d. None of the above

108. A card issued by a bank that allows the holder to check account balances, withdraw and deposit cash, and transfer money
from one account to another using an ATM.
 a. ATM Card
b. Debit Card
c. Credit Card
d. None of the above

109. A check wriaen for an amount greater than the balance of the account.

a. Overspend
b. Overdraf
c. Fraud
d. None of the above

110. A request for a financial insJtuJon to refuse to honor a check you wrote or a check that has been lost or stolen, as long as
the check has not cleared your account and already been paid.

a. Cashier Check
b. CerJfied Check
c. Stop Payment Order
d. None of the above

111. A special type of check that the bank guarantees to pay; paid with cash withdrawn from your account.

a. Cashier’s Check
b. CerJfied check
c. Stop Payment Order
d. None of the above

112. A personal check that your bank cerJfies is genuine and that there is enough money in your account to cover the check

a. Cashier’s Check
b. CerJfied Check
c. Traveler’s Check
d. None of the above

113. A payment order for a specific amount of money payable to a specific payee; useful for those who do not have checking
accounts to send money safely.

a. Money Order
b. Cashier’s Check
c. Traveler’s Check
d. None of the above

114. A special form of check that funcJons as cash; can be cashed at many places around the world; unused checks can be
redeemed for cash; useful if traveling and do not want to carry large amounts of money.

a. Money Order
b. Traveler’s Check
c. Cashier’s check
d. None of the above

115. Examples of this is CashApp and Paypal

a. Peer to Payment
b. Debit Card
c. Traveler’s Check
d. None of the above

116. It is a wriaen order for the bank to pay a specific amount to a person whom the item is wriaen.

a. Money Order
b. Deposit slip
c. Check
d. None of the above

117. Change 6.5% to a decimal

a. .65
b. 6.5
c. .065
d. .065%
118. Steve deposited $5,000 in a savings account that pays 4% interest compounded annually. Which equaJon could be used
to find the value of the account afer 3 years?

a. A = 5,000(1 + 4)3
b. A = 5,000(1 + 0.04)3
c. A = 5,000(1 + 0.4) x 3
d. A = 5,000(0.04)3

119. The Arnold's took out a loan for a home. The amount was $195,000 at a 4% interest rate compounded annually, how
much will they have paid afer 30 years?

a. $412,489.75
b. $529,586.31
c. $632,462.51
d. $640,891.12

120. Karla invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will
Karla earn in 15 years?

a. $1,584.62
b. $2,651.39
c. $2,706.86
d. $1,825.10

121. Emily would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest
compounded quarterly. If she spent $7,400, how much total will she have paid afer 8 years.

a. $15,415.94
b. $15,683.28
c. $15,927.56
d. $16,109.05

122. Cora invested $400 at a rate of 35% for 8 months, compounded conJnuously. How much is her investment worth afer 8
months?

a. $520.07
b. $505.12
c. $460.11
d. $7,643.74

123. Josh invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually. Which exponenJal
equaJon can be used to find how much money Karla will earn in 15 years?

a. A=1000(1+0.0675/4)^4(15)
b. A=1000(1+0.0675/2)^2(15)
c. A=1000(1+6.75/4)^4(15)
d. A=1000(1+6.75/2)^2(15)

124. Which of the following exponenJal equaJons is the formula for compound interest?

a. y=a(1+r)^t
b. y=a(1-r)^t
c. y=a(b)^r
d. A=P(1+r/n)^nt

125. Deanna won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded
quarterly, how much total will she earn in 10 years?

a. $4915.59
b. $3933.28
c. $2979.81
d. $4005.09

126. Kate borrowed $1,690 for 5 1/2 years at an interest of 5.7% compounded annually. How much extra did she pay by taking
out the loan?

a. $602.45
 b. $2,292.45
c. $1,87.55
d. $3,982.45

127. Jenny invests $7,530 in a savings account with a fixed annual interest rate compounded conJnuously. Afer 8 years, the
balance reaches $12,169.04. What is the interest rate of the account?

a. 4%
b. 5%
c. 6%
d. 7%

128. In the compound interest formula A=P(1+r)t what does the A stand for?

a. The amount of interest

b. The total amount
c. The interest rate
d. The Jme

129. In the compound interest formula A=P(1+r)t what does the P stand for?

a. The Jme
b. The total amount
c. The principal amount (original amount)
d. The interest rate

130. Jacob borrows $500 from Abraham and agrees to have the loan compounded annually for 5 years with an interest rate of
2.5%. How much will the total amount be that Jacob owes?

a. $565.70
b. $262609.38
c. $65.70
d. $630.20

131. Ryan has $1500 in a reJrement account earning 5% interest compounded annually. Afer 5 years how much does Ryan
have in the account?

a. $1750
b. $2010.14
c. $2500
d. $1914.42

132. Henry deposits $750 into a college savings account that is compounded annually when his parents received as a sJmulus
package. If Henry lets the money sit in the account without adding or removing any and receives a 8.5% interest rate, how
much money will he have total afer 5 years?

a. $1127.74
b. $1535.24
c. $2345.67
d. $850.76

133. If you wanted to amount of interest an account has earned afer being compounded annually. What would you have to do
afer you found "A" using the formula A=P(1+r) t ?

a. Add A (total amount) plus P (original amount)

b. Subtract A (total amount from P (original amount)
c. Add P (original amount) plus A (total amount)
d. Subtract P (original amount) from A (total amount)

134. Julia invested $1000 for college in an account earning 5% compounded annually. When she checked the account afer 4
years, how much money did she find in the account?
 a. Not enough
b. $563.24
c. $1215.51
d. $3200.12

135. Trevor wants to have $4000 saved up in 3 years for a car. If he invests $1500 in a savings account that is compounded
annually at an interest rate of 12%, will he have enough money at the end of the 4 years?

a. Yes
b. No

136. Chris borrows $450 from Gavin. Gavin lets Chris choose either a simple interest loan for 10 years with a 3.5% interest rate
or a loan compounded annually for 7 years with a 2% interest rate. Which should Chris choose if he wants the cheaper
plan? Use I=P*r*t for simple interest (make sure to add I plus P at the end) and A=P*(1+r) t for compound interest.
a. The compound interest plan
b. The simple interest plans

137. Daniel invests $360 in a bank account that is compounded annually for 8 years with an interest rate of 5.5%. What will be
the total amount in the account afer the 8 years is over?

a. $625.88
b. $950.12
c. $315.45
d. $552.49

138. Semi-Annually means how many Jmes a year?

a. 4
b. 2
c. 1
d. 6

Prepared by:

JOHN JOSHUA RODRIGUEZ

Subject Instructor