Module 5 Quiz Review

Which line on a check designates who will receive the money?

• Memo line

• Payee line

• Numerical dollar box

• Signature line

When filling out a deposit slip, which line designates Cash Back?

• Total

• Net Deposit

• Less Cash Received

• Checks

A person writes a check for more money than he has in his checking account. In order for the check to be paid by the bank, he needs to have:

• Credit Insurance

• A Credit History

• A Joint Account

• Overdraft Protection

A sum provided at the beginning of the lease to ensure payment for any incurred damages is a ______________________.

• Transaction Fee

• Security Deposit

• Mortgage

• Rent Payment

A __________________ also known as a BANK DRAFT, is a check written by a bank on its own funds.

• Certified Check

• Guaranteed-Payment Check

• Cashier's Check

• Money Order

To determine the time value of depositing $100 in a savings account, a person needs to know the interest rate and which of the following:

• their total income

• whether the account is FDIC protected

• the rate of inflation

• whether the bank offers overdraft protection

It is generally better for a person to buy a home that she can afford than to rent an apartment because she will _______.

• build equity

• have fixed insurance needs

• have a lower debt to credit ratio

• avoid bankruptcy

Duncan creates a budget where he plans on buying a car for $5,000. He finds one and buys it for $4,000. The result is:

• a $5,000 debt

• a $1,000 budget deficit

• a $1,000 budget surplus

• that Duncan will have to file for Bankruptcy

Which of the following is an example of a VARIABLE expense?

• Rent

• Groceries

• Mortgage

• Car Payment

Money left over after paying taxes AND EXPENSES is called:

• Gross Income

• Discretionary Income

• Net Income

• Inheritance