Question 1

Which of the following best describes the purpose of the Rule of 72 in personal finance?

Accepted Answer

To estimate how many years it will take for your money to double at a given annual interest rate using the formula $$	ext{Years} = \frac{72}{	ext{Interest Rate}}$$

Question 2

A customer writes a check for $200, but the payee has not yet cashed or deposited it. On the bank statement, this check is considered:

Accepted Answer

An outstanding check

Question 3

If you want to compare the cost of two different brands of laundry detergent sold in different sized containers, which financial concept should you use?

Accepted Answer

Unit price

Question 4

Which of the following is a key difference between a money market savings account and a regular savings account?

Accepted Answer

Money market savings accounts typically allow check writing and debit card privileges.

Question 5

A bank customer receives a notification about suspicious activity on their account. This is known as:

Accepted Answer

An unusual activity alert

Question 6

Which of the following best describes 'simple interest'?

Accepted Answer

Interest calculated only on the principal amount using the formula $$I = P 	imes r 	imes t$$

Question 7

A person who does not use or have access to traditional financial services is referred to as:

Accepted Answer

Unbanked

Question 8

Which of the following is NOT a feature of an online savings account?

Accepted Answer

Physical bank branch access

Question 9

If you make more than 6 withdrawals from your savings account in a month, you may be charged a:

Accepted Answer

Transaction fee

Question 10

Which of the following best describes 'purchasing power'?

Accepted Answer

The amount of goods and services that money can buy, which can decrease due to inflation

Question 11

A customer sets up an automatic transfer to move $100 from their checking to savings account every payday before paying bills. This is an example of:

Accepted Answer

Pay yourself first

Question 12

Which federal agency insures deposits in U.S. credit unions up to $250,000 per individual depositor?

Accepted Answer

National Credit Union Administration

Question 13

A customer uses their bank’s app to deposit a check by taking a photo of it. This process is called:

Accepted Answer

Mobile deposit

Question 14

Which of the following scenarios would most likely result in an overdraft fee?

Accepted Answer

A customer writes a check for more than their account balance, and the bank allows the transaction.

Question 15

Which of the following best describes a money order?

Accepted Answer

A certificate issued by a bank or government that allows the payee to receive cash on demand

Question 16

If a person has a bank account but frequently uses alternative financial services such as check cashing, they are considered:

Accepted Answer

Under banked

Question 17

Which of the following is the correct formula for calculating simple interest?

Accepted Answer

$$I = P 	imes r 	imes t$$

Question 18

A customer wants to send money instantly and securely from their bank account in the U.S. to a friend’s account in another bank. Which method should they use?

Accepted Answer

Wire transfer

Question 19

Which of the following best describes 'wealth' as used in financial accounting?

Accepted Answer

The measurement of assets minus liabilities, also called net worth

Question 20

A customer wants to ensure their records match the bank’s records for their account. What process should they use?

Accepted Answer

Reconcile

Banking Vocab #2

스터디 가이드 - 연습 문제

학습 가이드 - 플래시카드