unit (2)

Look at the table below showing an example of a checkbook ledger. Malcolm has several receipts from recent transactions that he entered in his records. The receipts include an ATM receipt for an $80.00 deposit, a grocery store receipt for $25.50, and a paycheck deposit slip for $650.00. When he finishes entering his transactions, Malcolm realizes that his balance is incorrect. Assuming that Malcolm had no beginning balance, what should his correct balance be?

$704.50

Look at the table below showing an example of a checkbook ledger. According to the table, what is Omar's bank balance?

$761.25

What is the best reason for Jacinta to have a savings account in addition to a checking account?

A savings account keeps her savings separate from her spending money.

This is a table that could be used to maintain a record of account transactions. It is similar to what is found in a checkbook ledger. Some of its column headings are missing. How should these columns be labeled?

Check Number, Description, Balance

Karina keeps excellent records and always knows precisely how much is in her bank account. However, when she receives her bank statement, she's surprised to see that she has been charged a $5.00 overdraft fee. After reviewing her well-kept records, she cannot find anything that is incorrect. Which would be the best action for Karina to take?

Check her records against her bank statement.

Which of these is an advantage of checking accounts?

Checking accounts allow convenient ways to deposit or withdraw funds.

Why do prices increase when demand for a product is high?

Companies know that people will be willing to spend more to get an in-demand product.

What is a major difference between retail banks and credit unions?

Retail banks manage a person's money, while credit unions focus on providing loans.

What is one benefit of purchasing saving bonds?

Saving bonds are purchased from the government and guaranteed to increase in value.

Alex has not been keeping his banking records up to date. On his latest bank statement, he found that he had been charged an overdraft fee for writing a bad check. In addition to his being charged a fee, which of these is another possible consequence of an overdraft?

The merchant who received his check will expect repayment and a penalty fee.

Sofia has saved $10,000. She wants to be sure that she is earning interest on her money and can add to her savings. She also wants to be able to access her money if the need should arise. Which type of account is most suitable for Sofia's needs?

a money market account

Read the scenario. Brad has a steady job, earns a solid income, and plans to live in a nearby city for the long term. He is looking to purchase both a car and a place to live, and he is very interested in building up equity and credit. Which of the following illustrates the most economically sound choice for Brad?

buying both a car and a home

The most economical way to purchase large items, such as furniture, is to buy with

cash

What does reconciling an account involve?

checking one's financial records against the bank's

Many checking accounts offer multiple ways of accessing money in addition to checks. Which of these can be used to access money in a checking account?

debit card

When you buy in bulk, the price per individual item

decreases

Building equity in a home is a good thing because

equity in a home increases the homeowner's assets.

Sara would like to open a bank account. What will she need to do this? Check all that apply.

identification card money to start the account proof of address

What is advertising used for? Check all that apply.

influencing consumer tastes increasing product awareness promoting company branding

Mr. and Mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottles. Which of the following makes the most economic sense?

one case of 24 sodas at $18.50

This chart shows the actual pricing history for three items.

smartphone

Where do banks get money to lend to borrowers?

their depositors

Which of these is the best reason for Nina to monitor her bank account statements online or on her cell phone app?

to know how much money she has for budgeting

What is not a potential risk of purchasing a used car?

used cars can have lower initial cost

At what point does buying in bulk stop being a wise spending choice?

when the consumer buys more than is needed