Business Math Final Review Exam Questions with Correct Answers

Periodic Rate - ANSWER-The APR expressed over a shorter period of time Credit - ANSWER-Ability of a consumer to obtain goods or services before payment, based on an agreement to pay later Unsecured Loan - ANSWER-Loan not backed with collateral APR - ANSWER-Annual Percentage Rate Credit Limit - ANSWER-The maximum amount of money that can be charged to a given credit card account at any given time. Incentives - ANSWER-Perceived benefits that encourage certain behaviors Deposit - ANSWER-an amount of money that you put into a bank account Checking Account - ANSWER-monetary account that allows the holder to write checks against money that has been deposited into it Payee - ANSWER-The party that receives the check Payor - ANSWER-The party that writes the check (to the payee) Endorsement - ANSWER-When the payee signs their name on the back of a check to cash or deposit the check. Balance - ANSWER-The amount of money currently in your checking account or the amount you owe on your credit card Overdraw/Overdraft - ANSWER-When you write a check for more money than you have in your account Check Registers - ANSWER-used to keep record of your deposits, electronic transfers, cash withdrawals and the checks you have written Bank Statement - ANSWER-a statement from your bank that lists checks, automatic transfers, ATM transactions, and deposits the bank has recorded Reconciling - ANSWER-the process of ensuring the bank statement agrees with your check register