Prep Test All Questions 100

Front

What method allows immediate deduction from your checking account? Options: Debit Card, Credit Transaction, Prepaid Card, CD

Back

Debit Card

Front

How do Banks make money? Options: By taking in deposits, paying interest on savings accounts and loans, By taking in deposits, paying surcharge on savings accts, charging on loans, taking deposits, paying debts on savings accounts, charging loan interest, Taking deposits, paying surcharge on savings, charge interest on transfers

Back

By taking in deposits, paying interest on savings accounts and loans

Front

Which type of Bank Account will pay the highest rate of interest? Options: Checking Account, Savings Account, Money Market Account, Certificate of Deposit (CD)

Back

Certificate of Deposit (CD)

Front

Why do online banks typically pay more interest than physical banks?

Back

They do not have the overhead expenses of a physical bank.

Front

Which institution is a not-for-profit business? Options: Brokerage Firm, Commercial Bank, Credit Union, Community Bank

Back

Credit Union

Front

Which characteristics is a quality of a credit union but NOT of a commercial bank? Options: Can transfer funds, Is owned by its members, Makes loans, Accepts deposits

Back

Is owned by its members

Front

Which product could have a penalty for withdrawal of funds? Options: Regular Savings Account, Savings Bond, Checking Account, Certificate of Deposit

Back

Certificate of Deposit

Front

What business would MOST LIKELY be approved for an UNSECURED loan? Options: One that has just declared bankruptcy, One that is long-standing and successful, One that has been in bankruptcy one or more years, One that has been open for 3 months or less

Back

One that is long-standing and successful

Front

How can Cryptocurrencies be described?

Back

Digital Currencies exchanged peer to peer

Front

How does a bank reconcile its balance at the end of the day?

Back

Debits equal Credits