Consumers Chapter 7 Flashcard

Front

What is the term for the decimal used when writing a check?

Back

And

Front

How do you calculate Simple Interest?

Back

Simple Interest = Principal x Rate x Time

Front

What is the fee charged by a bank for maintaining a checking account called?

Back

Service Charge

Front

How do you find the reconciled balance of a bank account?

Back

Reconciled Balance = Check Register Balance - Outstanding Checks + Outstanding Deposits - Service Charges

Front

What is the term for the amount of money invested or the current balance?

Back

Principal

Front

What is the formula for calculating the total amount after interest is applied?

Back

Total Amount = Principal + Simple Interest

Front

What does the term 'outstanding checks' refer to?

Back

Checks that have been written but not yet cleared by the bank.

Front

What is the purpose of a check register?

Back

To keep track of all transactions made with a checking account.

Front

What is the significance of the statement ending balance?

Back

It reflects the total amount in the account at the end of the statement period.

Front

How do you calculate the total outstanding checks?

Back

Add up all the amounts of the outstanding checks.