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Banking Chapter 5: Deposits in Banks

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

The price paid for the use of money

a)

principal

b)

interest

c)

APR

d)

APY

2.

Effective rate of interest when compounding is factored in.

a)

annual percentage rate

b)

annual percentage yield

c)

annual percentage return

3.

Savings account earning a competitive interest rate from invested deposits with check writing privileges.

a)

certificate of deposit

b)

passbook savings account

c)

statement savings account

d)

Money Market Deposit Account

4.

Deposit held for or maturing at a specified time

a)

time deposit

b)

transaction account

c)

demand deposit account

5.

Account that allows transactions to occur at any time in any number

a)

money market deposit account

b)

time deposit

c)

transaction account

6.

Deposit payable on demand whenever the depositor chooses

a)

demand deposit

b)

certificate of deposit

c)

time deposit

7.

Savings instrument with fixed interest rate and fixed maturity date

a)

Asset management account

b)

Express checking

c)

passbook savings account

d)

certificate of deposit

8.

Return calculated by adding interest to principal for next interval.

a)

simple interest

b)

compound interest

c)

APR

d)

APY

9.

Nominal rate on which interest is calculated per year.

a)

APR

b)

APY

c)

compound interest

10.

A transaction made between banks

a)

transaction account

b)

governing documents

c)

interbank transaction

d)

statement savings account

11.

Account-specific documents outlining the legal rights and responsibilities of both the bank and the account holder.

a)

governing documents

b)

interbank transaction

c)

time deposit

d)

Check 21

12.

A check that is dated six months or more before it is presented for payment or deposit

a)

Check 21

b)

post-dated check

c)

stale check

d)

insufficient fund check