Consumers Chapters 7-8 FINAL Exam

Front

What is a checking account register?

Back

A checking account register is a record-keeping tool used to track all transactions made in a checking account, including deposits, withdrawals, and balances.

Front

What does it mean to make a deposit?

Back

Making a deposit means adding money to your bank account.

Front

How do you calculate compound interest?

Back

Compound interest can be calculated using the formula: A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate, n is the number of times that interest is compounded per year, and t is the number of years.

Front

How should you write $105.75 on a check?

Back

You should write 'One hundred five dollars and 75 cents' on a check.

Front

What is a service charge in banking?

Back

A service charge is a fee that a bank charges for maintaining a checking account, which can be applied monthly.

Front

What is the difference between a deposit and a withdrawal?

Back

A deposit is adding money to an account, while a withdrawal is taking money out of an account.

Front

What is the purpose of a bank statement?

Back

A bank statement is a summary of all transactions in a bank account over a specific period, showing deposits, withdrawals, and the ending balance.

Front

What is an overdraft?

Back

An overdraft occurs when you withdraw more money from your account than is available, resulting in a negative balance.

Front

What is the formula for calculating the total amount in a savings account with compound interest?

Back

The total amount can be calculated using the formula: A = P(1 + r/n)^(nt), where A is the total amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.

Front

What is a finance charge?

Back

A finance charge is a fee for borrowing money, typically expressed as an interest rate.