Dollars And Sense Final Exam

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By DonCollins
D
DonCollins
Community Contributor
Quizzes Created: 5 | Total Attempts: 5,616
| Attempts: 379
SettingsSettings
Please wait...
  • 1/100 Questions

    Never buy something you do not fully understand.

    • True
    • False
Please wait...
About This Quiz

The 'Dollars and Sense Final Exam' assesses understanding of investment risks, retirement accounts like Roth IRA, and strategic financial decisions. It emphasizes the importance of knowledge in wealth building and correct misconceptions about investment and wealth accumulation strategies.

Retirement Planning Quizzes & Trivia

Quiz Preview

  • 2. 

    Men and women have different views about money.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Men and women often have different perspectives on money due to societal and cultural factors. Historically, men have been expected to be the primary breadwinners and handle financial matters, while women have been encouraged to prioritize family and domestic responsibilities. These traditional gender roles have shaped individuals' attitudes towards money. Additionally, studies have shown that men and women may have different spending habits and financial goals. Therefore, it is reasonable to conclude that men and women have different views about money.

    Rate this question:

  • 3. 

    The number one cause of divorce in this country is money issues.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Money issues are often cited as one of the main reasons for divorce in many countries. Financial problems can lead to stress, disagreements, and a breakdown in communication between partners. Money-related issues such as debt, overspending, or financial infidelity can strain a relationship and ultimately lead to divorce. Therefore, it is likely that the statement "The number one cause of divorce in this country is money issues" is true.

    Rate this question:

  • 4. 

    Walk away power means you leave if you don’t get the price you want.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Walk away power refers to the ability to leave or reject a deal if the desired price or terms are not met. This means that if you do not get the price you want, you have the power to walk away from the negotiation or transaction. Therefore, the statement "Walk away power means you leave if you don't get the price you want" is true.

    Rate this question:

  • 5. 

    A good age to open a checking account is between the ages of 13 and 15.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Opening a checking account at a young age, between 13 and 15, can be beneficial for several reasons. At this age, individuals are starting to develop financial responsibility and independence, and having a checking account can help them learn important money management skills. It allows them to deposit money, track their expenses, and learn how to write checks or use a debit card responsibly. Additionally, opening a checking account at a younger age can establish a longer credit history, which can be helpful when applying for loans or credit cards in the future. Therefore, it is true that opening a checking account between the ages of 13 and 15 is a good idea.

    Rate this question:

  • 6. 

    The power of cash is immediate

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Cash is considered to have immediate power because it is a tangible form of currency that can be used for transactions instantly. Unlike other forms of payment such as credit cards or electronic transfers, cash does not require any additional processing time or verification. It can be easily exchanged for goods and services without any delay or dependence on external factors. Therefore, the statement "The power of cash is immediate" is true.

    Rate this question:

  • 7. 

    In order to effectively manage money, you need a:

    • Budget

    • Online checking account

    • Computer

    • High paying job

    Correct Answer
    A. Budget
    Explanation
    To effectively manage money, having a budget is crucial. A budget helps you track your income and expenses, allowing you to allocate funds wisely and prioritize your financial goals. It helps you identify areas where you can cut back on spending and save more money. By creating a budget, you can plan for future expenses, avoid unnecessary debt, and ensure that you are living within your means. While an online checking account and a computer can be helpful tools for managing money, they are not as essential as having a budget. Similarly, a high paying job may provide more income, but without a budget, it is still possible to overspend and struggle with financial management.

    Rate this question:

  • 8. 

    Bargaining for a lower price

    • Resume

    • Zero Based Budget

    • Negotiating

    • Term Life Insurance

    Correct Answer
    A. Negotiating
    Explanation
    Negotiating refers to the process of discussing and reaching an agreement on terms, conditions, or prices with another party. In the context of the given options, bargaining for a lower price is a specific form of negotiating. Therefore, negotiating is the most appropriate term that encompasses the concept of bargaining for a lower price and is the correct answer.

    Rate this question:

  • 9. 

