Review Banking

Front

What does the 'A' represent in the compound interest formula?

Back

Balance

Front

True or False: Deposits that do not appear in a bank statement are called outstanding deposits.

Back

True

Front

Reconcile the following check register balance: $550.94 with earned interest of $4.36, a service charge of $5.50, and an ATM withdrawal of $150.

Back

$399.80

Front

If David invests $10,000 in a savings account at 3.5% simple interest for 7 years, how much will he have in the account?

Back

$12,450

Front

What is the extra money a bank gives you for putting money in a savings account called?

Back

Interest

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal x Rate x Time

Front

What is the difference between a savings account and a checking account?

Back

A savings account is for saving money and earns interest, while a checking account is for daily transactions and typically does not earn interest.

Front

What is an outstanding check?

Back

A check that has been written but not yet cleared by the bank.

Front

What is the purpose of reconciling a bank statement?

Back

To ensure that the check register and bank statement balances match.

Front

What does 'principal' mean in banking terms?

Back

The original sum of money invested or loaned.