Financial Literacy - Unit 5: Budgeting, Banking, and Protecting Personal Identity

Question 1

A type of endorsement that only includes the signature of the payee on the back of the check.

Accepted Answer

Blank Endorsement

Question 2

Which of the following is a disadvantage for opening a Certificate of Deposit?

Accepted Answer

investment is locked in for a specific amount of time

Question 3

The process of matching your checkbook register with the bank statement each month.

Accepted Answer

Bank Reconciliation

Question 4

Which of the following would be an example of a liability/debt?

Accepted Answer

Car Loan, Home Loan

Question 5

Customers must be a member of a bank to benefit from products and services offered.

Accepted Answer

False

Question 6

Costs that do not change from month to month are called:

Accepted Answer

fixed expenses

Question 7

A check that has the bank's stamp showing it has cleared through the banking system.

Accepted Answer

Canceled Check

Question 8

A signature or statement on the back of a check giving a financial institution authorization.

Accepted Answer

Endorsement

Question 9

A type of endorsement that limits the transfer of the check to a particular person.

Accepted Answer

Special Endorsement

Question 10

What does FDIC stand for?

Accepted Answer

Federal Deposit Insurance Corporation

Question 11

Which part of a check provides a place for you to write the purpose of the check?

Accepted Answer

Memo Line

Question 12

Which of the following is a disadvantage of having a joint checking account?

Accepted Answer

Individuals may feel as if they do not have their own money

Question 13

A financial institution that operates for profit is known as a

Accepted Answer

Commercial Bank

Question 14

Commercial Banks operate for profit, by charging various fees to customers.

Accepted Answer

True

Question 15

A booklet used to record checking account transactions.

Accepted Answer

Checkbook Register

Question 16

Which of the following would be considered an asset?

Accepted Answer

Checking Account

Question 17

A person who cashes a check.

Accepted Answer

Payee

Question 18

Which of the following would not be accepted by a financial institution when opening accounts?

Accepted Answer

Family Photo

Question 19

Which of the following is a variable expense?

Accepted Answer

grocery bill, utility bill

Question 20

A bank that offers every type of service (accounts, credit cards, safe deposit boxes, loans).

Accepted Answer

Full Service Bank

Question 21

A financial institution that provides lower rates on loans and higher rates on investments.

Accepted Answer

Credit Union

Question 22

A financial institution that offers a wide variety of banking services is a

Accepted Answer

Commercial Bank

Question 23

A check written for more money than your account holds.

Accepted Answer

Hot, Overdraft

Question 24

When a check is returned to the payee's bank due to insufficient funds, the check has:

Accepted Answer

Bounced

Question 25

Accounts are protected by the FDIC for an amount up to a total of

Accepted Answer

$250,000

Question 26

Most banks require a minimum opening balance of __________ when you open an account.

Accepted Answer

$50 - $100

Question 27

All of the following are pros for having a joint checking account except:

Accepted Answer

No privacy

Question 28

A shopping method that enables consumers to determine the best prices/quality of products.

Accepted Answer

Comparison Shopping

Question 29

The Federal Reserve offers FDIC coverage of up to $250,000 for customers of banks.

Accepted Answer

True

Question 30

A spending and savings plan based on your expected income and fixed/variable expenses.

Accepted Answer

Budget

Question 31

A written order to a bank to pay a person/business a stated amount.

Accepted Answer

Check

Question 32

A certificate of deposit is considered to be a safe investment.

Accepted Answer

True

Question 33

The type of account that offers higher interest than a savings and limited check writing is a

Accepted Answer

Money Market Account

Question 34

A set of goals for spending, saving, and investing money you receive.

Accepted Answer

Financial Plan

Question 35

Expenses that change in amount and type, depending on the choices a person makes.

Accepted Answer

Variable Expenses

Question 36

The Central Bank of the United States is the

Accepted Answer

Federal Reserve

Question 37

A type of endorsement that limits further negotiating of the check. Ex. "For Deposit Only"

Accepted Answer

Restrictive Endorsement

Financial Literacy - Unit 5: Budgeting, Banking, and Protecting Personal Identity

Questions 37

Financial Literacy - Unit 5: Budgeting, Banking, and Protecting Personal Identity

Questions 37