A program that allows students to enhance classroom learning
with part-time work is ______.
cooperative education
When calculating interest, one must know ________.
principal, annual interest rate, time
In most cases, the loss of a reported credit
card within two days may result in a maximum charge of __ for unauthorized use.
$50
Long-term financing usually results in ________.
smaller payments, higher interest
A company issuing credit with a line of credit
states a ________.
maximum amount of money available
Many financial advisors suggest ________ .
diversification to lessen risk
Profits that are reinvested in a company are defined as
________.
retained earnings
In the financial world, “risk” indicates ________.
one cannot be certain about the outcome of an investment
An official document transferring ownership from seller to
buyer is ________.
a deed
Most financial experts recommend a savings ratio
of ________.
at least 10 percent
Take-home pay may also be classified as ________.
net pay
A legal option for consumers in trying to settle
a minor dispute is ________.
small claims court
The formula for calculating net worth is ________.
subtract liabilities from assets
The FDIC and SAIF insures deposits
up to a limit of ________.
$100,000 per account
Types of risks to home and vehicles fall in the
category of ________.
damage to property or
responsibility for injuries
A medical assistance program
offered to certain low-income individuals and families is ________.
Medicaid
Most medical insurance plans
require employees to pay a portion of health care costs, called a ____.
deductible
A form used to assist in recording payroll
deductions is ________.
W-4
Interest income is earned from
________.
dividends and interest
An estate tax is collected on the value
of a person’s property and is a ________.
federal tax at time of death
Deadlines and penalties apply for
filing income tax returns ________.
each year by April 15th
The most common method of dealing with risk is
to shift it to ________.
an insurance company
The federal government sells bonds
and other securities to help fund ________.
regular activities and to finance the national
debt
Blue-chip stocks generally attract ________.
conservative investors for safety
Social Security provides benefits to ________.
retirees, survivors, and disabled
persons
An Employer Identification Number
is ________.
assigned by the IRS and used for
income tax purposes
Stocks listed on the Dow Jones
averages typically are ________.
large cap stocks
An outstanding check is
a check that has been written but not yet
cleared the bank
One disadvantage of having money in a certificate of deposit (CD) versus a savings
account is
the money in a CD can only be accessed at
certain times without penalty
When an interest rate changes at different times during the term of the loan, it is
called
variable rate
An endorsement that signs a check over to a specific person is a
special endorsement
An order drawn by one bank on its deposits in another bank to pay a third party is
called a
bank draft
A petty cash fund is used to pay for all expenses.
False
A 12-month period used for financial accounting purposes is called
fiscal year
The second quarter in a year would consist of the months
April – June
When reconciling your checkbook, the bank service charge should be subtracted from the check register balance in order to balance with the bank.
true
If a person’s gross pay is $200 weekly; has $44.00 Federal and State Income Tax, $2.22 City Tax, $2.50 insurance, what will this person have in the check as take-home pay?
$151.28
Simple interest is computed only on the principal.
true
The greatest disadvantage of using credit cards is
being tempted to overspend
An ____________ consists of everything a person owns.
estate
A formal written statement of expected income and expenses for a business during a future period of time is called a(n) _______________.
budget
Which agency protects the money that you have invested in a bank?
FDIC
_____________ gives the owner the advantage of
receiving cash dividends before common stockholders receive any.
preferred stock
Stock in a company provides the stockholder with
regular income when the company
pays dividends
To speak effectively, you
should express ideas clearly
Enunciation means
pronouncing words clearly
If you have a balance of $623.14 in your
checkbook as of June 1 and you write two checks in the amount of $507.65 and
make a deposit of $1213.50, what will your ending balance be?
$1,328.99
When
choosing a credit card company, you should consider all of the following
except:
choices of card designs
The signature card is the bank’s record of a
customer’s signature.
True
The maximum balance you can have on a charge
account is your
credit limit
On a proof of cash report, if cash received
according to the cashier’s count is $1,426.06 and cash received according to
the detailed audit strip is $1,462.06, then cash is
short
Saving for vacation next summer or paying off
small debts are examples of
short-term goals
The first step in planning a budget is
setting financial goals
Compared with commercial banks, credit unions
generally offer
lower fees and loan rates
After a company fails, who has first rights to
its remaining assets?
preferred stockholders
A legal form that asks stockholders to transfer their voting rights is called a
proxy
Better Business Bureaus handle
complaints against local merchants
What amount of interest would you earn in one year if the simple interest rate on $12,000 were 7.75%?
