WorksheetsBanking Terms: A-L
Total questions: 30
Worksheet time: 15mins
Which statement best describes the 50-20-30 Rule?
50% to savings, 20% to debt, 30% to necessities
50% to necessities, 20% to saving and debt repayment, 30% to flexible spending
50% to flexible spending, 20% to necessities, 30% to savings
50% to investing, 20% to taxes, 30% to savings
What does an ATM primarily allow a bank account holder to do?
Borrow money without interest
Manage account funds such as withdrawing or depositing and viewing balances
Open new credit lines
Order checks and deposit slips only
Balance is defined as:
Total money you owe to the bank
The amount of money you have in your bank account
The maximum you can withdraw per day
Money available after taxes only
Which document shows all transactions related to your account for the month?
Check register
Bank statement
Deposit slip
Canceled check
A Certificate of Deposit (CD) is best described as:
A form you fill out to credit money to your account
A lump-sum deposit that earns interest and is untouched for a predetermined period
A record of checks written and ATM transactions
A business that exchanges checks for cash for a fee
Which term refers to a check that has been paid or cleared by the bank and will appear on your bank statement?
Postdated check
Canceled check
Certified check
Bounced check
What is the main purpose of a check register?
To order new checks from the bank
To keep track of checks written, card transactions, deposits, and withdrawals
To apply for a loan
To verify your identity at a check cashing store
Compound interest means:
Interest calculated only on the initial principal
Interest added to the principal so future interest is earned on both principal and accumulated interest
Interest paid only at the end of the term
Interest that applies only to loans
Which statement correctly contrasts credit and debit?
Credit is a sum of money deducted FROM an account; debit is money deposited INTO an account
Credit is a sum of money deposited INTO an account; debit is a sum of money deducted FROM an account
Both credit and debit mean depositing money
Credit and debit both mean borrowing money
Demand-pull inflation occurs when:
Production costs increase while demand stays the same
Supply increases while demand decreases
Demand increases while supply is the same
Both supply and demand decrease
Which alert helps you manage overdraft risk by informing you when your checking balance falls below a set amount?
Fraud alert
Payment reminder
Low Balance Alert
Interest rate alert
What is the required certain amount of money that must be kept in an account by a particular financial institution called?
Principal
Minimum Balance
Outstanding Deposit
Unit Price
Which banking tool lets you deposit checks to your bank account using your mobile device?
Mobile Deposit
Traveler's Check
Signature Card
Online Savings Account
A Money Market Savings Account is best described as which of the following?
A checking account with unlimited check writing
A type of savings account that may allow debit card and check writing privileges
A prepaid card not linked to a bank
An investment account with no withdrawal limits
What does the National Credit Union Administration (NCUA) insure?
Bank deposits up to $250,000 per account
Investments in mutual funds
Deposits in U.S. credit unions up to $250,000 per individual depositor
All online payment transactions
Which consumer banking technology allows you to schedule and make payments over the internet?
Online Bill Pay
Overdraft Coverage
Reconcile
PIN
An Online Savings Account typically offers higher interest rates and is managed how?
In person with a teller only
Entirely online with no physical bank branch
Through ATMs only
By prepaid cards only
A fee charged when an account lacks funds to cover a withdrawal, but the bank allows the transaction to go through anyway, is called what?
Maintenance Fee
Transaction Fee
Overdraft Fee
Reconcile Fee
Overdraft Coverage is described as which type of product?
An insurance policy for all purchases
A loan banks offer when you try to withdraw more funds than you have, usually for a fee and with interest
A savings account that limits withdrawals
A budgeting tool for comparing prices
Which person is the payee on a check?
The person who writes the check
The person to whom the check is made payable
The bank teller who cashes the check
The account holder's employer
Which saving habit means putting a fixed amount of income into savings before paying monthly bills or making purchases?
Reconcile
Pay Yourself First
Postdate
Underbanked
What does PIN stand for and what is it used for according to the material?
Personal Income Number; filing taxes
Personal Identification Number; needed to use an ATM card
Private Identification Note; signing checks
Public Identity Number; opening bank accounts
Purchasing Power is defined as which of the following?
The total amount of money in your account
The number of goods and services that money can buy, which can weaken due to inflation
The limit on ATM withdrawals per day
The maximum credit limit offered
What common rule helps estimate how many years it will take money to double based on the interest rate?
Rule of 10
Rule of 72
Rule of 100
Rule of Inflation
Simple Interest is interest paid on which amount?
Principal and previous interest
Principal alone
Outstanding balance only
Minimum balance only
A Transaction Fee may be charged when withdrawals from your savings account exceed which federal limit described in the material?
Three per month
Four per month
Six free withdrawals and transfers per month
Unlimited with no limit
Which term describes a person who does not use or does not have access to traditional financial services?
Underbanked
Unbanked
Payee
Principal
Which term describes a person who has a bank account but often relies on alternative financial services such as check cashing?
Underbanked
Unbanked
Overdrafted
Insured
What does Unit Price represent?
Total cart cost at checkout
The cost for one item or measurement to compare products for a better deal
The sales tax rate
The minimum purchase requirement
Which alert notifies you when suspicious activity occurs in your account?
Overdraft Alert
Unusual Activity Alert
Transaction Fee Notice
Maintenance Fee Warning
