BPA B and F

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  1. Comparison shopping involves ________.
    comparing features and prices at various stores
  2. Personal financial planning means ________.
    • spending, saving, and investing for wanted
    • financial security
  3. A program that allows students to enhance classroom learning
    with part-time work is ______.
    cooperative education
  4. When calculating interest, one must know ________.
    principal, annual interest rate, time
  5. In most cases, the loss of a reported credit
    card within two days may result in a maximum charge of __ for unauthorized use.
  6. Long-term financing usually results in ________.
    smaller payments, higher interest
  7. A company issuing credit with a line of credit
    states a ________.
    maximum amount of money available
  8. Many financial advisors suggest ________ .
    diversification to lessen risk
  9. Profits that are reinvested in a company are defined as
    retained earnings
  10. In the financial world, “risk” indicates ________.
    one cannot be certain about the outcome of an investment
  11. An official document transferring ownership from seller to
    buyer is ________.
    a deed
  12. Most financial experts recommend a savings ratio
    of ________.
    at least 10 percent
  13. Take-home pay may also be classified as ________.
    net pay
  14. A legal option for consumers in trying to settle
    a minor dispute is ________.
    small claims court
  15. The formula for calculating net worth is ________.
    subtract liabilities from assets
  16. The FDIC and SAIF insures deposits
    up to a limit of ________.
    $100,000 per account
  17. Types of risks to home and vehicles fall in the
    category of ________.
    • damage to property or
    • responsibility for injuries
  18. A medical assistance program
    offered to certain low-income individuals and families is ________.
  19. Most medical insurance plans
    require employees to pay a portion of health care costs, called a ____.
  20. A form used to assist in recording payroll
    deductions is ________.
  21. Interest income is earned from
    dividends and interest
  22. An estate tax is collected on the value
    of a person’s property and is a ________.
    federal tax at time of death
  23. Deadlines and penalties apply for
    filing income tax returns ________.
    each year by April 15th
  24. The most common method of dealing with risk is
    to shift it to ________.
    an insurance company
  25. The federal government sells bonds
    and other securities to help fund ________.
    • regular activities and to finance the national
    • debt
  26. Blue-chip stocks generally attract ________.
    conservative investors for safety
  27. Social Security provides benefits to ________.
    • retirees, survivors, and disabled
    • persons
  28. An Employer Identification Number
    is ________.
    • assigned by the IRS and used for
    • income tax purposes
  29. Stocks listed on the Dow Jones
    averages typically are ________.
    large cap stocks
  30. An outstanding check is
    • a check that has been written but not yet
    • cleared the bank
  31. One disadvantage of having money in a certificate of deposit (CD) versus a savings
    account is
    • the money in a CD can only be accessed at
    • certain times without penalty
  32. When an interest rate changes at different times during the term of the loan, it is
    variable rate
  33. An endorsement that signs a check over to a specific person is a
    special endorsement
  34. An order drawn by one bank on its deposits in another bank to pay a third party is
    called a
    bank draft
  35. A petty cash fund is used to pay for all expenses.
  36. A 12-month period used for financial accounting purposes is called
    fiscal year
  37. The second quarter in a year would consist of the months
    April – June
  38. When reconciling your checkbook, the bank service charge should be subtracted from the check register balance in order to balance with the bank.
  39. If a person’s gross pay is $200 weekly; has $44.00 Federal and State Income Tax, $2.22 City Tax, $2.50 insurance, what will this person have in the check as take-home pay?
  40. Simple interest is computed only on the principal.
  41. The greatest disadvantage of using credit cards is
    being tempted to overspend
  42. An ____________ consists of everything a person owns.
  43. A formal written statement of expected income and expenses for a business during a future period of time is called a(n) _______________.
  44. Which agency protects the money that you have invested in a bank?
  45. _____________ gives the owner the advantage of
    receiving cash dividends before common stockholders receive any.
    preferred stock
  46. Stock in a company provides the stockholder with
    regular income when the company
    pays dividends
  47. To speak effectively, you
    should express ideas clearly
  48. Enunciation means
    pronouncing words clearly
  49. If you have a balance of $623.14 in your
    checkbook as of June 1 and you write two checks in the amount of $507.65 and
    make a deposit of $1213.50, what will your ending balance be?
  50. When
    choosing a credit card company, you should consider all of the following
    choices of card designs
  51. The signature card is the bank’s record of a
    customer’s signature.
