Banking Vocabulary

What is the 50-20-30 Rule in banking?

• Allocate 50% of income to necessities, 20% to savings, and 30% to discretionary spending.

• Allocate 50% of income to investments, 20% to savings, and 30% to discretionary spending.

• Divide income evenly among necessities, savings, and discretionary spending.

• Allocate 30% of income to necessities, 20% to savings, and 50% to discretionary spending.

ATM stands for Automated Teller Machine and its function is to dispense cash and perform basic banking transactions.

• Automated Teller Machine; it dispenses cash and performs basic banking transactions

• Asynchronous Transfer Mode; it manages network communications

• Automatic Teller Machine; it only monitors account balances

• Advanced Teller Module; it processes advanced banking analytics

What does the term 'Balance' refer to in banking? Select the concise answer.

• The amount of money available in an account.

• The interest rate applied by the bank.

• The transaction fee charged.

• The minimum deposit required to open an account.

A Bank Statement is a record of financial transactions over a certain period.

• A record of financial transactions over a certain period

• A legal contract between a bank and a customer

• A promotional advertisement by a bank

• A tax filing document

A Certificate Of Deposit (CD) is a type of savings account with a fixed term and fixed interest rate.

• It is a savings account with a fixed term and higher interest rate.

• It is a credit card used for purchases.

• It is an insurance policy against bank defaults.

• It is a variable rate investment option.

A Canceled Check is a check that has been processed by the bank and marked as paid.

• A check that has been processed by the bank and marked as paid.

• A check that is void and cannot be deposited.

• A check that is lost in transit.

• A check that is pending verification.

A check in banking terms is a written order directing a bank to pay money.

• A debit card

• A written order to pay

• An electronic transfer

• A bank statement

A Checkbook is used for recording financial transactions.

• Recording financial transactions

• Only for writing checks

• Counting cash

• Storing coins

A Check Cashing Store is a store that cashes checks.

• A store that deposits checks only.

• A store that cashes checks.

• A store that prints checks.

• A store that sells checks.

What is a Check Register? A check register is a tool for recording bank transactions such as checks, deposits, and withdrawals.

• A record of bank transactions.

• A tool for decorating a home.

• A musical instrument.

• A type of calculator.