Finance Quiz - Checking Accounts Vocabulary

1. What is money?

Currency used as an accepted way of exchange. We all agree it has value.

Something you use as wallpaper.

Shells, cows, etc. Things traded for something else.

Money is defined as a currency that is commonly accepted as a medium of exchange. It is a form of payment that people agree has value and can be used to purchase goods and services. Unlike other items mentioned like wallpaper or shells, money is specifically designed to serve as a means of trade and is universally recognized as a form of payment.

Explanation

Money is defined as a currency that is commonly accepted as a medium of exchange. It is a form of payment that people agree has value and can be used to purchase goods and services. Unlike other items mentioned like wallpaper or shells, money is specifically designed to serve as a means of trade and is universally recognized as a form of payment.

2. What is a "Balance"?

When you stand on one foot.

The money you won with a Lottery card.

The exact amount of money in an account.

A "balance" refers to the exact amount of money in an account. It represents the total funds available in the account, taking into account both deposits and withdrawals. This term is commonly used in banking and financial contexts to indicate the remaining funds or the current state of an account. It is important to maintain a balanced account to ensure accurate financial records and to avoid overdrawing or going into debt.

Explanation

A "balance" refers to the exact amount of money in an account. It represents the total funds available in the account, taking into account both deposits and withdrawals. This term is commonly used in banking and financial contexts to indicate the remaining funds or the current state of an account. It is important to maintain a balanced account to ensure accurate financial records and to avoid overdrawing or going into debt.

3. What is a "Savings Account"?

An account that gives you free money.

A bank account you put money into for future large purchases.

An account that looks like a pig.

A "Savings Account" is a bank account where individuals can deposit money for future large purchases. It is specifically designed to help individuals save money over time by earning interest on the deposited amount. Unlike a checking account, which is primarily used for everyday transactions, a savings account encourages individuals to set aside money for long-term goals and financial security. It does not provide free money or resemble a pig, as mentioned in the other options.

Explanation

A "Savings Account" is a bank account where individuals can deposit money for future large purchases. It is specifically designed to help individuals save money over time by earning interest on the deposited amount. Unlike a checking account, which is primarily used for everyday transactions, a savings account encourages individuals to set aside money for long-term goals and financial security. It does not provide free money or resemble a pig, as mentioned in the other options.

4. What is a "Check register"?

A book that you write in.

A way to sign up for a magazine subscription.

A paper form used to keep track of the checks written.

A check register is a paper form used to keep track of the checks written. It serves as a record of all the checks issued by an individual or a company. The register typically includes columns for the check number, date, payee, amount, and a running balance. By filling out the check register every time a check is written, one can easily monitor their spending and ensure that they have enough funds in their account to cover the checks. This helps in maintaining accurate financial records and avoiding overdrafts.

Explanation

A check register is a paper form used to keep track of the checks written. It serves as a record of all the checks issued by an individual or a company. The register typically includes columns for the check number, date, payee, amount, and a running balance. By filling out the check register every time a check is written, one can easily monitor their spending and ensure that they have enough funds in their account to cover the checks. This helps in maintaining accurate financial records and avoiding overdrafts.

5. What of the following apply for a "Check"?

A written order instructing the bank to pay money to someone.

It must have a date, amount and signature.

It must be filled out in pen, with no empty spaces.

All of the above.

A "Check" is a written order that instructs the bank to pay money to someone. It must have a date, amount, and signature to be considered valid. Additionally, it must be filled out in pen, with no empty spaces, to prevent any alterations or fraud. Therefore, all of the given statements apply to a "Check".

Explanation

A "Check" is a written order that instructs the bank to pay money to someone. It must have a date, amount, and signature to be considered valid. Additionally, it must be filled out in pen, with no empty spaces, to prevent any alterations or fraud. Therefore, all of the given statements apply to a "Check".

6. What is a "Withdrawal"?

The term "Withdrawal" refers to the action of taking money out of an account. It is the opposite of a deposit, where money is added to an account. When someone withdraws money, they are reducing the balance or amount of funds in their account. This can be done through various methods such as using an ATM, writing a check, or transferring funds electronically.

Explanation

The term "Withdrawal" refers to the action of taking money out of an account. It is the opposite of a deposit, where money is added to an account. When someone withdraws money, they are reducing the balance or amount of funds in their account. This can be done through various methods such as using an ATM, writing a check, or transferring funds electronically.

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7. What does it mean to "Deposit" money?

The term "Deposit" refers to the action of putting money into an account. When you deposit money, you are adding funds to your account balance, typically at a bank or financial institution. This can be done through various methods such as cash, checks, or electronic transfers. Depositing money allows you to store your funds securely and access them later for various transactions like withdrawals or payments.

Explanation

The term "Deposit" refers to the action of putting money into an account. When you deposit money, you are adding funds to your account balance, typically at a bank or financial institution. This can be done through various methods such as cash, checks, or electronic transfers. Depositing money allows you to store your funds securely and access them later for various transactions like withdrawals or payments.

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