    Loan payments on a house

    • Liquidity

    • Non-Sufficient Fund

    • Mortgage

    • Commodities

    Correct Answer
    A. Mortgage
    Explanation
    A mortgage refers to the loan payments made on a house. It is a type of loan that is specifically used for purchasing a property, where the property itself serves as collateral for the loan. The borrower makes regular payments, usually on a monthly basis, to repay the loan amount plus interest over a specified period of time. The mortgage allows individuals to finance the purchase of a house, making it a common and important financial tool in the real estate market.

    Rate this question:

  • 10. 

    Using a credit card is a good way to find a bargain

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement suggests that using a credit card is a good way to find a bargain, but the correct answer is false. While credit cards may offer certain benefits like cashback or rewards, they can also lead to impulsive spending and accumulating debt. Finding a bargain typically involves comparing prices, looking for discounts, or negotiating, which can be done without using a credit card. Therefore, using a credit card is not inherently a good way to find a bargain.

    Rate this question:

  • 11. 

    What is a good age for kids to open their first checking account?

    • 8-10 years old

    • Wait until they are18 years old

    • 13-15 years old

    • When they have a job

    Correct Answer
    A. 13-15 years old
    Explanation
    Opening a checking account at the age of 13-15 years old is considered a good age for kids. At this age, children are usually more responsible and capable of understanding the basics of managing money. They have developed some level of financial literacy and can learn important skills like budgeting, saving, and making responsible financial decisions. Opening a checking account at this age allows them to start building a positive financial foundation and learn valuable lessons about money management.

    Rate this question:

  • 12. 

    Life insurance for a specified period of time

    • Term Life Insurance

    • Risk Return Ratio

    • Cash

    • Money Market

    Correct Answer
    A. Term Life Insurance
    Explanation
    Term life insurance is a type of life insurance that provides coverage for a specified period of time, typically for a fixed number of years. It is designed to provide financial protection to the policyholder's beneficiaries in the event of their death during the term of the policy. Unlike other types of life insurance, such as whole life or universal life, term life insurance does not have a cash value component or investment feature. It is a straightforward insurance product that offers a death benefit to the beneficiaries if the insured dies within the specified term.

    Rate this question:

  • 13. 

    Liquidity is the availability of your money.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Liquidity refers to the ease with which an asset or investment can be converted into cash without causing a significant impact on its market value. Therefore, when we say liquidity is the availability of your money, it means that having liquidity implies having access to cash or assets that can be easily converted into cash. Hence, the statement "Liquidity is the availability of your money" is true.

    Rate this question:

  • 14. 

    Diversification means to spread around.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Diversification refers to the strategy of spreading investments across different assets or sectors to reduce risk. By diversifying, an investor can minimize the impact of any single investment's performance on their overall portfolio. Therefore, the statement "Diversification means to spread around" is true as it accurately captures the essence of diversification.

    Rate this question:

  • 15. 

    You need a credit card in order to rent cars and check in to hotels.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    A credit card is not always required to rent cars and check in to hotels. While many car rental companies and hotels do require a credit card for a security deposit or to hold a reservation, there are alternative methods such as using a debit card, cash, or prepaid cards that some establishments accept. Therefore, the statement that a credit card is always needed is false.

    Rate this question:

  • 16. 

    In order to have a FICO score, you must have debt.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because FICO scores are calculated based on an individual's credit history and credit utilization. In order to have a credit history, one must have some form of debt, such as credit cards, loans, or mortgages. Without any debt, there would be no credit history to evaluate and therefore no FICO score.

    Rate this question:

  • 17. 

    There are two parts to FICA: Medicare and Social Security

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because FICA, which stands for Federal Insurance Contributions Act, consists of two parts: Medicare and Social Security. Medicare is a federal health insurance program that provides coverage for individuals aged 65 and older, as well as certain younger individuals with disabilities. Social Security, on the other hand, is a federal program that provides retirement, disability, and survivor benefits to eligible individuals. Both Medicare and Social Security are funded through payroll taxes, which are deducted from employees' wages and matched by their employers.

    Rate this question:

  • 18. 

