Banking and Financial Concepts Quiz

What is an Automated Teller Machine (ATM)?

• A machine that allows depository institution customers to complete certain transactions without human assistance.

• A machine that dispenses cash only.

• A device used for online shopping.

• A tool for calculating interest rates.

Which type of account allows quick access to funds for transactions?

• Savings account

• Checking account

• Credit account

• Loan account

What is a Commercial Bank?

• A non-profit organization offering loans.

• A for-profit depository business offering financial services.

• A government agency managing taxes.

• A retail store providing credit.

What does Contactless Payment mean?

• Payment transactions completed with physical cash.

• Payment transactions completed with no physical connection between the payment device and the POS terminal.

• Payment transactions requiring a signature.

• Payment transactions using a check.

What is a Credit Union?

• A government-run bank.

• A depository institution owned by its customers.

• A type of credit card company.

• A financial advisory service.

What is a Debit Card?

• A card used for borrowing money.

• A plastic card electronically connected to the cardholder’s depository institution account.

• A card used exclusively for online purchases.

• A card that earns interest.

What is the definition of Interest?

• The amount of money in a savings account.

• The price paid for using someone else’s money.

• The fee for opening a bank account.

• The cost of a credit card.

What is an Interest Rate?

• The amount of money borrowed.

• The percentage rate used to calculate interest.

• The fee for a bank transaction.

• The cost of a debit card.

What is Mobile Banking?

• Banking services available only at physical branches.

• Apps that allow online banking access from mobile devices.

• A type of savings account.

• A method of calculating interest.

What is Online Banking?

• A service that requires visiting a bank branch.

• Allows transactions from a secured website using a username and password.

• A method of depositing checks.

• A type of credit card service.