Unit 8: Quiz 2 Flashcards
Meticulous, careful
conscientious
One who makes a deposit of money in a bank or similar institution.
depositor
A contract renting land, buildings, etc, to another for a specified period of time and payment.
lease
A book of forms that provides space for writing in the dates, amounts, and payees for all checks.
register
Forms answering questions such as Who, What, When, Where, and Why are
descriptive forms
Forms answering questions such as How much and How many are
financial forms
Forms answering a mix of questions are
combination forms
A book with pages for recording financial information is a
ledger
A heavy paper folder with files for storing papers is called an
expandable file
A locked container made to resist heat is a
fireproof safe
A locked container within a bank vault is a
safe-deposit box
Mortgage papers should be stored in a
safe-deposit box
Rental leases should be stored in a
expandable file
U.S. Savings Bonds should be stored in a
safe deposit box
A high school diploma should be stored in a
expandable file
Stock certificates should be stored in a
safe deposit box
Stock certificates should be stored in a
safe deposit box
Last year’s tax records should be stored in a
fireproof safe
Savings account passbooks should be stored in a
expandable file
A CD player warranty should be stored in a
expandable file
A list of medical expenses should be stored in a
record book
Earnings records should be stored in a
expandable file
A list of insurance policies should be stored in a
record book
Birth certificates should be stored in a
fireproof safe
Photographs of furnishings should be stored in a
fireproof safe
Photographs of furnishings should be stored in a
fireproof safe
An apartment lease agreement should be stored in a
expandable file
A marriage certificate should be stored in a
fireproof safe
The date for expiration of a TV warranty should be stored in a
record book
One who makes a deposit of money in a bank or similar institution.
depositor
The state of being due; the time when a note or a bill of exchange becomes due.
maturity
A person to whom money is paid.
payee
All the checks written and fees applied to the account within a given month have been subtracted. The deposits have been added. The resulting check register balance and the bank statement balance agree.
reconciling
A check register is a book of forms that provides space for writing in the dates, amounts, and payees for all checks.
register
The process of checking information for completeness and accuracy.
verify
How do banks make money?
By charging fees for services and by collecting interest on loans
offers investment services
brokerage firm
A nonprofit organization owned by its members is called a
credit union
has numerous branches
commercial bank
is considered more personal
savings bank
Which of the following offers a full range of banking services?
commercial bank
Members may have the same place of employment at a
credit union
Service fees will likely be lower at a
savings bank
An order to a bank to pay money is called a
check
The form listing the checks and money to put into an account is a
deposit slip
The form with the official account holder’s written name is called a
signature card
Before a check can be deposited, it should be
endorsed
The person to whom a check is written is called a
payee
The booklet of forms used to record checks and account balances is called a
register
When the check amount is greater than the account balance, the check is called
overdrawn
The monthly record listing the checks, charges, and deposits for an account is called the
bank statement
Making the bank statement balance and the check register balance is called
reconciling
For the use of a depositor’s money, the bank pays
interest
FDIC insures an account up to
250k
A savings account that offers a fixed rate of interest in called a
regular savings account
An account that requires a minimum deposit for a certain period of time is called a
certificate of deposit account
An account that requires a minimum deposit yet allows the depositor to deposit more money or withdraw funds is called a
money market account
What are three advantages of a savings account?
They earn interest, They’re safe, and Depositing or withdrawing is very convenient.
What are three other options for investing your money?
Bonds, Stocks, and Mutual funds
A contract renting land, buildings, etc, to another for a specified period of time and payment.
lease
A specified income payable at stated intervals for a fixed or a contingent period, often for the recipient’s life, in consideration of a stipulated premium paid either in prior installment payments or in a single payment
annuity
Social Security is collected at age
67
Two retirement financial plans that companies offer are
401K and pensions
Two retirement plans that you might set up for yourself are
IRA and annuity
What two things do loan institutions expect from the borrower?
That you pay back the amount borrowed and that you pay a finance charge
What is a credit report?
A summary of your financial history
How can you avoid paying finance charges on short-term credit?
By paying the full amount owed each month
A credit card that can be used to charge purchases at many different stores and businesses is called a
bank credit card
What is a good rule to adopt when considering long-term credit?
That what you are buying is an appreciable item or an investment.
Depending on someone or something else for aid, support, etc.
dependent
Claim
your request for payment from an insurance company
Premium
the annual amount you pay for insurance coverage
Endorsement
an attachment to a policy that changes the policy’s original terms
List the four steps required to figure your income tax.
a. Add up your total income
b. Subtract your deductions
c. Apply the tax rates
d. Subtract your withholding and other payments and credits
Which would you most likely use: itemized deductions or the standard deduction?
standard
You fill out and give your employer a form ____ if you have a full-time job
W4
You receive a form _____ from your employer.
W2
As a teenager you will most likely fill out a _________ tax form.
1040EZ
