BPA BANKING AND FINANCE EXAM
QUESTIONS WITH ALL ANSWERS
CORRECT
Federal reserve system - ANSWER (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 - ANSWER Amount of income left after taxes and deductions have
been taken out.
gross pay - ANSWER Amount of salary or wages earned for a certain period
of time before deductions are withheld.
collateral - ANSWER A security pledged for the repayment of a loan.
deductions - ANSWER 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 - ANSWER 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 - ANSWER Computer-generated analysis of factors characteristic
or indicative of repayment; the most common one was developed by Fair; Isaac
and Company (FICO)
, bank regulator - ANSWER 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 - ANSWER CRITERIA LENDERS AND INVESTORS USE
TO EVALUATE THE CREDITWORTHINESS OF ENTREPRENEURS
SEEKING FINANCING: CAPITAL, CAPACITY, COLLATERAL,
CHARACTER, AND CONDITIONS
credit unions - ANSWER 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 - ANSWER An act which requires lenders to inform
borrowers of all direct, indirect and true costs of credit.
reserve requirment - ANSWER 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 - ANSWER What is the name of the official
government approved website to get a free credit report?
savings account - ANSWER 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 - ANSWER A bank account against which the depositor can
drawn checks payable on demand
certificates of deposit - ANSWER you are loaning a bank money for a set
period of time and getting interest in return.
annuity - ANSWER 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;
QUESTIONS WITH ALL ANSWERS
CORRECT
Federal reserve system - ANSWER (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 - ANSWER Amount of income left after taxes and deductions have
been taken out.
gross pay - ANSWER Amount of salary or wages earned for a certain period
of time before deductions are withheld.
collateral - ANSWER A security pledged for the repayment of a loan.
deductions - ANSWER 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 - ANSWER 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 - ANSWER Computer-generated analysis of factors characteristic
or indicative of repayment; the most common one was developed by Fair; Isaac
and Company (FICO)
, bank regulator - ANSWER 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 - ANSWER CRITERIA LENDERS AND INVESTORS USE
TO EVALUATE THE CREDITWORTHINESS OF ENTREPRENEURS
SEEKING FINANCING: CAPITAL, CAPACITY, COLLATERAL,
CHARACTER, AND CONDITIONS
credit unions - ANSWER 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 - ANSWER An act which requires lenders to inform
borrowers of all direct, indirect and true costs of credit.
reserve requirment - ANSWER 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 - ANSWER What is the name of the official
government approved website to get a free credit report?
savings account - ANSWER 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 - ANSWER A bank account against which the depositor can
drawn checks payable on demand
certificates of deposit - ANSWER you are loaning a bank money for a set
period of time and getting interest in return.
annuity - ANSWER 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;
