Unit 2

Question Answer
generous gift of money or time to a person or organization Charitable Donation
same amount of money earned on a set interval basis, such as monthly orquarterly Fixed Income
amount of money earned is not the same each pay period Variable Income
bill, such as monthly rent, which is the same each month Fixed Expense
bill, such as a utility bill, which is a different amount each month Variable Expense
money without a specific purpose left over each month after all bills havebeen paid Discretionary Expense
amount of a paycheck one gets to keep after taxes and other deductions aretaken out Take-home Pay
mail, usually consisting of advertising material and requests for donations, sentto a large number of possible customers or contributors at one time Direct Mail
stealing of a person’s financial information, such as credit cards andSocial Security number, with the intent to make purchases under the person’sidentity Identity Theft
phony business deal created to get money from people with intention ofgiving anything in return scam
requests for money, services, donations, etc. solicitations
strong, usually irresistible impulse to perform an act against a person’susual behavior Compulsive Behavior
sudden, involuntary inclination prompting one to take an action which is notwell thought-out Impulse
schedule of recurrent times in any regular system of preparing or sending bills Billing cycle
(business or institution) initiated or operated for the prpose of making a profit For-profit
not established for the purpose of making a profit Non Profit
cash withdrawn by using a debit card and entering a PIN in an ATM ATM Withdrawals
log of deposits and withdrawals from a checking account Checkbook Register
balance of an account on the day the bank runs the bank statement Closing Balance
money put into an account Deposit
acronym for electronic fund transfer; money transferred from one account toanother without a person having to manually write a check or make a deposit EFT
specific listing of individual pieces or units of information Itemization
The primary purpose of a spending plan is to achieve which of the following goals? To help you see the amount of income you have each month, pay all of your expenses, and put money into savings
. Which of the following is NOT a way to earn income? Volunteering at church
A monthly utility bill is an example of which of the following expenses? Variable
A rent payment is an example of which type of expense? Fixed
Donating to the local animal shelter is an example of which of the following types of expenses? Discretionary
Which records can NOT give a thief access to your personal information? Gift card to a department store
If your identity is stolen, who becomes responsible for restoring your credit to good standing? you
Where is a more popular place a thief would go to try to steal your personal information? your trash
. How is it best to get rid of information you receive in the mail? Use a shredder before placing it in the trash
Why do stores intentionally put small and inexpensive items near the checkout lines? So shoppers will buy them without much thought
. Which of the following types of goals best describes something you can achieve in more than 12 months, but less than five years? Intermediate goals
. Which of the following types of goals best describes something you can achieve in more than five years? Long-term goals
Which of the following types of goals best describes something you can achieve in less than 12 months? Short-term goals
Which of the following is the first step in developing your goals? Identify your personal goals
Which of the following should NOT be considered when choosing a bank? The size of the bank
Which type of bank is most widely used? Commercial banks
Which type of bank has customers who are also owners? Credit unions
Which type of bank offers full investment services as its main business? Brokerage firms
Which type of bank does not have an actual physical location? Virtual banks
What is the purpose of providing a bank statement to a customer? To provide a snapshot of activity on the account during a specific time period
Which of the following is NOT one of the main components of a bank statement? Listing of deposits made during the previous three months
. You should keep all deposit receipts as well as receipts for purchases until which of the following happens? Reconciliation process
Why is the closing date listed at the top of your statement important information? It provides you with a cutoff date for transactions included in the statement.
The opening balance of your most recent statement should equal which of the following? Closing balance of your last statement
What are the two features of online and mobile banking? Convenience and security
. Standard banking hours used to be 9 a.m. to 3 p.m., Monday through Friday. These hours meant what for their customers? Access to their money was limited to these hours.
Which of the following is NOT one of the advantages of online and mobile banking? Manual bank reconciliation is still required.
Which of the following is NOT a security feature? Use of birthdates as your PIN
PIN is an acronym which stands for which of the following? Personal Identification Number
Why is it a good idea to treat your savings account as a fixed expense each month? Money can be deposited before it is used for discretionary spending.
In which of the following choices are the expenses in the right order according to how they must be paid each month? Pay the fixed and variable expenses, then pay the discretionary expenses
. Which of the following entities do NOT have access to your credit report? Potential employers who are looking for new employees with good credit
Which of the following is the first step you should take if your identity is stolen? Contact the bank and credit card companies where you hold accounts
The location of which of the following is important when considering a bank? ATMs
Which piece of information will you most likely NOT have receipts for when reconciling your bank statement manually? Interest earned on an account
The conversion of a message into code is known as which of the following? Encryption

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