2.5 Checking & Savings REVIEW

Front

What is the purpose of a check endorsement?

Back

To authorize the transfer of funds from the check writer's account to the check holder's account.

Front

Where does the payee sign a check?

Back

On the back of the check.

Front

How do you calculate the periodic interest rate?

Back

Divide the annual interest rate by the number of periods.

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal x Rate x Time.

Front

What does FDIC stand for?

Back

Federal Deposit Insurance Corporation.

Front

Which type of account is typically not FDIC insured?

Back

Savings Bond.

Front

What is a Full endorsement on a check?

Back

An endorsement where the payee signs the check and instructs it to be paid to someone else.

Front

What is a Blank endorsement?

Back

An endorsement where the payee simply signs their name, allowing anyone to cash the check.

Front

What is a Restrictive endorsement?

Back

An endorsement that limits how a check can be cashed, often stating 'For Deposit Only'.

Front

What is the annual interest rate if Jordyn earned $980 in simple interest from a $7,000 deposit over 8 years?

Back

1.75%.