Unit 2 Study Guide

Front

Are bank checking and savings accounts insured by the FDIC up to the legal limit of $250,000 per depositor per bank?

Back

True

Front

A cash withdrawal from an ATM should not be recorded in a manually maintained check register.

Back

False

Front

The Rule of 72 provides a quick formula for computing how long it will take to double money invested at a given interest rate. True or False?

Back

True

Front

Three major types of risk faced by consumers are personal risk, risk of financial loss, and risk from natural disasters. True or False?

Back

False

Front

Risk transfer might be achieved by purchasing insurance.

Back

True

Front

The amount of money that a person has to spend after needs are met is called discretionary income.

Back

True

Front

A favorable variance occurs when you earn or save more than you estimated or spend less than you planned.

Back

True

Front

Keeping good records will help you prepare a better budget.

Back

True

Front

You should reconcile your bank statement at least once a year.

Back

False

Front

A flexible spending account allows employees to set aside money to help pay for medical expenses that insurance does not cover.

Back

True