Financial Terminology Quiz

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Questions and Answers

What is the Bottom Line defined as in the text?

  • A fee charged when a check bounces due to insufficient funds
  • A form that instructs a financial institution to transfer money
  • The percentage rate showing interest earned in a year
  • The difference between earnings and debts of a business (correct)

What does a Credit Score represent according to the text?

  • A number indicating borrowing history and creditworthiness (correct)
  • Payouts to investors based on profit
  • A rate showing interest earned after a year
  • An official form instructing a financial institution to transfer money

What is the purpose of an official Check as mentioned in the text?

  • To allow earning interest on transactions
  • To charge a fee when a check bounces due to insufficient funds
  • To represent interest earned in a year
  • To transfer a specific amount of money from one account to another (correct)

What is the role of FDIC in the text?

<p>Insuring deposits in banks and examining their safety (D)</p> Signup and view all the answers

What happens if a check bounces according to the text?

<p>The recipient is charged an insufficient funds fee (C)</p> Signup and view all the answers

What does a Debit Card allow you to do according to the text?

<p>Pay for things using money from a checking account (D)</p> Signup and view all the answers

How is Checking Account described in the text?

<p>A transaction account usually earning interest (D)</p> Signup and view all the answers

'What do Dividends represent according to the text?'

<p>'Profit-based payouts to an investor' (D)</p> Signup and view all the answers

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