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PBMF Ch 19 Quiz

Total questions: 30

Worksheet time: 24mins

Name
Class
Date
1.

A ​ (a)   ​ (b)   is a record of checks, ATM transactions, deposits, and charges on an account. (19.1)

Choose from the below words
bank
statement
financial
plan
account
2.

The person, business, or organization to whom a check is written is the _____. (19.1)

a)
payee
b)
endorser
c)
drawer
d)
issuer
3.

​ (a)   is purchasing a financial product or valuable item with the goal of increasing wealth over time in spite of possible loss. (19.2)

Choose from the below words
Investing
Borrowing
Accounting
4.

Which is the process of spreading risk by putting money in a variety of investments? (19.2)

a)
Concentration
b)
Consolidation
c)
Diversification
d)
Specialization
5.

A check written for an amount greater than the balance of the account is called a(n) _____. (19.1)

a)
overdraft check
b)

unbalanced check

c)
exceeded check
d)

great check

6.

The assets and liabilities a person leaves when he or she dies is their _____. (19.2)

a)
legacy
b)
estate
c)
inheritance
d)
fortune
7.

A ​ (a)   ​ (b)   is an investment created by pooling the money of many people and investing it in a collection of securities. (19.2)

Choose from the below words
mutual
fund
stock
bond
index
8.

Which is a type of savings account that requires a higher minimum balance than a regular savings

account, but offers a higher interest rate? (19.2)

a)

Standard Account

b)

Money Market Account

c)

Basic Account

d)

Mutual Fund

9.

A ​ (a)   ​ (b)   is a strategy for using money to reach important goals and to advance financial security. (19.1)

Choose from the below words
savings
plan
investing
debt
expenses
idea
10.

A ______ is a payment order for a specific amount of money payable to a specific payee. (19.1)

a)

mutual fund

b)

check

c)

debit

d)

money order

11.

Using a debit card has the same result as _____. (19.1)

a)

using a credit card

b)

writing a check

c)

borrowing a money

d)

saving money

12.

Which of the following is an example of a banking service? (19.1)

a)

Safe-Deposit Box

b)

Loan

c)

Special Payment Service

d)

All of these

13.

Which of the following is not required to open a checking account? (19.1)

a)

Credit Report

b)

Signature

c)

Personal Idenfication

d)

Social Security Number

14.

When a customer has _____, a financial institution will honor a check even if it exceeds the account balance. (19.1)

a)

a stop-payment order

b)

been loyal

c)

overdraft protection service

d)

many accounts

15.

Reconciling a bank statement means comparing the _____. (19.1)

a)

check register to the checking account

b)

check register to the savings account

c)

savings account to the checking account

d)

credit card to the debit card

16.

A _____ requires a fixed deposit amount for a fixed period of time. (19.2)

a)

basic savings account

b)

high-yield savings account

c)

money market account (MMA)

d)

certificate of deposit (CD)

17.

The portion of a company’s earnings that is paid to stockholders is _____. (19.2)

a)

an interest payment

b)

a dividend

c)

an annuity

d)

a deposit

18.

A(n) _____ is a contract with an insurance company that provides regular income for a set period of time, usually for life. (19.2)

a)

401(k)

b)

401(b)

c)

Roth IRA

d)

annuity

19.

A retirement program can be sponsored or started by _____. (19.2)

a)

employers

b)

individuals

c)

the self-employed

d)

All of these

20.

A legal document stating a person’s wishes for his or her estate after death is _____. (19.2)

a)

a will

b)

an estate

c)

an annuity

d)

a Keogh plan

21.

A (a)   account is a bank account that allows the owner to make deposits, write checks, and withdraw money. (19.1)

22.

A (a)   card is a card that allows the user to electronically access account funds at an ATM and to pay for purchases from a business. (19.1)

23.

A bank account used by depositors to accumulate money for future use is a (a)   . (19.1)

24.

A payment order for a specific amount of money payable to a specific payee is a (a)   . (19.1)

25.

A combination savings and checking account is an (a)   checking account. (19.1)

26.

The signature on the back of a check is an (a)   . (19.1)

27.

A plan to develop investment growth is a personal (a)   plan. (19.2)

28.

An (a)   is a collection of securities and other assets a person owns. (19.2)

29.

Objects purchased for the pleasure of ownership and because they are expected to increase in value are (a)   . (19.2)

30.

An individual retirement account in which individuals contribute after-tax income and qualified withdrawals are not taxed is a (a)   . (19.2)