Budget, Savings, Banking Review

Question 1

Money paid to the depositor by the bank to use the depositor's money is:

Accepted Answer

Interest

Question 2

When opening an account, the initial deposit is:

Accepted Answer

Principal

Question 3

The initials IRA stand for:

Accepted Answer

Individual Retirement Account

Question 4

All banks have the same requirements for opening a checking account – principal, minimum balance, etc.

Accepted Answer

False

Question 5

TF Credit unions are a for profit business.

Accepted Answer

False

Question 6

Where can a money order be purchased?

Accepted Answer

All of those mentioned

Question 7

Which of the following is NOT a fixed expense?

Accepted Answer

Clothing

Question 8

Why was the Federal Reserve created?

Accepted Answer

To prevent banking panics.

Question 9

T/F When zero-based budgeting, every penny must be allocated into an expense.

Accepted Answer

True

Question 10

The type of account that can best serve those who can maintain a high balance is:

Accepted Answer

Money market

Question 11

According to Mrs. Walsh, savings is a fixed expense.

Accepted Answer

True

Question 12

When using EFT, you are creating an electronic record of your transaction.

Accepted Answer

True

Question 13

An orderly program for spending, saving, and investing the money you earn is a:

Accepted Answer

Financial plan

Question 14

Things that you hope to accomplish within the next year or two are:

Accepted Answer

Short-term goals

Question 15

T/F The purpose of a short term goal is planning and saving so you don&#x27;t have to borrow money.

Accepted Answer

False

Question 16

T/F Your monthly car payment is a variable expense.

Accepted Answer

False

Question 17

When buying a mutual fund, the investor gets to pick the stocks in the mutual fund.

Accepted Answer

False

Question 18

A personal check which the bank guarantees to be good is:

Accepted Answer

Certified check

Question 19

Used to send money in mail when one doesn&#x27;t have a checking/bank account .

Accepted Answer

money order

Question 20

How much does the FDIC insure an account for?

Accepted Answer

$250,000

Question 21

Which level of compound interest would give the greatest return?

Accepted Answer

Daily

Question 22

T or F Short term goals always involve money management.

Accepted Answer

False

Question 23

An IRA:

Accepted Answer

All of the above

Question 24

T/F A check which has been cleared by the bank cannot bounce (insufficient funds).

Accepted Answer

True

Question 25

These goals have a major impact on your life.

Accepted Answer

Long-term

Question 26

T/F Groceries is a fixed expense.

Accepted Answer

False

Question 27

The process of matching your checkbook register with your bank statement is:

Accepted Answer

Reconciling

Question 28

T/F The deposit slip is signed every time it is used.

Accepted Answer

False

Question 29

An organized plan whereby you match your expected income to expected expenses.

Accepted Answer

Budget

Question 30

T/F Service charges are added to the balance of your account each month.

Accepted Answer

False

Question 31

T/F Interest is always paid on an interest bearing checking account.

Accepted Answer

False

Question 32

Expenses that remain constant.

Accepted Answer

Fixed expenses

Question 33

A check that is written by a bank on its own funds is:

Accepted Answer

Cashier's check

Question 34

Expenses that change according to needs and short-term goals are...

Accepted Answer

Variable expenses

Question 35

What do the initials FDIC stand for?

Accepted Answer

Federal deposit insurance corporation

Question 36

Money you have to spend after taxes is:

Accepted Answer

Disposable income

Question 37

A bank's main source of income is:

Accepted Answer

Interest charged on loans

Question 38

PYF stands for:

Accepted Answer

Pay yourself first

Budget, Savings, Banking Review

Questions 38

Budget, Savings, Banking Review

Questions 38