ESP111.UNIT12

Which term describes the ease with which assets can be converted to cash?

• Deposit
• Liquidity
• Solvency
• Overdraft

If someone uses their car as security to get a loan, what is this security called?

• Overdraft
• Collateral
• Maturity date
• Deposit

A borrower has agreed to repay a lender over time for purchasing a property. What type of loan is this?

• Overdraft
• Mortgage
• Deposit account
• Current account

What happens if a purchase is made exceeding the funds in a checking account without overdraft protection?

• Solvency
• Maturity
• Overdraft
• Liquidity

If someone needs an account mainly for daily transactions, which type should they open?

• Savings account
• Deposit account
• Current account
• Mortgage

Which account type limits the number of monthly withdrawals to encourage saving?

• Savings account
• Current account
• Overdraft account
• Deposit account

What term describes a bank’s ability to cover potential losses and avoid failure?

• Liquidity
• Solvency
• Collateral
• Overdraft

Which of these describes a date when a financial instrument reaches the end of its term?

• Maturity date
• Solvency
• Overdraft date
• Collateral date

Which account generally offers higher interest rates but limits transaction types?

• Current account
• Mortgage account
• Savings account
• Deposit account

What does it mean to “deposit” money in a bank?

• To withdraw money from an account
• To use money as collateral for a loan
• To place money in an account for safekeeping
• To pay interest on a loan