stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Financial Literacy Flashcards | StudBud
Explore
/
Financial Literacy
Financial Literacy
48 terms
·
StudBud Administration
·
1,860 plays
Tied to a personal finance unit
Flashcards
48 cards
F
Practice quiz
P
Host live
L
Questions
48
Answers
1
What is another word for balancing an account?
Overdraft
Negotiate
Reconcile
Equity
2
What line is the most important line the bank representative will look at when cashing a check?
The Numeric Amount
The Signature
The Payee Information
The Legal Line
3
Which of these is a benefit of having a checking account? Select all that apply.
Lower taxes
You can pay for things over time instead of all at once
Better money management
You can save money paying bills by check or online
4
What might you need to open a savings account?
The routing number to a checking account
Identification
Your previous year's tax returns (or your parents')
Minimum opening deposit
5
What does liquidity mean in finances?
A liquid that flows freely but is of consistant volume
A lot of money easily available
The ease at which a security or asset can be converted to cash
Assets, like land, stock, Certificate of Deposits, Mutual Funds, Bonds
6
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
A Positive Affirmation
Check Number
Phone Number
7
In order to get a Certificate of Deposit, you must agree to:
Hold your money in the bank for a fixed period of time
Put a certain amount of money into the bank
Pay a penalty if you withdraw your money early
All of the above
8
What is the total amount of money in my account?
Money
Deposit
Transaction
Balance
9
What is a P.I.N.?
A way to secure financial documents
A sharp metal-like projection
A secure numeric/alphanumeric string used to conduct financial transactions
A short high-pitched ringing sound
10
What does M.I.C.R. mean?
Microchip
Minute Integer Character Recal
Microchip Integer Code Reader
Magnetic Ink Character Recognition
11
Certificate of deposit has the most predictable income.
False
True
12
bouncing a check means...
Measuring the elasticity of the check when it falls to the floor
NSF - Non-sufficient funds
There are not enough funds in checking, so it is BOUNCED over to savings
You have the available funds
13
This is a correctly written check
False
True
14
Your signature should match the signature your bank has on file at the time you opened your account
False
True
15
A Money Market Account and a Certificate of Deposit account are the same thing.
False
True
16
Which account earns higher interest rates, Checking or Savings?
Savings
They are the same
Neither
Checking
17
A debit card is connected to your checking account. (False or True)
True
False
18
What are the three types of ways you can save?
Bonds, Stock Investments, Mutual Funds
Bonds, Mutual Funds, and Certificate of Deposit
Money Market (MM) Account, Certificate of Deposit (CD), & Savings Account
Savings Account, Mutual Funds, and Certificate of Deposit
19
Which of the following about blank endorsements is false?
The check is not transferring ownership to Michael Delgado
Consists of only the endorser's signature
Anyone is possession of this endorsed check can cash it
Is it common for the endorser to endorse the check at the bank
20
All of the following are types of endorsements except
Sealed
Blank
Restrictive
Special
21
What is #10 called?
The Date
The Check Number
The Routing Number
The Checking Account Number
22
When writing a check, the numeric amount should match the written amount.
True
False
23
What are the numbers in the bottom left-hand side of the check?
The Bank's FDIC Number, Account Number, Date
The Bank's FDIC Number, Account Number, Check Number
The Check Number, Account Number, and Routing Number
The Routing Number, Account Number, and Check Number
24
What is a checking account?
A bank account that you ONLY use to purchase food
A bank account that is only used incase of emergencies
A bank account you never use
A bank account where checks are written to pay expenses.
25
What should you do if you make a BIG mistake when writing a check?
Just scratch out the error and initial above it
Use white out and fix the mistake
Write the word VOID across the check and start over
Crumble it up and throw it away
26
Certificate of Deposit (CD)
Investment that earns interest over a specific time
A small disk that spins around and plays audio
A disk?
One of those slips that you write to keep track of deposits
27
What does the acronym P.I.N. mean?
Personal Identity Number
Precedent Integer Number
Precise Ingenuity Number
Personal Identification Number
28
A benefit of a Certificate of Deposit is?
Higher interest
No fees, unless you withdrawal money early
All the Above
No risk
29
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.
30
Which of the following is false about special endorsements?
Original owner of check signs under the new owner of check
In the above picture, Michael Delgado is the new owner
Is sometimes known as an endorsement in full
Indicates a new owner of the check
31
Money Markets are:
Markets for trading money
Markets for long-term money
Markets for short-term money
Markets for trading securities for cash
32
A _______ ________ is used llike a credit card, but it is associated with a checking account
Credit Card
Gift Card
Debit Card
Membership Card
33
Writing a check for more than what's in your checking account will usually lead to ___________.
an overdraw fee
wealth and power
an overdraft fee
bankruptcy
34
Endorsing a check means to
Sign it
Cash It
Campaign
Back it with money
35
What should you do if you make a little mistake on a check?
Crinkle the check up and throw it away
Use white out
Continue, just write out the right amount on the legal line
Cross through the mistake, initial above, and continue on
36
When writing a check, always include your__________.
The Payee Information
The Numeric Amount, and the Amount in Words
First & Last Name Signed in Cursive
Account Number of Bill Being Paid if Applicable in the Memo Line
37
The benefits of a savings account are...
Short term money management
Earns a higher interest rate than other savings options
Earns a little interest; protected; overdraft protection; liquid; ER
Ensures you will have enough for retirement
38
What does it mean to negotiate a check?
A deal made between the Payor and a representative of a bank
A deal made between the Payor and Payee
To cash out or transfer the check over by endorsing it
To make sure there is overdraft protection
39
Define A Savings Account.
This account will help you find an error in your checking account.
An account into which you deposit money, and take money by means of checks.
An account only reachable by means of a cellular device.
An account for depositing money that you want to keep.
40
Which of the following can be used to deduct funds automatically from a checking account?
Gift Card
Debit Card
Credit Card
Personal Check
41
What is the difference between a credit union and a bank?
Credit unions have lower fees & better rates, but banks have more services
Credit unions operate on credit
Similar services; credit union is nonprofit and banks are for profit.
They are both similar, just one is local and the other national.
42
Where is the check number located
bottom left
bottom center-right after the account number
Top right
top left
43
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
Interest is determined based on the rates of other market accounts
A hybrid of a savings and checking account. Often comes with a debit card.
44
This is a correctly written check
True
False
45
Saving accounts differ from checking accounts in that...
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
Saving accounts come with more fees than checking accounts
46
What is #9 called?
The Bank ID Number
The Routing Number
The Account Number
The Check Number
47
What is the MICR Line?
The bank information that the check is drawn on
The invisible line connecting the numbers on the bottom left of the check
The routing number
Line of characters printed w/ a unique ink that is read and processed
48
Which is NOT a typical goal for a savings account?
To save for a new car
To buy groceries for this week
To pay for higher education
To create an emergency fund
