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Worksheets

Accounting & Banking Test

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

What is the primary purpose of a bank?

a)

To sell goods

b)

To provide financial services

c)

To manufacture products

d)

To create laws

2.

What is a checking account used for?

a)

Saving money

b)

Making everyday transactions

c)

Investing in stocks

d)

Earning high interest

3.

What does the Federal Reserve do?

a)

Manages the country's education system

b)

Controls the supply of money

c)

Oversees the healthcare system

d)

Regulates international trade

4.

What is interest in banking terms? (Multiple correct answers)

a)

The cost of borrowing money

b)

A penalty for late payments

c)

A return earned from savings and investments

d)

A type of insurance

5.

What is a savings account primarily used for?

a)

Daily expenses

b)

Long-term savings

c)

Buying stocks

d)

Paying taxes

6.

What is a loan?

a)

A gift of money

b)

Money borrowed that must be repaid

c)

A type of insurance

d)

A form of currency exchange

7.

What is a budget?

a)

A plan for spending and saving money

b)

A type of bank account

c)

A financial penalty

d)

A government tax

8.

What is a credit card?

a)

A card that stores cash

b)

A card used to borrow money for purchases

c)

A card that tracks spending

d)

A card that earns interest

9.

What is the main function of the Federal Reserve?

a)

Responsible for establishing the federal budget

b)

To regulate the banking system

c)

Provides banking services to consumers

d)

Provides financial assistance to local governments

10.

What is a deposit?

a)

Money taken out of an account

b)

Money put into an account

c)

A type of loan

d)

A financial penalty

11.

What is a withdrawal?

a)

Money put into an account

b)

Money taken out of an account

c)

Closing a bank account

d)

A bank fee

12.

What is a mortgage?

a)

A loan to buy a car

b)

A loan to purchase a home

c)

A type of savings account

d)

A form of insurance

13.

What is the purpose of a bank statement?

a)

To show the history of transactions in an account

b)

To provide a list of bank employees

c)

To outline bank policies

d)

To advertise bank services

14.

What happens when too much money is in circulation? (Federal Reserve Video)

a)

Deflation

b)

Money gains value

c)

Goods cost less

d)

Inflation

15.

What is the purpose of a credit score?

a)

Predicts how likely you are to repay a loan or other debt

b)

Is the measure of your financial status

c)

Directly reflects your income, marital status, and other personal details

d)

The record of your buying habits and bank account balances

16.

What is a stock?

a)

A type of bank account

b)

A share of ownership in a company

c)

A government bond

d)

A form of currency

17.

What is inflation?

a)

A decrease in the price of goods

b)

An increase in the price of goods and services

c)

A type of bank account

d)

A form of investment

18.

What is the purpose of a central bank?

a)

To manage a country's monetary policy

b)

To provide loans to individuals

c)

To sell consumer goods

d)

To create new laws

19.

Your Mom's credit card's interest rate (APR) is 21.9%.

The minimum payment due each month is 3% of her starting balance.

Your Mom pre-orders you a PlayStation 5 Pro Console on her credit card for $741.99.

Her first payment will be due in 4 weeks. What will she be charged for interest?

a)

$16.25

b)

$21.90

c)

$162.50

d)

$222.60

20.

Your Mom's credit card's interest rate (APR) is 21.9%.

The minimum payment due each month is 3% of her starting balance.

Your Mom pre-orders you a PlayStation 5 Pro Console on her credit card for $741.99.

Her first payment will be due in 4 weeks. What will her minimum payment be?

a)

$741.99

b)

$222.60

c)

$24.49

d)

$22.26

21.

When you include the purchase price of $741.99 plus the 21.9% interest being charged, how much will the balance be on your Mom's first credit card statement?

a)

$904.49

b)

741.99

c)

$758.24

d)

$763.89

22.

Antonio does not like carrying cash or writing checks, but he wants to have access to his money in his account for daily use. What service that fits his preferences can a bank offer him?

a)

saving account

b)

Credit Card

c)

Debit Card

d)

Deposit Box