CFL Module 9 Exam Questions with 100%
Correct Answers.
1040EZ
the short tax return form designed for single and joint filers with no dependents or itemized
deductions
Annual Percentage Rate (APR)
Interest rate charged on the balance of a credit card
assets
Money and items of value that you own
bank reconciliation
the process of adjusting the checkbook register and bank statement balances so that they agree
benefits
forms of pay other than salary or wages
bounced check
a check that is not honored by a bank and is returned to the payee's bank due to insufficient funds
budget
a spending and saving plan based on expected income and expenses
checking account
A type of bank account in which interest is not usually applied to the principal, but offers a safe
place to store your money with high liquidity and allows you to make withdrawals using an
ATM card, debit card, or personal check.
commission
a set fee or percentage of sale paid to an employee instead of or in addition to a wage
, compound interest
Interest that's generated not only from the money you put into an account, but also from the
interest you make on that money
credit history
A record of a person's borrowing and repayment activity
credit report
A record that details a person's credit history, also includes identifying information, such as
names and addresses, so that an individual can be matched with his or her credit history.
debit card
A payment type that allows you to make electronic purchases that debit the cost of the purchase
directly from your checking account.
disposable income
money available to spend or save after taxes have been paid
diversification
holding a variety of investments for the purpose of reducing overall risk
emergency fund
money set aside for unplanned expenses
endorsement
a signature, with or without instructions, written on the back of a check
entrepreneur
a person who takes the risks of being self-employed and owning a business
exemption
a person claimed as a dependent on a tax return
Correct Answers.
1040EZ
the short tax return form designed for single and joint filers with no dependents or itemized
deductions
Annual Percentage Rate (APR)
Interest rate charged on the balance of a credit card
assets
Money and items of value that you own
bank reconciliation
the process of adjusting the checkbook register and bank statement balances so that they agree
benefits
forms of pay other than salary or wages
bounced check
a check that is not honored by a bank and is returned to the payee's bank due to insufficient funds
budget
a spending and saving plan based on expected income and expenses
checking account
A type of bank account in which interest is not usually applied to the principal, but offers a safe
place to store your money with high liquidity and allows you to make withdrawals using an
ATM card, debit card, or personal check.
commission
a set fee or percentage of sale paid to an employee instead of or in addition to a wage
, compound interest
Interest that's generated not only from the money you put into an account, but also from the
interest you make on that money
credit history
A record of a person's borrowing and repayment activity
credit report
A record that details a person's credit history, also includes identifying information, such as
names and addresses, so that an individual can be matched with his or her credit history.
debit card
A payment type that allows you to make electronic purchases that debit the cost of the purchase
directly from your checking account.
disposable income
money available to spend or save after taxes have been paid
diversification
holding a variety of investments for the purpose of reducing overall risk
emergency fund
money set aside for unplanned expenses
endorsement
a signature, with or without instructions, written on the back of a check
entrepreneur
a person who takes the risks of being self-employed and owning a business
exemption
a person claimed as a dependent on a tax return
