Banking and Finance Correct Quiz

A method for calculating interest so that it is paid daily.

• Semiannual compounding

• Daily compounding crediting

• Quarterly compounding

• Annual compounding

Formula that can be used to calculate compound interest; A = p( 1 + r/n)nt where A is the ending balance, p is the principal or original balance, r is the interest rate, n is the number of times that interest is compounded annually, and t is the number of years.

• Both simple and compound

• Multiple choice

• None of these answers

• Compound interest formula

An account that has just one owner who is able to make account transactions.

• Joint account

• Overdraft account

• Savings account

• Single account

A record of all transactions in a checking account, including checks written, deposits made, fees paid, ATM withdrawals, and so on.

• Bank Statement

• Register

• Payee

• Journal

A statement that includes all transactions that have occurred for a period of approximately one month.

• Income statement

• Balance sheet

• Bank statement

• Credit report

A percentage of the money that is in the account over a given period of time. It is earned on the principle, or balance in a savings account.

• wages

• interest

• income

• taxes

A certain amount of money that must be kept in an account as required by that particular bank.

• Maximum balance

• Minimum balance

• Balance too large

• Starting balance

A method for calculating interest so that it is paid once a year.

• quarterly compounding

• weekly compounding

• annual compounding

• monthly compounding

The receiver of the transferred funds or the person to whom the check is written.

• payee

• payor

• drawer

• drawee

Withdrawals from a bank account.

• debit

• deposit

• credit

• none of these