Banking and Finance Quiz

What is a Savings Account?

• An account with a fixed period of deposit and a fixed interest rate.

• An account in which the bank pays interest for the use of the money deposited in the account.

• An account that offers no interest on the deposited money.

• An account where money is kept for investment purposes only.

What does the term 'Interest' refer to in banking?

• The fee for using the bank's services.

• The amount of money borrowed from the bank.

• A percentage of the money that is in an account that a bank pays on some accounts.

• The fixed amount of money that must be kept in an account.

What is the 'Principal' in financial terms?

• The interest rate charged by the bank.

• The total amount of money after interest is added.

• The balance, or amount of money in an account, or amount borrowed.

• The minimum amount of money that must be kept in a bank account.

What is a Statement Savings account?

• An account that provides a statement annually.

• A high-interest account with a large minimum balance requirement.

• A basic checking account with no interest.

• An account where you receive a monthly statement showing all activity including deposits, withdrawals, interest earned and any fees.

What is a Money Market Account?

• An account with a fixed interest rate and no minimum balance requirement.

• An account that has a higher interest rate, but usually requires a greater initial deposit and a greater minimum balance requirement.

• An account that offers investment advice for stock market trading.

• An account that restricts the number of transactions per month.

What is a Certificate of Deposit (CD)?

• A document that provides proof of ownership of a certain amount of shares in a company.

• A certificate that states you have a specific sum on deposit and guarantees the payment of a fixed interest rate until maturity.

• A certificate that insures your deposits in the bank up to a certain amount.

• A certificate that entitles the holder to receive interest payments from a bond issued by a corporation or government.

What are "Outstanding Checks"?

• Checks that have been cleared and recorded in the bank statement

• Checks that do not appear on the bank statement

• The process of verifying the bank's record to ensure accuracy

• The amount of money in a checking account at the end of a statement period

What is the "Ending Balance" in a checking account?

• The process of verifying the bank's record to ensure accuracy

• The amount of money in a checking account at the beginning of a statement period

• A specified date at which interest is paid on a CD

• The amount of money in a checking account at the end of a statement period

What is a "Bank Statement"?

• A specified date at which interest is paid on a CD

• The amount of money in a checking account at the end of a statement period

• A statement that includes all transactions that have occurred for a period of approximately 1 month

• The process of verifying the bank's record to ensure accuracy

What is "Balance Reconciling"?

• The amount of money in a checking account at the end of a statement period

• A specified date at which interest is paid on a CD

• Checks that do not appear on the bank statement

• The process of verifying the bank's record to make sure no mistakes have been made