Unit 3 Quiz: Consumer Preferences, Banking, and Contracts

What type of bank account is typically used for everyday transactions and does not earn typically interest?

• Savings Account

• Checking Account

• Certificate of Deposit

• Money Market Account

Which of the following is NOT an essential element of a contract?

• Offer

• Acceptance

• Mutual Agreement

• Advertisement

What is the term for the percentage charged on a loan or paid on savings?

• Principal

• Interest Rate

• Dividend

• Premium

Which type of bank account offers higher interest rates but, typically requires a higher minimum balance?

• Checking Account

• Custodial Account

• Money Market Account

• Certificate of Deposit

If a savings account offers an annual interest rate of 5%, what is the interest earned on a principal of $1000 after one year?

• $50

• $100

• $150

• $200

Which type of bank account is designed for long-term savings with a fixed interest rate and maturity date?

• Checking Account

• Savings Account

• Certificate of Deposit

• Money Market Account

A interest-bearing deposit account held at a bank or other financial institution

• Checking account
• Education Savings Account

• Savings account
• Credit card

An account in which money is kept in a bank or credit union for safekeeping. Money can be easily withdrawn by writing checks, using an ATM, or debit card. 

• Savings Account
• Line of Credit
• Checking Account
• Money Market Account

Interested calculated not only on the original principal, but also on the interest accrued.

• Compound Interest

• Noncompound interest

• Accrual interest

• Credit History

This organization is sanctioned by the US government to regulate banking throughout the United States.

• Federal Reserve
• Federal Bank of Washington

• National Treasury Fund

• Congressional Reserve