    It usually takes three months for your budget to begin working well.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement suggests that it takes approximately three months for a budget to start functioning effectively. This implies that it takes time for the budgeting process to stabilize and for individuals or organizations to adapt to the new financial plan. During these three months, adjustments and refinements may need to be made to ensure that the budget aligns with the actual financial circumstances. Therefore, the answer "True" indicates that it is indeed plausible for a budget to take around three months to start working well.

    Rate this question:

  • 19. 

    The fastest growing group of bankruptcy filers is senior citizens.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement "The fastest growing group of bankruptcy filers is senior citizens" is false. While it is true that senior citizens are filing for bankruptcy at increasing rates, they are not the fastest growing group. Recent studies have shown that young adults, particularly those in their 20s and 30s, are actually experiencing the highest increase in bankruptcy filings. This can be attributed to factors such as student loan debt, stagnant wages, and the high cost of living.

    Rate this question:

  • 20. 

    You should always use a realtor when selling a home.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Using a realtor when selling a home is recommended because they have the knowledge, experience, and resources to effectively market and sell a property. They can help set the right price, advertise the listing, negotiate with potential buyers, handle paperwork, and guide the seller through the entire process. Realtors also have access to a wide network of potential buyers and can provide valuable advice and assistance to ensure a smooth and successful sale. Therefore, it is generally advantageous to use a realtor when selling a home.

    Rate this question:

  • 21. 

    If your mortgage payment exceeds 25% of your net income, you have bought more house than you can afford.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    If your mortgage payment exceeds 25% of your net income, it means that a significant portion of your income is going towards paying off your mortgage. This leaves you with less money for other expenses and financial goals. Therefore, it can be concluded that you have bought more house than you can afford, as your mortgage payment is taking up a larger portion of your income than is recommended for financial stability.

    Rate this question:

  • 22. 

    What is the difference between gross pay and net pay?

    • Gross pay is before taxes, net pay is after taxes

    • Gross pay is after taxes, net pay is before taxes

    • There is no difference between the two

    • The difference is determined primarily by your current tax bracket

    Correct Answer
    A. Gross pay is before taxes, net pay is after taxes
    Explanation
    Gross pay refers to the total amount of money earned by an individual before any deductions such as taxes, insurance, or retirement contributions are made. It represents the full amount of income received from an employer. Net pay, on the other hand, is the amount of money an individual takes home after all deductions have been made from their gross pay. These deductions typically include federal, state, and local taxes, as well as other withholdings. Therefore, the correct answer is that gross pay is before taxes, while net pay is after taxes.

    Rate this question:

  • 23. 

    Joe tries to bargain at an electronic store but is unable to get the price down to where he wants it. What should his next step be?

    • Walk away

    • Ask about 90 days same-as-cash

    • Shut up

    • All of the above

    Correct Answer
    A. Walk away
    Explanation
    If Joe is unable to negotiate the price down to where he wants it, his next logical step would be to walk away. This means that he should leave the electronic store without making the purchase. Walking away is a common strategy in bargaining when the seller is not willing to meet the buyer's desired price. Joe can explore other options or look for better deals elsewhere.

    Rate this question:

  • 24. 

    Which of the following is not one of the three keys to finding a bargain?

    • Patience

    • Fast talking

    • Negotiate everything

    • Know where to look

    Correct Answer
    A. Fast talking
    Explanation
    Fast talking is not one of the three keys to finding a bargain because it implies rushing or pressuring the other party into agreeing to a deal. This can often lead to poor decision-making and unfavorable outcomes. On the other hand, patience allows for careful consideration and evaluation of options, negotiate everything enables the opportunity to get the best possible deal, and knowing where to look helps in finding the best prices and discounts.

    Rate this question:

  • 25. 

    Emotional, visual and has immediacy

    • Term Life Insurance

    • Risk Return Ratio

    • Cash

    • Money Market

    Correct Answer
    A. Cash
    Explanation
    Cash is a form of currency that is readily available and easily accessible. It is often referred to as liquid assets because it can be used immediately to make purchases or pay off debts. Unlike other forms of investments or financial instruments, cash does not carry any risk and provides a sense of security. Additionally, cash is tangible and can be physically seen and counted, making it a visual form of wealth. Overall, cash is emotional as it provides a sense of financial stability and immediate financial power.

