Managing Money Unit Test

Karina keeps excellent records and always knows precisely how much is in her bank account. However, when she receives her bank statement, she’s surprised to see that she has been charged a $5.00 overdraft fee. After reviewing her well-kept records, she cannot find anything that is incorrect. Which would be the best action for Karina to take?

• Review her records again.

• Wait for the bank to call her.

• Ignore the fee because it is relatively small.

• Check her records against her bank statement.

In which situation would a savings bond be the best investment to earn interest?

• if you need access to your cash quickly

• if you are saving each month for a new car

• if you are putting aside a chunk of money to purchase a house in five years

• saving to pay a tax bill in four months

Many checking accounts offer multiple ways of accessing money in addition to checks. Which of these can be used to access money in a checking account?

• debit card

• credit card

• certificate of deposit

• passbook

Look at the table below showing an example of a checkbook ledger.

According to the table, what is Omar’s bank balance?

• $761.25

• $810.30

• $814.75

• $1,186.25

Which of these is the best reason for Nina to maintain up-to-date and accurate records of her bank accounts?

• to decide which bills to pay first

• to determine how much she needs to earn

• to stop herself from making financial mistakes

• to know how much money she has for budgeting

What is one benefit of purchasing saving bonds?

• Saving bonds are purchased from the government and guaranteed to increase in value.

• Saving bonds are purchased from commercial banks and guaranteed to increase in value.

• Saving bonds are short term investments backed by the government to protect from loss.

• Saving bonds are long term investments created to help first time home buyers obtain a mortgage.

Alex has not been keeping his banking records up to date. On his latest bank statement, he found that he had been charged an overdraft fee for writing a bad check. In addition to his being charged a fee, which of these is another possible consequence of an overdraft?

• The bank will close the merchant's account.

• The merchant who received his check will be charged an overdraft fee.

• The bank will cancel his debit card.

• The merchant who received his check will expect repayment and a penalty fee.

This is a table that could be used to maintain a record of account transactions. It is similar to what is found in a checkbook ledger. Some of its column headings are missing. How should these columns be labeled?

• Balance, Transaction Code, Description

• Check Number, Description, Balance

• Transaction Code, Balance, Notes

• Description, Check Number, Balance

Which of these is an advantage of checking accounts?

• Checking accounts prevent the customer from having overdraft fees.

• Checking accounts allow convenient ways to deposit or withdraw funds.

• Checking accounts are processed immediately so customer and bank records always match.

• Checking accounts offer limited checks but offer higher rates of interest.

Which of these is a characteristic of certificates of deposit (CDs)?

• They are always offered at variable rates.

• They last for a set period of time.

• They can be opened with any amount of money.

• They allow access to the money at any time without penalty.