WorksheetsBanking
Total questions: 12
Worksheet time: 4mins
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the
Federal Deposit Insurance Corporation. (FDIC)
State Banking Commission
US Treasury Department
Federal Reserve Board
Which financial product has the most predictable income?
Certificate of deposit
Stock
Real estate
Option/future contract
When James received his paycheck, he planned to cash it at a check cashing store. You advise him to cash it at his own bank if possible. Why?
There is likely to be a ceiling on the size of the check he can cash
They generally require a co-signer
They typically require a two day waiting period before giving cash
They typically charge high fees
Which documents should be stored in a safe-deposit box?
Current paycheck stubs
Checkbook statements
Mortgage loan papers
Copies of current and past budgets
Money orders are:
Available for no fee at banks and retail stores
Distributed by the Treasury Department
A purchased certificate to pay a specified amount to a specific payee
A certified check used to pay a specified amount to a specific payee
What action should a person take who must make a tuition payment at the end of August each year?
Plan to open a new credit card account that will be used to charge the needed amount of money
Divide the total amount of money that will be needed into 12 equal parts and invest that amount in stocks
Decide how much money will be needed and then place 1/12th of that amount in a separate account each month
Obtain a short-term collateralized loan for the needed amount of money
When a person is reconciling a checking account and notices that the balance in the checkbook does not match the balance on the statement from the bank, which action is it appropriate for the person to take first?
Deposit sufficient funds to adjust the balance in the checkbook to match the bank's balance
Adjust the balance in the checkbook so it is the same as the bank's balance
Notify the bank in writing to adjust the statement
Determine that checks already written have cleared
The best suggestion you gave a friend who is writing a check for the first time is:
Use the checkbook stub or register to keep a record of the date you write the check
Make the check payable to cash
Date the check because it is usually proof of payment
Use pencil to permit changes
The term used to describe the ease and speed with which you can convert savings or an investment to cash is:
Convertibility
Principal
Liquidity
Rate of Return
A bank Certificate of Deposit is a:
Savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals
Cash deposit in a savings account that earns interest
Savings instrument that requires a deposit for a period of time during which the saver can withdraw money from the plan at any time without a penalty
Certificate for deposits that are issued for half the face value
What is the primary purpose of a checking account?
To earn interest on deposited funds
To provide a safe place to store money
To facilitate daily financial transactions
To invest in stocks and bonds
What is the first step to take when creating a personal budget?
Decide how much money to save each month
Calculate your total monthly income
Plan your monthly expenses
Decide how much money to spend on entertainment