    Rate this question:

  • 26. 

    Experian, TransUnion, Equifax

    • Debt Consolidation

    • Premium

    • Leasing

    • Credit Bureaus

    Correct Answer
    A. Credit Bureaus
    Explanation
    The given answer "Credit Bureaus" is correct because Experian, TransUnion, and Equifax are all well-known credit bureaus. Credit bureaus are companies that collect and maintain credit information on individuals and businesses. They gather data from various sources, such as lenders and financial institutions, and use it to generate credit reports and credit scores. These reports and scores are used by lenders, landlords, and other entities to assess an individual's creditworthiness and make decisions about lending or leasing. Therefore, the answer "Credit Bureaus" accurately describes the role of Experian, TransUnion, and Equifax in the financial industry.

    Rate this question:

  • 27. 

    With investments, as the risk goes up, so should the hopeful return.

    • Term Life Insurance

    • Risk Return Ratio

    • Cash

    • Money Market

    Correct Answer
    A. Risk Return Ratio
    Explanation
    The risk-return ratio refers to the relationship between the level of risk associated with an investment and the potential return it can generate. In general, as the risk increases, investors expect a higher return to compensate for taking on that risk. This is because higher-risk investments have a greater chance of losing money, so investors demand a higher return to justify the increased risk. Therefore, the answer suggests that as the risk goes up, the expected return should also increase.

    Rate this question:

  • 28. 

    Most often identity theft is committed by strangers.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Identity theft is not most often committed by strangers. In fact, studies have shown that a significant number of identity theft cases are perpetrated by individuals known to the victim, such as friends, family members, or acquaintances. This is because these individuals often have easier access to personal information and are more likely to exploit the trust placed in them. Therefore, the correct answer is False.

    Rate this question:

  • 29. 

    Spending cash is more painful than using a debit card.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Spending cash is more painful than using a debit card because when we use cash, we physically see the money leaving our hands, which creates a sense of loss. On the other hand, using a debit card involves just swiping or tapping, which doesn't have the same tangible effect. This psychological aspect makes spending cash feel more real and can lead to more careful consideration of purchases.

    Rate this question:

  • 30. 

    Lists your personal, work and education history

    • Reconcile

    • Resume

    • Zero Based Budget

    • Negotiating

    Correct Answer
    A. Resume
    Explanation
    The word "resume" is the only term that is related to personal, work, and education history. Reconcile refers to resolving conflicts or differences, Zero Based Budget is a financial term, and Negotiating is the process of reaching an agreement. None of these terms specifically relate to personal, work, and education history. Therefore, the correct answer is "Resume."

    Rate this question:

  • 31. 

    The Roth IRA is an after-tax investment that grows tax free.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A Roth IRA is a type of retirement account where contributions are made with after-tax dollars. This means that the money you contribute to a Roth IRA has already been taxed. However, the growth and earnings within the account are not subject to taxes. This makes a Roth IRA an attractive investment option for individuals who anticipate being in a higher tax bracket in retirement. Therefore, the statement that a Roth IRA is an after-tax investment that grows tax-free is correct.

    Rate this question:

  • 32. 

    Rate of return matters when it comes to compound interest.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because the rate of return directly affects the growth of compound interest. Compound interest is calculated based on both the initial principal amount and the accumulated interest from previous periods. A higher rate of return will result in a faster growth of the investment over time, while a lower rate of return will lead to slower growth. Therefore, the rate of return is an important factor to consider when it comes to compound interest.

    Rate this question:

  • 33. 

    The envelope system includes using credit cards for emergencies.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because the envelope system is a method of budgeting where cash is allocated into different envelopes for various expenses. It does not involve the use of credit cards for emergencies. Instead, it encourages individuals to use cash for their everyday expenses and to only spend what is allocated in each envelope. This helps to control spending and avoid relying on credit cards for emergencies.

    Rate this question:

  • 34. 

