final exam
_______________ insurance on average, runs about 1/20th the cost of whole life /
cash value insurance. - ANS - Term
\A bank statement has a beginning balance of $5,491.56, total debits of $1,130.00,
and an ending balance of $5,329.53. What is the difference between the beginning
balance and the ending balance? - ANS - $162.03
\A card issued by a bank allowing the holder to transfer money electronically to
another bank account when making a purchase (usually tied to a checking
account)? - ANS - Debit card
\A check that cannot be processed because the account holder has non-sufficient
funds (NSF)? - ANS - Bounced Check
\A good password: - ANS - Includes a combination of letters and numbers that are
memorable and meaningful to you
\A major payroll tax is called: - ANS - FICA, for Federal Insurance Contributions
Act
\A paycheck has withholding tax taken out: - ANS - That is paid to state and
federal taxing authorities
\An online account transfer is: - ANS - A transfer of money from one account to
another conducted online
\Any day, Monday through Friday, minus legal holidays (federal and/or state). -
ANS - Business day
\As President, Barack Obama appointed Timothy Geithner to the following
position: - ANS - United states the secretary of treasury
\By opting out of paper bank statements, your bank promises savings of $2 per
month. How much will you save in a year? - ANS - $24 per year
\Cash value insurance is NOT the same as whole life insurance. - ANS - False
\Charitable donations you make may reduce the amount of taxes you have to pay
- ANS - True
\Identity theft is important to be aware of because: - ANS - Once your identity is
stolen, it can be fraudulently sold, and others can continue to use your good
credit to obtain credit cards and loans
\If you fail to file a tax return: - ANS - The IRS will penalize you in the form of a
dollar amount
\If you want to reduce the amount you pay in taxes each year: - ANS - Start
contributing to an individual retirement account
\Income tax is: - ANS - Tax paid to the state, federal, and local governments based
on income earned over the past year.
, \Internet access to use online banking costs you $39.99 per month. A book of
checks costs you $17.95 per 100. Your bank charges you a $.05 per check writing
fee for over 5 checks per month. You write an average of 25 checks per month
and each one needs a 50 cent stamp. What is your cost difference per month to
use online banking vs check writing? - ANS - $22.00
\It covers you in the case of a vehicle accident, a break-in, or theft. It also covers
your passengers and anyone you hit with your car—even if that person is walking
or on a bike. - ANS - Auto Insurance
\Last year you forgot to pay a total of three department store monthly statements.
Two of the three charged you a $35 fee for this and one store charged you $25.
You also forgot to pay your monthly credit card bill twice and the credit card
company penalized you $30 per oversight and raised the interest rate on your
credit card balance of $400 to 18% from 8% for the remaining 4 months of the
year. This year you switched to online banking with automatic payment. What did
online banking with autopay save you? - ANS - $168
\Make (one account) consistent with another, especially by allowing for
transactions begun but not yet completed. - ANS - Reconcile
\Occurs when an account cannot provide adequate funds to satisfy the demand
of a payment? - ANS - Insufficient Funds or Non Sufficient Funds (NSF)
\One advantage of doing online banking from a Wi-Fi hot spot is increased
security. - ANS - False
\One hint that you might be dealing with a phishing site is: - ANS - All of the
above
\Overdraft fees can be avoided by: - ANS - Knowing your account balance and
what upcoming bills will be paid
\Reimburses you for unexpected losses or damages caused by a specific set of
hazards to a specific thing. - ANS - Insurance
\Tax rates are 10% on the first $10,000 you earn and 20% on amounts over that.