  52. The maximum balance you can have on a charge
    account is your
    credit limit
  53. On a proof of cash report, if cash received
    according to the cashier’s count is $1,426.06 and cash received according to
    the detailed audit strip is $1,462.06, then cash is
  54. Saving for vacation next summer or paying off
    small debts are examples of
    short-term goals
  55. The first step in planning a budget is
    setting financial goals
  56. Compared with commercial banks, credit unions
    generally offer
    lower fees and loan rates
  57. After a company fails, who has first rights to
    its remaining assets?
    preferred stockholders
  58. A legal form that asks stockholders to transfer their voting rights is called a
  59. Better Business Bureaus handle
    complaints against local merchants
  60. What amount of interest would you earn in one year if the simple interest rate on $12,000 were 7.75%?
  61. A bank statement contains all of the following
    information except
    • is: beginning balance, service charge, checks paid
    • not: deposits in transit
  62. Which of the following Acts protect you against discrimination?
    Equal Credit Opportunity Act
  63. Cosigning a loan requires the cosigner to
    • be responsible for the entire balance of the
    • loan
  64. A savings certificate for a specific amount of money for a specific amount of time with a specific rate of interest is a
    certificate of deposit
  65. A check drawn on the bank that issues it,
    payable to the person designated by the purchaser of the check is a
    cashier's check
  66. Knowingly passing bad checks which is a serious
    crime that can result in a fine, imprisonment, or both, is referred to as a(n)
  67. An endorsement that limits the use of a check to
    the purpose given in the endorsement is called a
    restrictive endorsement
  68. When determining credit, which of the following
    criteria is not used?
  69. If a husband and wife each have an individually
    owned account plus a joint account held in both names, the amount of FDIC
    protection they carry would be
  70. If you make a mistake when writing a check, you
    • write "VOID" across the face of the
    • check and save the check for filing with your monthly statement
  71. FDIC protection only covers losses sustained by
    depositors through the closing of an insured bank.
  72. Keogh and Individual Retirement Accounts were
    originally designed for persons without retirement plans
  73. By placing funds in a checking and savings
    account in the same bank, a customer may increase the FDIC protection per
  74. What defines payment of a debt by equal or
    periodic payments?
  75. The place which sorts checks from different parts
    of the country and sends them to the banks on which they are DRAWN is called
    Federal Reserve bank
  76. The passing of the Federal Reserve Act in 1913
    created the Federal Reserve System.
  77. A check is simply an order to the bank to pay a
    specified amount of money to a person or company named on the item
  78. The interest rate charged to the bank's most
    creditworthy customers is called the
    prime rate
  79. Funds that can be withdrawn at any time are
    demand deposits
  80. Which of the following would be considered the
    safest (most secure) short-term investment?
    treasury bills
  81. Credit, debit, or other types of cards that have embedded microchips are called:
    smart cards
  82. A company issuing credit with a line of credit
    states a ________.
    maximum amount of money available
  83. A check stub and a check register are used for
    the same purpose.
  84. The major types of banking institutions are
    commercial banks, credit unions, savings and loan associations
  85. Which of the following is a compelling cause for
    concern by financial institutions and consumers?
    internet identity theft, phishing, on-line financial fraud
  86. Commercial paper is a short-term note or draft
    issued by a corporation or government and is considered:
    a common investment instrument
  87. Consumers who inform themselves about credit
    costs and use credit wisely may avoid:
    bankruptcy, ruined credit, paying high interest rates on loans
  88. On June 30th, Julia Andrews deposited $452 in a
    savings account at First Commercial Savings and Loan Association. At the end of December her interest was computed at an annual interest rate of 3.5 percent. How much simple interest did her money earn?
  89. A personal line of credit allows a customer to
    write himself a loan by writing a check.
  90. What is generally maintained in the vault of the
    safe deposit boxes
  91. An agreement which allows a customer to pay a
    bill to a company without writing a check is called a/an
    pre-authorized payment
  92. Which of the following can be used as security
    for a loan?
    A.accounts receivable
    B. stock
    C. real estate
    D. all of the above
    D- all of the above
  93. A preset amount of loan money available on
    demand is called
    line of credit
  94. Which of the following instruments are
    bank draft, cashier's check, certified check
  95. Calculate the yearly interest rate on a credit
    card that charges 1 3/4 % monthly interest rate.
  96. You are hired as a car washer who earns $6.50
    per hour. You work Tuesday-Saturday, 9-6
    with one hour for lunch. Find the gross
    weekly pay for the job, note lunch time is unpaid.
  97. A store in Reno, Nevada, advertised a 50” HD
    Plasma TV for $1,699.97. What is the
    sales tax if the combined state and city rate is 6%?
  98. Your company has $10,000 to invest for a 2-year
    period. You purchase a 6% CD with
    interest compounded annually. How much
    is the CD worth at maturity?
  99. Collateral is an intangible asset pledged by a
    borrower as security for repayment of the loan.
  100. A person who owes payment or other performance under
    a security agreement is called the:
  101. This type of check is guaranteed payment by a
  102. This is a form instructing the bank not to pay a
    stop-payment order
Card Set:
BPA B and F
2012-03-01 05:21:51

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