Banking Basis, Tax Simulation, and Employment & Tax Study Guide

The balance on your bank statement dated July 31 is $832.50. Your bank statement shows a monthly service fee of $6.00. Your check register balance on August 2 is $948.85. Your check register shows one deposit in transit dated July 30 for $200.35. You have two outstanding checks: No. 580 for $40.00 and No. 582 for $50.00. What is the adjusted balance for the checkbook register and the bank statement?

• $1,032.85

• $942.85

• $948.85

• $984.50

You deposited $1,000 at 5 percent interest compounded annually for 3 years. What is the amount of interest and principal you will have by the end of the 3 years?

• $1,157.63

• $1,120.56

• $52.25

• $55.13

If you deposit $500 for 6 months at an annual interest rate of 7 percent, how much interest will you earn?

• $350.00

• $35.00

• $17.50

• $7.50

Compound interest is calculated

• only on a semiannual basis

• more than once a year

• on the principle and interest earned

• all of the above

which type of account offers the least interest (if any)

• savings

• checking

• money market

• special savings

not-for-profit, community based, but you must be eligible to join

• brick and mortar bank

• investment coorporation

• credit union

• cash advance

used to store money for longer term goals, but not for retirement

• mutual funds

• savings account

• checking account

• Certificate of Deposit account

When money is withdrawn from a bank account (also known as ‘withdrawal’).

• debit

• credit

• investment

• reserve

Generally, the more education you receive, the higher your lifetime earnings will be.

• True

• False

The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called ________.

• Gross pay

• Year-to-date pay

• Net pay

• Total pay