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Banking and Personal Finance Terms

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Debt refers to

a)

money owed to another person or institution

b)

extra income earned from a side job

c)

cash kept at home for emergencies

d)

a gift of money that never needs repayment

2.

CD (banking) is best described as

a)

a time deposit that earns a fixed interest rate until a set maturity date

b)

a debit card used to withdraw cash from an ATM

c)

a checking account that allows unlimited transactions

d)

an online wallet for instant payments

3.

A savings account is

a)

a bank account that earns interest and is used to store money over time

b)

a loan that must be repaid with monthly installments

c)

a prepaid card holding a fixed balance

d)

an account for daily spending that typically earns no interest

4.

A checking account is primarily used for

a)

everyday transactions like paying bills and using a debit card

b)

locking money for a set term to earn a fixed rate

c)

investing in stocks and bonds

d)

holding cash that cannot be withdrawn

5.

A credit card lets you

a)

borrow up to a limit and repay later, with interest on unpaid balances

b)

spend only the money already in your checking account

c)

deposit cash to earn a fixed rate until maturity

d)

send money that never needs to be repaid

6.

Credit score is

a)

a number that represents how likely you are to repay borrowed money

b)

the amount of cash in your savings account

c)

the interest rate set by your bank for CDs

d)

a list of all purchases made with a credit card

7.

Interest rate means

a)

the percentage charged or paid on the principal amount over time

b)

the total amount borrowed in a loan

c)

the maximum limit on a credit card

d)

the fee for opening a bank account

8.

A loan is

a)

money borrowed that must be repaid, usually with interest

b)

a type of savings account with ATM access

c)

a grant that never requires repayment

d)

a prepaid card with a fixed balance

9.

Student loans are

a)

loans used to pay for education, often with repayment deferred until after school

b)

grants that never need to be repaid

c)

credit cards offered to college students only

d)

scholarships based on sports performance

10.

Budgeting is the process of

a)

planning how to allocate income toward spending, saving, and bills

b)

borrowing money to pay for large purchases

c)

earning interest by locking funds in a CD

d)

tracking only entertainment expenses