Personal Finance Day 2

The act of comparing transaction history to your bank statement to keep a running record of account balances is called_____________________.

• balancing

• reconciling

• investing

• saving

Having a bank account allows you to do all of the following, EXCEPT:

• Earn interest

• Pay bills

• Deposit and monitor funds

• Print cash

What is the term used to describe the pay you take home after deductions have been removed?

• Net Income

• Wage Dividend

• Gross Income

• Social Security

On average, approximately 10 - 20% of your gross pay goes to taxes.

• True

• False

Among other things, you should consider location, interest rates, and fees charged when choosing a commercial bank.

• True

• False

When a consumer uses a ______ card to make a purchase, funds are automatically deducted from their checking account.

• credit

• debit

Expenses subtracted from income such as federal, state, and local taxes are called _______________.

• taxes

• deductions

• subtractions

• exemptions

Jim gets paid $50,000.00 a year. Which payment method accurately describes this form of compensation?

• Hourly

• Commission

• Direct Deposit

• Salary

Which type of bank account should be used for daily expenses?

• Savings

• Checking

What is the last step in reconciling a checking account?

• Place a checkmark next to register items that appear on the statement.

• Logging all transactions in the register.

• Review the bank statement and contact the bank to discuss errors.

• The statement's ending balance matching the ending balance on the check register.