Chapter 4 Review: Working With Financial Institutions

According to the FDIC, the national average interest rate on savings accounts is:

• 0.05%

• 20%

• 50%

• 75%

Which of the following would be an example of a typical interest rate charged by credit card companies?

• 19.99%

• 1%

• 80%

• 0%

Are you more likely to earn more interest on money put into a savings account, or have to pay more interest on past due amounts on credit cards?

• Earn more in savings account

• Pay more on past due credit card balances

Which of the following options would make the most sense to write in the PAY TO THE ORDER OF section?

• $250

• Lil' Kids Daycare Centre

• Two Hundred and Fifty Dollars

• Weekly fee for daycare

Which of the following options would make the most sense to write in the $____________ section?

• $250

• Lil' Kids Daycare Centre

• Two Hundred and Fifty Dollars

• Weekly fee for daycare

Which of the following options would make the most sense to write in the ____________ DOLLARS section?

• $250

• Lil' Kids Daycare Centre

• Two Hundred and Fifty

• Weekly fee for daycare

Which of the following options would make the most sense to write in the MEMO section?

• $250

• Lil' Kids Daycare Centre

• Two Hundred and Fifty

• Weekly fee for daycare

Which of the following are examples of typical fees charged by credit card companies? (select ALL that apply)

• Annual Fee

• Materials Fee

• Time Fee

• Late Fee

• Over-limit Fee

Which of the following are examples of common incentives used by credit card companies?

• Reward Points

• Cash-Back Rewards

• Free Automobiles

• Travel Points

• Jewelry Incentives

You have just found a place to rent and your landlord, Spongebob Squarepants, requires you to write a post-dated cheque for the December rent. The rent is $1000 per month and is due on December 1, 2020.

What do you write in the PAY TO THE ORDER OF section?