1st Quarter Assessment: Financial Math

Front

What information is required to be included on a check when writing it?

Back

Date, payee name, amount in numbers and words, signature, and memo line.

Front

What is FDIC Insurance?

Back

Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business.

Front

Which statement about bank accounts is NOT true?

Back

Historically, savings accounts earn higher returns than investments in the stock market.

Front

What is the "sunk cost fallacy"?

Back

The tendency to invest more in a project based on previous investments.

Front

What should you do if you make a mistake while writing a check?

Back

Write 'void' on the check then tear up the check and start over.

Front

What is the purpose of a memo line on a check?

Back

To provide a note or reason for the payment.

Front

What does it mean for a bank to be FDIC-insured?

Back

It means that the bank's deposits are protected by the Federal Deposit Insurance Corporation up to $250,000.

Front

What is the difference between a checking account and a savings account?

Back

A checking account is used for daily transactions, while a savings account is intended for saving money and earning interest.

Front

What is the significance of the date on a check?

Back

It indicates when the check was written and can affect its validity.

Front

What is a payee in the context of a check?

Back

The person or entity to whom the check is written and who will receive the payment.