Prep Test All Questions 100

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

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

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

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

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

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

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

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

How can Cryptocurrencies be described?

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