You earn $15,000. What is your tax? - ANS - $2000
\Taxes go to pay for: - ANS - Social Security 21%, National Defense 21%, and net
interest 9%
\The check can be either deposited or cashed with no restrictions. Complete this
type of endorsement at the time you will receive the cash or make the deposit,
because once the check is endorsed, anyone can cash it. - ANS - Blank
endorsement
\The federal government: - ANS - Is the national government of the U.S. that takes
in taxes and funds such programs as maintaining interstate highways and the
military
_______________ insurance on average, runs about 1/20th the cost of whole life /
cash value insurance. - ANS - Term
\A bank statement has a beginning balance of $5,491.56, total debits of $1,130.00,
and an ending balance of $5,329.53. What is the difference between the beginning
balance and the ending balance? - ANS - $162.03
\A card issued by a bank allowing the holder to transfer money electronically to
another bank account when making a purchase (usually tied to a checking
account)? - ANS - Debit card
\A check that cannot be processed because the account holder has non-sufficient
funds (NSF)? - ANS - Bounced Check
\A good password: - ANS - Includes a combination of letters and numbers that are
memorable and meaningful to you
\A major payroll tax is called: - ANS - FICA, for Federal Insurance Contributions
Act
\A paycheck has withholding tax taken out: - ANS - That is paid to state and
federal taxing authorities
\An online account transfer is: - ANS - A transfer of money from one account to
another conducted online
\Any day, Monday through Friday, minus legal holidays (federal and/or state). -
ANS - Business day
\As President, Barack Obama appointed Timothy Geithner to the following
position: - ANS - United states the secretary of treasury
\By opting out of paper bank statements, your bank promises savings of $2 per
month. How much will you save in a year? - ANS - $24 per year
\Cash value insurance is NOT the same as whole life insurance. - ANS - False
\Charitable donations you make may reduce the amount of taxes you have to pay
- ANS - True
\Identity theft is important to be aware of because: - ANS - Once your identity is
stolen, it can be fraudulently sold, and others can continue to use your good
credit to obtain credit cards and loans
\If you fail to file a tax return: - ANS - The IRS will penalize you in the form of a
dollar amount
\If you want to reduce the amount you pay in taxes each year: - ANS - Start
contributing to an individual retirement account
\Income tax is: - ANS - Tax paid to the state, federal, and local governments based
on income earned over the past year.
, \Internet access to use online banking costs you $39.99 per month. A book of
checks costs you $17.95 per 100. Your bank charges you a $.05 per check writing
fee for over 5 checks per month. You write an average of 25 checks per month
and each one needs a 50 cent stamp. What is your cost difference per month to
use online banking vs check writing? - ANS - $22.00
\It covers you in the case of a vehicle accident, a break-in, or theft. It also covers
your passengers and anyone you hit with your car—even if that person is walking
or on a bike. - ANS - Auto Insurance
\Last year you forgot to pay a total of three department store monthly statements.
Two of the three charged you a $35 fee for this and one store charged you $25.
You also forgot to pay your monthly credit card bill twice and the credit card
company penalized you $30 per oversight and raised the interest rate on your
credit card balance of $400 to 18% from 8% for the remaining 4 months of the
year. This year you switched to online banking with automatic payment. What did
online banking with autopay save you? - ANS - $168
\Make (one account) consistent with another, especially by allowing for
transactions begun but not yet completed. - ANS - Reconcile
\Occurs when an account cannot provide adequate funds to satisfy the demand
of a payment? - ANS - Insufficient Funds or Non Sufficient Funds (NSF)
\One advantage of doing online banking from a Wi-Fi hot spot is increased
security. - ANS - False
\One hint that you might be dealing with a phishing site is: - ANS - All of the
above
\Overdraft fees can be avoided by: - ANS - Knowing your account balance and
what upcoming bills will be paid
\Reimburses you for unexpected losses or damages caused by a specific set of
hazards to a specific thing. - ANS - Insurance
\Tax rates are 10% on the first $10,000 you earn and 20% on amounts over that.
You earn $15,000. What is your tax? - ANS - $2000
\Taxes go to pay for: - ANS - Social Security 21%, National Defense 21%, and net
interest 9%
\The check can be either deposited or cashed with no restrictions. Complete this
type of endorsement at the time you will receive the cash or make the deposit,
because once the check is endorsed, anyone can cash it. - ANS - Blank
endorsement
\The federal government: - ANS - Is the national government of the U.S. that takes
in taxes and funds such programs as maintaining interstate highways and the
military
