Types of Bank Accounts and Functions

What is a deposit?

• A sum of money securely stored at a bank.

• A type of loan given to customers.

• A fee charged for account maintenance.

• A withdrawal made from an account.

What is a credit card?

• A card that allows the holder to borrow funds to pay for goods and services with the agreement to pay back the borrowed amount plus interest.

• A card that allows the holder to deposit money and earn interest over time.

• A card used exclusively for online shopping and transactions.

• A card that provides cash rewards for every purchase made.

What is a check?

• A written order directing a bank to pay a specific amount from a person's account.

• A type of bank account that earns interest.

• A document used to apply for a loan.

• A form of digital currency.

What is a wire transfer?

• A physical transfer of cash between banks.

• An electronic transfer of funds across a network administered by hundreds of banks around the world.

• A method of sending checks through the mail.

• A type of cryptocurrency transaction.

What does liquidity mean?

• The ability to buy and sell assets quickly without affecting their price.

• The ease and speed by which an asset can be converted into cash, without materially affecting its market price.

• The total value of all assets owned by an individual or company.

• The process of converting cash into other forms of assets.

What is an interest rate?

• The fee paid to a bank for holding your money.

• The percentage of a loan charged as interest to the borrower, typically expressed as an annual percentage.

• The amount of money you earn from investments over time.

• The total cost of borrowing money, including fees and interest.

What is a loan?

• A sum of money borrowed with the expectation to be paid back with interest over a specified period of time.

• A type of investment that guarantees returns.

• A financial gift that does not need to be repaid.

• A service provided by banks to manage savings accounts.

What is a financial institution that receives and stores deposits called?

• Bank

• Credit Union

• Investment Firm

• Insurance Company

What is a savings account?

• A type of account used for daily transactions.

• A bank account that earns interest on the money deposited and is used for saving rather than daily transactions.

• An account that allows unlimited withdrawals without penalties.

• A loan account that requires monthly payments.

What is a balance in a bank account?

• The total amount of money available in a bank or financial account at any given time.

• The interest rate applied to the account balance.

• The minimum amount required to open a bank account.

• The total number of transactions made in a month.