Banking Concepts Quizs

What is the purpose of automatic bill paying?

• To automatically pay bills from bank accounts

• To manually track expenses

• To increase credit card debt

• To avoid paying taxes

What does ATM stand for?

• Automated Teller Machine

• Automatic Transaction Machine

• Anytime Money Machine

• Automated Transfer Method

How is compound interest calculated?

• On the initial principal only

• On both the initial principal and accumulated interest

• On the accumulated interest only

• On a fixed percentage of the principal

What is an ABA routing number?

• A number identifying the financial institution

• A code for international wire transfers

• A type of bank account number

• A number used for credit card transactions

What is a direct deposit?

• A manual transfer of funds

• An automatic deposit of wages or benefits

• A type of bank loan

• A withdrawal from a savings account

What is a voided check?

• A check that has been cashed

• A check of no value

• A check that is post-dated

• A check that is written in error

What is a safe deposit box used for?

• Storing valuable documents or items securely

• Keeping cash in a bank

• Hiding personal belongings at home

• Storing food supplies

What does the Federal Deposit Insurance Corporation (FDIC) insure?

• Accounts up to $250,000 per depositor

• Accounts up to $100,000 per depositor

• Accounts up to $500,000 per depositor

• Accounts up to $1,000,000 per depositor

What is a bounced check?

• A check that cannot be processed due to insufficient funds

• A check that has been successfully processed

• A check that is written for an amount greater than the account balance

• A check that has been lost or stolen

What is a deposit?

• A sum of money placed in an account

• A type of loan agreement

• A withdrawal from a bank account

• A fee charged by the bank