    You are ready to buy a home under the following conditions:

    • You have a good paying job and you have worked there for three years

    • You have an emergency fund

    • You have at least 10% down

    • Both b and c

    Correct Answer
    A. Both b and c
    Explanation
    The correct answer is "Both b and c". This means that in order to be ready to buy a home, you need to have both an emergency fund and at least 10% down payment. Having a good paying job and working there for three years is not sufficient on its own, as you also need to meet the other two conditions.

    Rate this question:

  • 35. 

    The Baby Steps can best be described as:

    • A process for getting out of a financial mess in a systematic way

    • A series of seven sequential steps that help you plan, save and manage money

    • A series of steps that will work in good times and in bad times

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The Baby Steps can best be described as a series of seven sequential steps that help you plan, save, and manage money. These steps are designed to guide individuals in getting out of a financial mess in a systematic way. They provide a structured approach to financial management that can be followed in both good times and bad times. By following these steps, individuals can develop healthy financial habits and work towards achieving their financial goals.

    Rate this question:

  • 36. 

    The average mutual fund has anywhere from 90-200 companies in it.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement suggests that the average mutual fund typically consists of a portfolio that includes a range of 90 to 200 different companies. This implies that mutual funds tend to diversify their investments by including a large number of companies in their portfolios. Therefore, the answer "True" indicates that the statement is accurate.

    Rate this question:

  • 37. 

    A written cash flow plan is done every:

    • Three months

    • Month

    • Six months

    • Time your income changes

    Correct Answer
    A. Month
    Explanation
    A written cash flow plan is done every month because it allows individuals or businesses to track their income and expenses on a regular basis. By reviewing and updating the cash flow plan monthly, one can ensure that they have a clear understanding of their financial situation and make necessary adjustments to their budget or spending habits. This helps in managing cash flow effectively and making informed financial decisions.

    Rate this question:

  • 38. 

    What is the best way to buy a car?

    • Purchase used (two years or older)

    • Leasing

    • 0% financing on new or used

    • Purchase new at the end of the year

    Correct Answer
    A. Purchase used (two years or older)
    Explanation
    Purchasing a used car that is two years or older is considered the best way to buy a car. This is because used cars have already depreciated significantly, allowing buyers to get a better deal compared to buying a brand new car. Additionally, used cars often come at a lower price point, which can help save money. By opting for a used car, buyers can avoid the immediate depreciation that occurs when a new car is driven off the lot.

    Rate this question:

  • 39. 

    If we used a race analogy to describe building wealth, it would be most like a sprint.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement suggests that building wealth is not like a sprint, implying that it is not a quick and short-term process. Instead, building wealth is more likely to be a long-term endeavor that requires consistency, patience, and endurance, similar to a marathon.

    Rate this question:

  • 40. 

    Why do you plan for retirement instead of relying on Social Security to take care of you?

    • Monthly Social Security benefits are not going to be enough to live on comfortably

    • You are depending on another to take care of you

    • The system may not be able to pay promised benefits in the future

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    Planning for retirement is necessary because relying solely on Social Security benefits may not be sufficient to maintain a comfortable lifestyle. Depending on another entity, such as the government, to take care of all financial needs is not a reliable strategy. Moreover, there is a possibility that the Social Security system may not be able to fulfill its promised benefits in the future, making it even more important to have personal retirement savings and investments. Therefore, all the given reasons justify the need for planning for retirement instead of relying solely on Social Security.

    Rate this question:

  • 41. 

    Which is not a characteristic of cash?

    • Visual

    • Walk away power

    • Emotional

    • Immediacy

    Correct Answer
    A. Walk away power
    Explanation
    "Walk away power" is not a characteristic of cash. Cash does not have the ability to allow someone to walk away from a transaction or situation with power or leverage. Cash is a physical form of currency that is used for immediate payment and exchange. It is tangible, has immediacy, and can evoke emotional responses, but it does not provide the ability to walk away from a situation with power.

    Rate this question:

  • 42. 

    Which of the following is not a regulatory agency?

    • SEC

    • FDIC

    • IRS

    • Bank of America

    Correct Answer
    A. Bank of America
    Explanation
    Bank of America is not a regulatory agency because it is a private financial institution, not a government agency responsible for regulating and overseeing specific industries or sectors. The SEC (Securities and Exchange Commission), FDIC (Federal Deposit Insurance Corporation), and IRS (Internal Revenue Service) are all regulatory agencies that have specific roles in regulating the financial industry and enforcing laws and regulations.

