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Unit 2: Banking vocabulary pt. 1

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following best defines the term "Balance" in banking?

a)

The amount of money you have in your bank account

b)

Money you put into your account

c)

A card that allows the holder to make purchases without cash by borrowing money

d)

A written, dated, and signed order to the bank that tells it to pay a definite sum of money to a payee

2.

What is the primary function of an ATM (Automatic Teller Machine)?

a)

To sign the back of a check made out to you so it can be cashed or deposited

b)

Allows a person to manage a bank account holder’s funds through actions such as withdrawing or depositing money, viewing account balances, etc.

c)

A card that is directly connected to your checking account

d)

A fee paid to you for keeping your money in an account

3.

Which banking term refers to "money you put into your account"?

a)

Deposit

b)

Interest

c)

Principal

d)

Endorse

4.

A card that is directly connected to your checking account and enables you to conduct ATM transactions and make purchases instead of using cash or writing a check is called:

a)

Credit Card

b)

Debit Card

c)

PIN

d)

Bank Statement

5.

If you receive a check made out to you and you sign the back of it so it can be cashed or deposited, what is this process called?

a)

Endorse

b)

Deposit

c)

Balance

d)

Principal

6.

Which term refers to the Personal Identification Number needed to use an ATM card?

a)

Principal

b)

PIN

c)

Statement

d)

Compound Interest

7.

What is the original amount of money saved or invested, separate from interest or earnings, called?

a)

Principal

b)

Interest

c)

Statement

d)

FDIC

8.

Which document is prepared monthly by your financial institution and shows all of the transactions related to your account?

a)

Deposit Slip

b)

Statement

c)

PIN

d)

NCUA

9.

What is the main difference between the FDIC and the NCUA?

a)

FDIC insures bank deposits, NCUA insures credit union deposits

b)

FDIC insures credit union deposits, NCUA insures bank deposits

c)

Both insure only up to $100,000

d)

Both are private organizations

10.

If you reinvest earned interest back into the principal so that interest is calculated on both the initial amount and the accumulated interest, what is this process called?

a)

Simple Interest

b)

Compound Interest

c)

Principal

d)

Statement

11.

A fee paid to you for keeping your money in an account OR a fee charged to you for a loan or credit card

a)

Simple Interest

b)

Late fee

c)

Bouncing a check

d)

Interest

12.

The Federal Deposit Insurance Corporation will insure this amount of money in the event the bank fails.

a)

$100,000

b)

$150,000

c)

$250,000

d)

$2,500,000

13.

A(n). (a)   is a banking service in which a customer deposits money and writes checks to withdraw at his or her convenience.

14.

Which type of account allows your deposited money to be withdrawn at any time by writing a check?

a)

Savings Account

b)

Certificate of Deposit

c)

Certified Cash Account

d)

Checking Account

15.

You would utilize this type of purchase if you did not have cash and were not using your own money, but using BORROWED money

a)

Debit Card

b)

Credit Card

c)

Personal Check

d)

Cash Money