Banking & Investing - A Wise Financial Literacy Review

Question 1

A guarantee one will receive sale price when inventory arrives of sold out items

Accepted Answer

Rain Check

Question 2

Type of endorsement that limits any further negotiation of a check

Accepted Answer

Restrictive Endorsement

Question 3

Comparing one's check registry and bank statement to get them to match is called

Accepted Answer

Reconciling

Question 4

An index that is an indicator of how well the largest companies in the world are doing

Accepted Answer

Dow Jones

Question 5

A small secure storage compartment that can be rented at a bank is called a __

Accepted Answer

Safe Deposit Box

Question 6

An opt in service that allows you to cover withdrawals if you have insufficient funds

Accepted Answer

Overdraft Protection

Question 7

Financial institutions that handle money and operate for a profit

Accepted Answer

Banks

Question 8

Which of the following is NOT one of the three leading credit reporting agencies?

Accepted Answer

Experience

Question 9

An account that is used to trade stocks on the stock exchange

Accepted Answer

Brokerage Accounts

Question 10

Owing more than you own

Accepted Answer

Insolvency

Question 11

The time value of money refers to __

Accepted Answer

The fact that you can use money to make money over time

Question 12

Which of the following is NOT a part of the Federal Reserve

Accepted Answer

FDIC

Question 13

A tool that can be used for managing money and achieving financial goals is called a ___

Accepted Answer

budget

Question 14

Buying goods and services for the purpose of impressing others

Accepted Answer

Conspicuous Consumption

Question 15

Roth IRA's are ___

Accepted Answer

NOT tax deferred

Question 16

When inflation occurs, the fed may attempt to reign it in by __

Accepted Answer

Raising interest rates

Question 17

Common stockholders

Accepted Answer

All are true

Question 18

Advantages of being a member of a credit union include __

Accepted Answer

Low interest loans

Question 19

To add up or grow in value

Accepted Answer

Accrue

Question 20

Type of investment where one lends money to a corp. or govt. for a set period of time & rate

Accepted Answer

Bond

Question 21

An endorsement type that you ONLY make when you are about to deposit the check!

Accepted Answer

Blank Endorsement

Question 22

The term 'bull market' indicates that ...

Accepted Answer

Stock prices are likely to go up

Question 23

An item of value that is pledged as payment of an unpaid debt is called __

Accepted Answer

Collateral

Question 24

The MOST LIQUID type of investment

Accepted Answer

Checking Account

Question 25

Spreading investment dollars among different sectors to reduce the level of risk

Accepted Answer

diversifying

Question 26

A fee that someone pays to be able to borrow money

Accepted Answer

Interest

Question 27

Divide ___ by the interest rate to determine how fast you can double your money in an investment

Accepted Answer

72

Question 28

Percentage of deposits that banks are required to keep on hand in case of a 'bank run'

Accepted Answer

Required Reserve Ratio

Question 29

Lack of money in an account to pay a payment

Accepted Answer

Non-sufficient Funds

Question 30

Distribution of the after-tax earnings of a corp. given to a company's shareholders are ___

Accepted Answer

dividends

Question 31

Taxed deferred means

Accepted Answer

Taxed at a later date

Question 32

A check that has been written but not yet received and paid by the bank

Accepted Answer

Outstanding Check

Question 33

AKA a 'time deposit' - $ given to bank for a set time at set rate

Accepted Answer

Both CD and Certificate of Deposit

Question 34

The world's first electronic stock market

Accepted Answer

NASDAQ

Question 35

Something you own that increases in value over time

Accepted Answer

Appreciating Assets

Banking & Investing - A Wise Financial Literacy Review

Questions 35

Banking & Investing - A Wise Financial Literacy Review

Questions 35