    Rate this question:

  • 43. 

    If you own 50 shares of stock that you purchased for $40 a share, and the price increases to $70 per share, your profit is:

    • $20

    • $1500

    • $2000

    • $3500

    Correct Answer
    A. $1500
    Explanation
    If you own 50 shares of stock that you purchased for $40 a share, and the price increases to $70 per share, your profit can be calculated by subtracting the purchase price from the selling price and then multiplying by the number of shares. In this case, the profit would be ($70 - $40) * 50 = $1500.

    Rate this question:

  • 44. 

    Spend every dollar on paper before the month begins

    • Commodities

    • Reconcile

    • Resume

    • Zero Based Budget

    Correct Answer
    A. Zero Based Budget
    Explanation
    A zero-based budget is a method of budgeting where every dollar of income is allocated to a specific expense or savings category before the month begins. This means that instead of basing the budget on the previous month's spending or income, each category starts at zero and must be justified and allocated funds accordingly. This approach helps individuals or organizations prioritize their spending and ensure that every dollar has a purpose, leading to better financial management and decision-making.

    Rate this question:

  • 45. 

    Which is a good investment?

    • Gold

    • Commodities

    • Mutual Funds

    • Single Stocks

    Correct Answer
    A. Mutual Funds
    Explanation
    Mutual funds are a good investment because they offer diversification by pooling money from multiple investors to invest in a variety of assets such as stocks, bonds, and other securities. This diversification helps to spread the risk and reduce the impact of any single investment performing poorly. Additionally, mutual funds are managed by professional fund managers who have expertise in selecting and managing investments, making them a suitable option for individuals who may not have the time or knowledge to actively manage their investments.

    Rate this question:

  • 46. 

    The availabiltiy of your money

    • Liquidity

    • Non-Sufficient Fund

    • Mortgage

    • Commodities

    Correct Answer
    A. Liquidity
    Explanation
    Liquidity refers to the ease with which an asset or investment can be converted into cash without causing significant price fluctuations. It represents the availability of your money and how quickly you can access it. In the given options, liquidity is the most relevant term that explains the availability of your money. Non-Sufficient Fund refers to a situation where there are not enough funds in an account to cover a transaction, Mortgage refers to a loan taken to purchase a property, and Commodities refer to raw materials or primary agricultural products that can be bought or sold.

    Rate this question:

  • 47. 

    Movement of tax-deferred retirement money from one plan to another

    • Money Market

    • Opportunity Cost

    • Rollover

    • Equity

    Correct Answer
    A. Rollover
    Explanation
    A rollover refers to the movement of tax-deferred retirement money from one plan to another. This typically occurs when an individual changes jobs or decides to consolidate their retirement savings into a single account. By choosing to rollover their funds, individuals can avoid incurring taxes or penalties on their retirement savings. This allows them to continue benefiting from the tax advantages of their retirement funds and potentially grow their savings over time.

    Rate this question:

  • 48. 

    Checking your bank statement against your account register

    • Mortgage

    • Commodities

    • Reconcile

    • Resume

    Correct Answer
    A. Reconcile
    Explanation
    Reconciling your bank statement against your account register involves comparing the transactions recorded in your bank statement with those in your account register to ensure they match. This process helps identify any discrepancies or errors, such as missing or incorrect transactions. By reconciling, you can ensure the accuracy of your financial records and detect any potential fraudulent activity or mistakes.

    Rate this question:

  • 49. 

    There is no interest charged on debit card purchases

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Debit card purchases do not incur any interest charges because the money used for these transactions is directly deducted from the cardholder's bank account. Unlike credit cards, which allow users to borrow money and pay it back later, debit cards only allow users to spend the funds they already have. Therefore, there is no need for interest charges on debit card purchases.

    Rate this question:

Quiz Review Timeline (Updated): Mar 20, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 31, 2011
    Quiz Created by
    DonCollins
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.