$930
A bank statement contains all of the following
information except
is: beginning balance, service charge, checks paid
not: deposits in transit
Which of the following Acts protect you against discrimination?
Equal Credit Opportunity Act
Cosigning a loan requires the cosigner to
be responsible for the entire balance of the
loan
A savings certificate for a specific amount of money for a specific amount of time with a specific rate of interest is a
certificate of deposit
A check drawn on the bank that issues it,
payable to the person designated by the purchaser of the check is a
cashier's check
Knowingly passing bad checks which is a serious
crime that can result in a fine, imprisonment, or both, is referred to as a(n)
felony
An endorsement that limits the use of a check to
the purpose given in the endorsement is called a
restrictive endorsement
When determining credit, which of the following
criteria is not used?
conformity
If a husband and wife each have an individually
owned account plus a joint account held in both names, the amount of FDIC
protection they carry would be
$300,000
If you make a mistake when writing a check, you
should
write "VOID" across the face of the
check and save the check for filing with your monthly statement
FDIC protection only covers losses sustained by
depositors through the closing of an insured bank.
true
Keogh and Individual Retirement Accounts were
originally designed for persons without retirement plans
true
By placing funds in a checking and savings
account in the same bank, a customer may increase the FDIC protection per
amount.
false
What defines payment of a debt by equal or
periodic payments?
installment
The place which sorts checks from different parts
of the country and sends them to the banks on which they are DRAWN is called
the
Federal Reserve bank
The passing of the Federal Reserve Act in 1913
created the Federal Reserve System.
true
A check is simply an order to the bank to pay a
specified amount of money to a person or company named on the item
true
The interest rate charged to the bank's most
creditworthy customers is called the
prime rate
Funds that can be withdrawn at any time are
called
demand deposits
Which of the following would be considered the
safest (most secure) short-term investment?
treasury bills
Credit, debit, or other types of cards that have embedded microchips are called:
smart cards
A company issuing credit with a line of credit
states a ________.
maximum amount of money available
A check stub and a check register are used for
the same purpose.
true
The major types of banking institutions are
commercial banks, credit unions, savings and loan associations
Which of the following is a compelling cause for
concern by financial institutions and consumers?
internet identity theft, phishing, on-line financial fraud
Commercial paper is a short-term note or draft
issued by a corporation or government and is considered:
a common investment instrument
Consumers who inform themselves about credit
costs and use credit wisely may avoid:
bankruptcy, ruined credit, paying high interest rates on loans
On June 30th, Julia Andrews deposited $452 in a
savings account at First Commercial Savings and Loan Association. At the end of December her interest was computed at an annual interest rate of 3.5 percent. How much simple interest did her money earn?
$7.91
A personal line of credit allows a customer to
write himself a loan by writing a check.
true
What is generally maintained in the vault of the
bank?
safe deposit boxes
An agreement which allows a customer to pay a
bill to a company without writing a check is called a/an
pre-authorized payment
Which of the following can be used as security
for a loan?
A.accounts receivable
B. stock
C. real estate
D. all of the above
D- all of the above
A preset amount of loan money available on
demand is called
line of credit
Which of the following instruments are
negotiable?
bank draft, cashier's check, certified check
Calculate the yearly interest rate on a credit
card that charges 1 3/4 % monthly interest rate.
21%
You are hired as a car washer who earns $6.50
per hour. You work Tuesday-Saturday, 9-6
with one hour for lunch. Find the gross
weekly pay for the job, note lunch time is unpaid.
$260
A store in Reno, Nevada, advertised a 50” HD
Plasma TV for $1,699.97. What is the
sales tax if the combined state and city rate is 6%?
$102
Your company has $10,000 to invest for a 2-year
period. You purchase a 6% CD with
interest compounded annually. How much
is the CD worth at maturity?
$11,236
Collateral is an intangible asset pledged by a
borrower as security for repayment of the loan.
false
A person who owes payment or other performance under
a security agreement is called the:
debtor
This type of check is guaranteed payment by a
bank
cashier
This is a form instructing the bank not to pay a
check
