Quiz 1

Question 1

Can a check bounce if you have ODP?

Answer 1

Yes

Question 2

Who gives us the ultimate source of wealth?

Answer 2

God

Question 3

What is the name of the amount owed to a company during a billing cycle?

Answer 3

Total amount due

Question 4

How do you calculate interest?

Answer 4

Initial number is multiplied by the percentage of interest and added to the initial number to get the total

Question 5

What is sent to a costumer to notify them of account activity?

Answer 5

An invoice

Question 6

If a person takes out a 15 year mortgage on a house the loan payments will be higher than that of a 30 year mortgage but they will pay back less in interest over the length of the loan. T/F

Answer 6

True

Question 7

Describe Economist.

Answer 7

Scholars of production, distribution, and consumption within an economy

Question 8

The disadvantage of having a 401k is that companies will sometimes match your contributions. T/F

Answer 8

False

Question 9

What economic system did the pilgrims try in order for everyone to share equally.

Answer 9

Socialism

Question 10

Any system for ____,____ and consumption of goods and services is an economy.

Answer 10

Production, distrobution

Question 11

A ___ is sent to an employee each pay period when a company has paid an employee money.

Answer 11

Paycheck summary

Question 12

What is social security?

Answer 12

Automatic pay deduction for retirement

Question 13

Name a problem with social security.

Answer 13

Employees have no control over the deduction

Question 14

How did the pilgrims support themselves in the new world?

Answer 14

Profitable work

Question 15

When receiving charges, it is important to do what?

Answer 15

Review invoices received to ensure proper amounts are charged

Question 16

One of the deductions of a retirement for an employee paycheck that is automatic and they have no control over is a 401K plan. T/F

Answer 16

False

Question 17

Colonist in the new world discovered that private enterprise was successful and produced goods for themselves. T/F

Answer 17

True

Question 18

The ____ is the lowest amount a costumer can pay on an account without receiving a fee.

Answer 18

Minimum payment due

Question 19

___ is a service that is offered by a bank that allows for automatic transfer of funds linked to another account owned by the costumer to prevent returned checks or declined purchases

Answer 19

Over draft protection - ODP

Question 20

In order to develop a society, there needs to be a complex economy

Answer 20

True

Question 21

Describe economics

Answer 21

Study of choices of individuals and societies make in production and distribution of goods and the consumption

Question 22

Two levels of economics

Answer 22

Micro macro

Question 23

If intrest rates fall bond prices fall to T/F

Answer 23

False

Question 24

If a savings account of 300.00 is earning 7 percent interest per year at the end of one year I would have 421.00. T/F

Answer 24

False

Question 25

Describe Balance Transfers

Answer 25

Amounts transferred by a customer from other creditors owed to the account and added to balance owed

Question 26

Describe Cash Advance

Answer 26

Cash money given to a costumer as opposed to charge against the balance of the credit card

Question 27

Florida has state tax?

Answer 27

No

Question 28

Credits and adjustments on a bill and will appear on the invoice will have a negative impact

Answer 28

True

Question 29

Did the pilgrims start their economy from scratch

Answer 29

Yes

Question 30

The interest rate for cash advances on a credit card are usually less than the interest rates for purchases on a credit cars. T/F

Answer 30

False

Question 31

If you owe a bank fee, the bank automatically takes it from your bank account. T/F

Answer 31

True

Question 32

People do not create an economy in order to survive

Answer 32

False

Question 33

Any charges will be shown on credits/adjustments section during a billing cycle. T/F

Answer 33

False

Question 34

Purchasing a companys single stock is better than buying a mutual fund

Answer 34

False - a mutual fund is more safe incase a company goes under

Question 34

If a costumer does not have funds in their linked odp account, the bank issues a ___ for a bad check and decline the transaction

Answer 34

Non Sufficient Funds - NSF

Question 35

Available credit on a credit card is the amount that is left available on the account to charge without exceeding the cards credit limit. T/F

Answer 35

True

Question 36

To calculate due date add what 3 components?

Answer 36

Cycle Date, Due Date, Payment Date