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Financial Literacy Flashcards | StudBud
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Financial Literacy
Financial Literacy
48 terms
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Tied to a personal finance unit
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1
A Payee on a check is the person who
the check was signed by.
the bank who holds the account.
the check is written to.
2
What is #10 called?
The Check Number
The Routing Number
The Checking Account Number
The Date
3
What does the acronym P.I.N. mean?
Precise Ingenuity Number
Personal Identity Number
Personal Identification Number
Precedent Integer Number
4
What does liquidity mean in finances?
The ease at which a security or asset can be converted to cash
Assets, like land, stock, Certificate of Deposits, Mutual Funds, Bonds
A lot of money easily available
A liquid that flows freely but is of consistant volume
5
What does it mean to negotiate a check?
A deal made between the Payor and a representative of a bank
To make sure there is overdraft protection
To cash out or transfer the check over by endorsing it
A deal made between the Payor and Payee
6
What might you need to open a savings account?
The routing number to a checking account
Minimum opening deposit
Identification
Your previous year's tax returns (or your parents')
7
What goes on the memo line when writing a check to pay a bill?
Why you are writing the check; account number aligned with the company
Phone Number
Check Number
A Positive Affirmation
8
Your signature should match the signature your bank has on file at the time you opened your account
False
True
9
What is #9 called?
The Routing Number
The Bank ID Number
The Account Number
The Check Number
10
Which is NOT a typical goal for a savings account?
To create an emergency fund
To buy groceries for this week
To pay for higher education
To save for a new car
11
Which account earns higher interest rates, Checking or Savings?
Neither
Savings
Checking
They are the same
12
Certificate of Deposit (CD)
Investment that earns interest over a specific time
A small disk that spins around and plays audio
One of those slips that you write to keep track of deposits
A disk?
13
What should you do if you make a little mistake on a check?
Cross through the mistake, initial above, and continue on
Continue, just write out the right amount on the legal line
Crinkle the check up and throw it away
Use white out
14
What is a P.I.N.?
A short high-pitched ringing sound
A secure numeric/alphanumeric string used to conduct financial transactions
A way to secure financial documents
A sharp metal-like projection
15
What are the three types of ways you can save?
Bonds, Stock Investments, Mutual Funds
Bonds, Mutual Funds, and Certificate of Deposit
Savings Account, Mutual Funds, and Certificate of Deposit
Money Market (MM) Account, Certificate of Deposit (CD), & Savings Account
16
What line is the most important line the bank representative will look at when cashing a check?
The Legal Line
The Signature
The Numeric Amount
The Payee Information
17
What should you do if you make a BIG mistake when writing a check?
Write the word VOID across the check and start over
Use white out and fix the mistake
Crumble it up and throw it away
Just scratch out the error and initial above it
18
Certificate of deposit has the most predictable income.
True
False
19
Writing a check for more than what's in your checking account will usually lead to ___________.
wealth and power
bankruptcy
an overdraw fee
an overdraft fee
20
In order to get a Certificate of Deposit, you must agree to:
Pay a penalty if you withdraw your money early
All of the above
Hold your money in the bank for a fixed period of time
Put a certain amount of money into the bank
21
This is a correctly written check
True
False
22
A money market account is
You can deposit money but there are limited amounts of monthly withdrawals
A way to save money and earn higher interest than a savings account
A hybrid of a savings and checking account. Often comes with a debit card.
Interest is determined based on the rates of other market accounts
23
bouncing a check means...
Measuring the elasticity of the check when it falls to the floor
You have the available funds
NSF - Non-sufficient funds
There are not enough funds in checking, so it is BOUNCED over to savings
24
A benefit of a Certificate of Deposit is?
All the Above
No fees, unless you withdrawal money early
Higher interest
No risk
25
Which of the following can be used to deduct funds automatically from a checking account?
Personal Check
Credit Card
Debit Card
Gift Card
26
A Money Market Account and a Certificate of Deposit account are the same thing.
True
False
27
A _______ ________ is used llike a credit card, but it is associated with a checking account
Debit Card
Membership Card
Gift Card
Credit Card
28
What is the difference between a credit union and a bank?
Credit unions have lower fees & better rates, but banks have more services
Similar services; credit union is nonprofit and banks are for profit.
Credit unions operate on credit
They are both similar, just one is local and the other national.
29
What are the numbers in the bottom left-hand side of the check?
The Routing Number, Account Number, and Check Number
The Bank's FDIC Number, Account Number, Check Number
The Check Number, Account Number, and Routing Number
The Bank's FDIC Number, Account Number, Date
30
This is a correctly written check
True
False
31
Money Markets are:
Markets for trading securities for cash
Markets for long-term money
Markets for trading money
Markets for short-term money
32
What is another word for balancing an account?
Equity
Negotiate
Reconcile
Overdraft
33
Saving accounts differ from checking accounts in that...
Saving accounts come with more fees than checking accounts
Money in a saving account can be used to fund a bank's loans
Checking accounts offer higher interest rates
Saving accounts let you withdraw $ an unlimited # of times
34
Endorsing a check means to
Cash It
Campaign
Sign it
Back it with money
35
Define A Savings Account.
An account for depositing money that you want to keep.
An account into which you deposit money, and take money by means of checks.
This account will help you find an error in your checking account.
An account only reachable by means of a cellular device.
36
What is the MICR Line?
Line of characters printed w/ a unique ink that is read and processed
The bank information that the check is drawn on
The routing number
The invisible line connecting the numbers on the bottom left of the check
37
The benefits of a savings account are...
Earns a higher interest rate than other savings options
Short term money management
Ensures you will have enough for retirement
Earns a little interest; protected; overdraft protection; liquid; ER
38
Where is the check number located
Top right
bottom left
top left
bottom center-right after the account number
39
All of the following are types of endorsements except
Restrictive
Sealed
Special
Blank
40
What does M.I.C.R. mean?
Microchip
Magnetic Ink Character Recognition
Minute Integer Character Recal
Microchip Integer Code Reader
41
When writing a check, always include your__________.
The Numeric Amount, and the Amount in Words
The Payee Information
First & Last Name Signed in Cursive
Account Number of Bill Being Paid if Applicable in the Memo Line
42
Which of these is a benefit of having a checking account? Select all that apply.
Lower taxes
Better money management
You can pay for things over time instead of all at once
You can save money paying bills by check or online
43
Which of the following is false about special endorsements?
In the above picture, Michael Delgado is the new owner
Original owner of check signs under the new owner of check
Indicates a new owner of the check
Is sometimes known as an endorsement in full
44
A debit card is connected to your checking account. (False or True)
True
False
45
What is a checking account?
A bank account that is only used incase of emergencies
A bank account where checks are written to pay expenses.
A bank account that you ONLY use to purchase food
A bank account you never use
46
When writing a check, the numeric amount should match the written amount.
False
True
47
What is the total amount of money in my account?
Deposit
Balance
Transaction
Money
48
Which of the following about blank endorsements is false?
Consists of only the endorser's signature
Is it common for the endorser to endorse the check at the bank
The check is not transferring ownership to Michael Delgado
Anyone is possession of this endorsed check can cash it
