BPA BANKING AND FINANCE QUESTIONS AND
ANSWERS
Federal reserve system - Answers - (WW) 1913 , independent agency in the federal
executive branch. Established under the Federal Reserve Act of 1913, the Federal
Reserve System ("Fed") is the central bank of the United States. One of the most
powerful agencies in the government, it makes and administers policy for national credit
and monetary policies. The Fed supervises and regulates bank functions across the
country, thus maintaining a sound and stable banking industry, able to deal with a wide
range of domestic and international financial demands
net pay - Answers - Amount of income left after taxes and deductions have been taken
out.
gross pay - Answers - Amount of salary or wages earned for a certain period of time
before deductions are withheld.
collateral - Answers - A security pledged for the repayment of a loan.
deductions - Answers - An amount of money taken from your paycheck every payday
(usually for things such as federal and state income taxes, employment taxes, social
security taxes, workers compensation coverage, and health insurance payments)
liabillities - Answers - represents amounts owed to creditors; creditors claims
(obligations or debts of the business) on total assets for resources or services provided
to the business in the past
credit scores - Answers - Computer-generated analysis of factors characteristic or
indicative of repayment; the most common one was developed by Fair; Isaac and
Company (FICO)
bank regulator - Answers - entry, branching, type of assets and liabilities permitted,
financial services that could be offered, interest. rates that could be paid on deposits.
five cs of credit - Answers - CRITERIA LENDERS AND INVESTORS USE TO
EVALUATE THE CREDITWORTHINESS OF ENTREPRENEURS SEEKING
FINANCING: CAPITAL, CAPACITY, COLLATERAL, CHARACTER, AND CONDITIONS
credit unions - Answers - A financial institution owned by its members that provides
savings and checking accounts and other services to its membership at low fees.
, truth in lending act - Answers - An act which requires lenders to inform borrowers of all
direct, indirect and true costs of credit.
reserve requirment - Answers - a Central bank regulation that sets the minimum
reserves each Commercial bank must hold to customer deposits and notes i.e the
amount that the bank surrenders with the central bank.
annualcreditreport.com - Answers - What is the name of the official government
approved website to get a free credit report?
savings account - Answers - A safe, low-return investment available from banks. There
is generally no minimum deposit for this type of account, making it perfect for kids and
teens just starting out.
checking account - Answers - A bank account against which the depositor can drawn
checks payable on demand
certificates of deposit - Answers - you are loaning a bank money for a set period of time
and getting interest in return.
annuity - Answers - Form of contract sold by life insurance companies that guarantees a
fixed or variable payment to the annuitant at some future time, usually retirement. In a
FIXED ANNUITY the amount will ultimately be paid out in regular installments varying
only with the payout method elected. In a VARIABLE ANNUITY, the payout is based on
a guaranteed number of units; unit values and payments depend on the value of the
underlying investments. All earnings in the annuity grow TAX-DEFERRED.
mutual fund - Answers - A group of financial investments often of a specific kind or
category, managed by professionals, with many individual or institutional investors.
bank teller - Answers - Worker who handles bank deposits and withdrawals, sell
traveler's checks and foreign currency, accept loan payments, prepare certified checks
or money orders, and may handle other duties.
overdraft - Answers - A check written for more money than your account contains
arrears - Answers - (n.,pl.) unpaid or overdue debts; an unfinished duty
affinity card - Answers - a credit card that promotes an organization's brand each time a
cardholder uses it
access check - Answers - looks like regular checks; supplied by the credit card
company and, when written, are treated like a purchase
cashier's check - Answers - Check purchased at a bank or other financial institution.
Frequently required form of payment (as opposed to a personal check).
ANSWERS
Federal reserve system - Answers - (WW) 1913 , independent agency in the federal
executive branch. Established under the Federal Reserve Act of 1913, the Federal
Reserve System ("Fed") is the central bank of the United States. One of the most
powerful agencies in the government, it makes and administers policy for national credit
and monetary policies. The Fed supervises and regulates bank functions across the
country, thus maintaining a sound and stable banking industry, able to deal with a wide
range of domestic and international financial demands
net pay - Answers - Amount of income left after taxes and deductions have been taken
out.
gross pay - Answers - Amount of salary or wages earned for a certain period of time
before deductions are withheld.
collateral - Answers - A security pledged for the repayment of a loan.
deductions - Answers - An amount of money taken from your paycheck every payday
(usually for things such as federal and state income taxes, employment taxes, social
security taxes, workers compensation coverage, and health insurance payments)
liabillities - Answers - represents amounts owed to creditors; creditors claims
(obligations or debts of the business) on total assets for resources or services provided
to the business in the past
credit scores - Answers - Computer-generated analysis of factors characteristic or
indicative of repayment; the most common one was developed by Fair; Isaac and
Company (FICO)
bank regulator - Answers - entry, branching, type of assets and liabilities permitted,
financial services that could be offered, interest. rates that could be paid on deposits.
five cs of credit - Answers - CRITERIA LENDERS AND INVESTORS USE TO
EVALUATE THE CREDITWORTHINESS OF ENTREPRENEURS SEEKING
FINANCING: CAPITAL, CAPACITY, COLLATERAL, CHARACTER, AND CONDITIONS
credit unions - Answers - A financial institution owned by its members that provides
savings and checking accounts and other services to its membership at low fees.
, truth in lending act - Answers - An act which requires lenders to inform borrowers of all
direct, indirect and true costs of credit.
reserve requirment - Answers - a Central bank regulation that sets the minimum
reserves each Commercial bank must hold to customer deposits and notes i.e the
amount that the bank surrenders with the central bank.
annualcreditreport.com - Answers - What is the name of the official government
approved website to get a free credit report?
savings account - Answers - A safe, low-return investment available from banks. There
is generally no minimum deposit for this type of account, making it perfect for kids and
teens just starting out.
checking account - Answers - A bank account against which the depositor can drawn
checks payable on demand
certificates of deposit - Answers - you are loaning a bank money for a set period of time
and getting interest in return.
annuity - Answers - Form of contract sold by life insurance companies that guarantees a
fixed or variable payment to the annuitant at some future time, usually retirement. In a
FIXED ANNUITY the amount will ultimately be paid out in regular installments varying
only with the payout method elected. In a VARIABLE ANNUITY, the payout is based on
a guaranteed number of units; unit values and payments depend on the value of the
underlying investments. All earnings in the annuity grow TAX-DEFERRED.
mutual fund - Answers - A group of financial investments often of a specific kind or
category, managed by professionals, with many individual or institutional investors.
bank teller - Answers - Worker who handles bank deposits and withdrawals, sell
traveler's checks and foreign currency, accept loan payments, prepare certified checks
or money orders, and may handle other duties.
overdraft - Answers - A check written for more money than your account contains
arrears - Answers - (n.,pl.) unpaid or overdue debts; an unfinished duty
affinity card - Answers - a credit card that promotes an organization's brand each time a
cardholder uses it
access check - Answers - looks like regular checks; supplied by the credit card
company and, when written, are treated like a purchase
cashier's check - Answers - Check purchased at a bank or other financial institution.
Frequently required form of payment (as opposed to a personal check).
