WorksheetsUnit 2 & 3 Banking & Investing Review
Total questions: 31
Worksheet time: 16mins
Match the following checking accounts to their descriptions.
Premium account
For customers who want a reliable basic account
Online account
For customers with no need for in-person banking
Standard account
For business owners
Business account
For customers with large sums of money
Which of the following allows customers to borrow money from a financial institution up to a certain limit?
Debit card
Credit card
Trust account
Safety deposit box
The electronic movement of money from one account to another is known as a(n) (a) .
Electronic funds transfer
Electronic movement of money
Technology funds
Financial electronic transaction
Which of the following is the definition of multifactor authentication?
requiring more than one method of credential authentication to verify a user's identity for a transaction.
Restricting access to bank locations to authorized personnel only.
Storing cash in a fire-proof safe.
Training employees to identify fraudulent banknotes.
Which of the following choices describes the first step to taking out a loan?
Gathering all personal assets
Assigning a beneficiary
recording all transactions
Comparing institution loan rates
(a) allows customers to have their paycheck electronically deposited directly into their account.
Electronic withdrawal
Direct deposit
Deposit slip
Online payment
Which of the following is a line of credit issued to customers to cover checks or debits exceeding the amount in their account?
Automated teller machine
Debt restructuring
Overdraft protection
Cash flow budgeting
Which of the following allows individuals to borrow against their home's value to finance major expenses?
Home equity loan
Mortgage loan
Restructuring loan
Refinancing loan
(a) provide financial coverage to protect individuals or organizations against possible adverse events in exchange for premium payments.
Insurance companies
Brokerage firms
Retail banks
Investment unions
Which agency protects individuals and businesses by maintaining the stability of the nation's banking system, mainly by insuring bank deposits?
Securities and Exchange Commission (SEC)
Federal Reserve System (FRS)
Federal Deposit Insurance Corporation
(FDIC)
Internal Revenue Service (IRS)
Wyatt needs to go to a financial institution to open a checking account; however, he wants to use the services of a nonprofit financial institution. Which financial institution should Wyatt visit?
Commercial bank
Credit union
Retail bank
Investment bank
Mercy is ready to purchase her first house, but she will require the use of a loan. She will most likely require a (a) loan.
Home equity
Auto
Mortgage
Beneficiary
Which institution assists individuals in buying and selling securities among investors?
Insurance companies
Investment banks
Mortgage companies
Brokerage firms
How much interest would an individual pay to borrow $700 for nine months at ten percent?
$47.50
$54.50
$55.25
$57.25
What is the future value of $900 at 7% after five years?
$1,262.30
$12,349.60
$1,167.40
$1,018.10
What is the present value of $3,500 earning 15% for 8 years?
$1,144.50
$$1157.25
$1189.75
$1235.50
Which of the following describes the degree to which an asset can be quickly bought in the market without affecting the asset's price?
liquidity
cash flow
value
interest
Which of the following involves restricting expenses and keeping the unspent money in an individual’s custody to accumulate it?
Saving
Investing
Compounding
Evaluating
Which of the following is interest calculated on the initial principal and the accumulated interest of previous periods?
Compound interest
Simple interest
Fixed interest
Variable interest
Which of the following is a saving certificate with a fixed maturity date and specified fixed interest rate?
Certificate of deposit
Money market fund
High-yield bank account
Annuity
Which of the following is an employer-sponsored retirement savings plan?
401K plan
Annuity
Money market fund
Savings account
Which of the following is a long-term goal?
Saving for a college education
Purchasing household furniture
Saving up for a family vacation
Establishing an emergency fund
Which of the following is a correct statement about mutual funds?
It is made up of a pool of funds collected from many investors
It is managed by investors
It is more risky than individual stocks and bonds
It puts assets together into one security
Which of the following types of returns are inversely related to interest rates?
Bonus
Bond
Mutual fund
Which of the following is a risk management technique which spreads assets into a portfolio with a wide variety of investments?
Compounding
Diversification
Appreciation
Investment
__________ is the allocation of money or other resources, such as time, with the expectation of some future benefit.
Investing
Saving
Spending
Liquidity
Which of the following is a loan an investor makes to an organization in exchange for interest payments over a specified term plus the repayment of principal at the bond’s maturity date?
Stock
401K
Bond
Annuity
Which of the following is interest computed on the principal, excluding previously earned interest?
Compound interest
Simple interest
Fixed interest
Variable interest
Which of the following is the potential risk of losing something of value?
Return
Reward
Risk
Requirement
(a) refers to land, as well as any physical property affixed to the land.
Real estate
Mutual fund
Stocks and bonds
Precious metals
Match the following terms to their descriptions.
Commercial banks
Financial institutions which provide security and convenience to customers
Insurance companies
Corporations which pool risk by collecting premiums from a large group of people who want to protect themselves against a particular loss
Financial institutions
Financial intermediaries which perform a variety of services for businesses and some government
Investment banks
Companies engaged in the business of dealing with monetary transactions, such as deposits, loans, investments and currency exchange
