WorksheetsFIN MATH VOCAB quiz 2B Financial institutions
Total questions: 18
Worksheet time: 13mins
Which of the following DOES NOT describe inflation
cost of gas increasing over the years
price of consumer goods increasing over the years
increase in minimum wages over the years
average height of humans increasing over the years
a check written for an amount greater than the balance of the account
overdraft
overspend
fraud
What is the main advantage of a mutual fund for an investor?
Its price doesn't change much.
It offers diversity in investment.
It has a set maturity date.
It can be sold at a profit.
Compound interest
Compound interest is a quick and easy method of calculating the interest charge on a loan.
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words,interest on interest.
Compound interest is money in your checking account
Interest on the principal only.
Compound Interest
Simple Interest
Which term refers to things you want to accomplish within a year?
long-term goals
short term risks
long term expenses
short-term goals
Which of the following is an example of a debit adjustment (increases what the pt. owes)
professional discount
discount for paying in cash
discount from the insurance company
check returned for insufficient funds
Taking more money out of your account than is available is called?
Overdraft
Deposit
Withdraw
Balance
What do you call the process of bringing your checkbook register into agreement with the bank statement?
Withdrawal
Deposit
Reconciliation
Endorsement
You should keep track of your spending because if you spend more money than you have in your bank account you may get an __________________ notice. and the payment will be rejected.
Balance
Withdraw
Bankruptcy
insufficient funds
Why is compound interest more advantageous than simple interest?
It’s more difficult to calculate, so fewer people use compound interest, making more profits for those who do.
Compound interest accumulates very rapidly, so you only have to save for 3 years or fewer to earn far more money.
Compound interest is attached to the stocks with the highest risk, so you get the highest interest on them
In compound interest, you earn interest on not only your principal, but also on the interest you’ve already made.
Rule of 72: How many years to double my money if I get a 9% return on investment?
8 years
7.2 year
7 years
9 years
A mutual fund is
like a loan where you are giving money in exchange for an interest payment.
is issued by the government to support government spending (schools, roads, low-income housing).
an investment with diversified stocks and bonds.
Bonds are .....
Part ownership in a company or corporation
A way of making higher income in times of high inflation
Debt obligations similar to putting your money in a bank
A way to support a company
Which term refers to things you want to accomplish that take more than a year?
long-term goals
short term risks
long term expenses
short-term goals
The amount you owe on an account to bring it out of negative
pending amount
outstanding balance
liquid amount
funds balance
amounts that have not cleared the bank to be paid but still show on the online account.
transaction in waiting
slow transactions
pending transactions
short-term transactions
getting all of your assets into one place that is accessible for cash withdrawal
liquidation
freezing
precipitation
laundering
