Basic Banking

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.

• TRUE

• TRUE

Which of the following is main type of non-tradable deposits?

• Savings accounts

• Term deposits

• None of the above

• All of the above

What is characteristic of the balance sheet?

• Total assets = Total liabilities + Capital

• Total liabilities = Total assets + Capital

• Total assets = Total liabilities - Capital

• Capital = Total liabilities - Total assets

Checkable deposits are demand deposits, the property of the owner, the liabilities of the bank.

• TRUE

• FALSE

Loans are less liquid than other bank accounts, they cannot be converted to cash until due for repayment.

• TRUE

• FALSE

How many type of bank reserve?

• 1

• 2

• 3

• 4

The interest on a loan is an example of GOOD INTEREST.

• TRUE

• FALSE

Putting money into an account is known as?

• Sinking

• Depositing

• Placing

• Withdrawing

Which of the following best describes a LOAN ?

• Money borrowed that can be paid back if one feels like it.

• Money borrowed

• Money borrowed with the expectation of paying it back in a timely manner.

• Money gifted to someone with no expectation of payback

What are the primary source of bank liabilities?

• Chekable deposits

• Borrowings

• Non-tradable deposits

• Bank capitals