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FP1 Review Exam Questions with Fully Detailed Answers
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FP1 Review Exam Questions with Fully Detailed Answers
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FP1 Review Exam Questions withFully Detailed Answers
Brian recently got his first part-time job as a food bagger at a local grocery
store. He needs a safe place to store his income that allows him to withdraw
money easily and frequently. Brian should consider opening which type of
account? - -checking
- The direction of a client's cash and securities by a financial services
company, usually an investment bank, or an individual is known as - -asset
management
- What type of service does a bank provide to a business that needs to
borrow funds for a short period of time? - -line of credit
- Proofing, encoding, capturing, and sorting are all steps in which banking
process? - -check payment
- What type of service might a bank provide a business that needs the
flexibility to borrow different amounts of money at different times without
having to reapply? - -line of credit
- A service that a bank provides to a company for the receipt of customers'
payments, which are directed to a special post office box instead of directly
to the company, is referred to as a/an - -lockbox
- Which type of protection ensures that a check, ATM, wire transfer, or debit
card transaction will clear if the account balance falls below zero? - -
overdraft
- The electronic clearance and settlement system used for financial
transactions by U.S. commercial banks and other institutions is called the - -
automated clearing house (ACH)
- Investors take a risk for the potential of receiving a - -return
- Which is an advantage of a money market account over a savings
account? - -One can often write checks from a money market account
- The purpose of the risk pyramid is to show a comparison of - -one
investment to another
- Ownership investments are ideal for investors who are - -risk-tolerant
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