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

Question 1

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

Accepted Answer

Bank Reconciliation

Question 2

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

Accepted Answer

Endorsement

Question 3

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

Accepted Answer

Bounced

Question 4

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

Accepted Answer

$50 - $100

Question 5

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 6

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

Accepted Answer

True

Question 7

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

Accepted Answer

Family Photo

Question 8

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

Accepted Answer

Full Service Bank

Question 9

A financial institution that operates for profit is known as a

Accepted Answer

Commercial Bank

Question 10

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

Accepted Answer

Restrictive Endorsement

Question 11

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

Accepted Answer

Home Loan, Car Loan

Question 12

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 13

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

Accepted Answer

Money Market Account

Question 14

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

Accepted Answer

Blank Endorsement

Question 15

Which of the following is a variable expense?

Accepted Answer

utility bill, grocery bill

Question 16

What does FDIC stand for?

Accepted Answer

Federal Deposit Insurance Coporation

Question 17

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

Accepted Answer

Canceled Check

Question 18

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

Accepted Answer

Variable Expenses

Question 19

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

Accepted Answer

Budget

Question 20

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

Accepted Answer

Memo Line

Question 21

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

Accepted Answer

No privacy

Question 22

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

Accepted Answer

True

Question 23

A request for a bank to not honor a specific check.

Accepted Answer

Stop Payment Order

Question 24

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

Accepted Answer

Financial Plan

Question 25

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

Accepted Answer

Credit Union

Question 26

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

Accepted Answer

False

Question 27

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

Accepted Answer

Comparison Shopping

Question 28

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

Accepted Answer

Special Endorsement

Question 29

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

Accepted Answer

True

Question 30

The Central Bank of the United States is the

Accepted Answer

Federal Reserve

Question 31

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

Accepted Answer

$250,000

Question 32

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

Accepted Answer

Commercial Bank

Question 33

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

Accepted Answer

fixed expenses

Question 34

A booklet used to record checking account transactions.

Accepted Answer

Checkbook Register

Question 35

A person who cashes a check.

Accepted Answer

Payee

Question 36

Which of the following would be considered an asset?

Accepted Answer

Checking Account

Question 37

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

Accepted Answer

Check

Question 38

A check written for more money than your account holds.

Accepted Answer

Overdraft, Hot

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

Questions 38

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

Questions 38