Wise PreTest Mr. Phillips

What is a card issued by a financial institution, that allows you to withdraw money from your accounts or pay for purchases by deducting funds directly from your accounts?

• debit card
• credit card

A nonprofit financial institution that is owned by its members and organized for their benefit

• credit union
• commercial bank
• hometown bank
• mortgage center

A savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return.

• certificate of deposit
• savings account
• money buried in backyard
• a savings jar

A savings account in which the interest rate varies as market rates change

• money market account
• business account
• standard savings account
• none of these

A certificate of deposit is a savings account in which the interest rate varies as market rates change.

• false
• true

The process in which interest is earned on both the principal and any previously earned interest

• compounding
• none of these
• rate of return
• annual percentage yield

Amount of interest that a financial institution would pay on a $100 deposit, after compounding, for one year

• annual percentage yield
• annual percentage rate
• rate of return
• compounding

A financial institution that traditionally specialized in savings accounts and mortgage loans.

• savings and loan association
• credit union
• commercial bank
• none of these

Direct deposit is having pay deposited directly into a designated bank account.

• true
• false

Automatic payment: your bank will withdraw the amount of your monthly payment or bill from your bank account.

• true
• false