Business Software Applications (BSA)
Final Study Set Questions with complete
solution
Interest - correct answer The amount owed for borrowing money
Daily Compounding - correct answer Anthony is deciding between different
savings accounts at his bank. He has four options, based on how frequently
interest compounds. Which should he choose if he wants the best rate of
return on his interest?
Compound; highest - correct answer To earn as much interest as possible,
you should open a savings account that earns _______ interest and has the
______ interest rate.
Longer time period usually equals higher interest rates. - correct answer
What is the typical relationship between time and interest rate?
(1) Selecting an account with a high interest rate.
(2) Leaving his money in the account for long period of time. - correct answer
John just opened a savings account and wants to maximize the amount of
interest he earns. Which of the following actions would enable him to earn
MORE interest?
Certificate of Deposit (CD) - correct answer Tamara has $500 she is looking
to save for a class trip. She wants to earn the most possible interest and will
not need access to her money for a full year. Which type of savings account
will be best for Tamara?
, Compounding daily - correct answer You are opening a savings account that
earns compound interest. Which compounding frequency will earn you the
MOST money?
Food - correct answer Which of the following is considered a "need"?
food, pizza, gatorade, or fruit
(1) Certificate of Deposit
(2) Money Market Account - correct answer ______ and ______ are types of
savings vehicle?
Checking Account - correct answer Which type of account typically has very
high liquidity, low or no interest, and low minimum balance?
(1) Supervising the Reserve banks
(2) Maintaining a stable banking system
(3) Setting the nation's monetary policy - correct answer The Federal Reserve
is responsible for?
Credit Union - correct answer Which type of financial institution typically has
membership requirements?
(1) Reserve Banks
(2) The Federal Open Market Committee (FOMC)
(3) Board of Governors - correct answer The three parts of the Federal
Reserve System?
Overdraft fee - correct answer Which of the following fees would likely be the
highest?
Final Study Set Questions with complete
solution
Interest - correct answer The amount owed for borrowing money
Daily Compounding - correct answer Anthony is deciding between different
savings accounts at his bank. He has four options, based on how frequently
interest compounds. Which should he choose if he wants the best rate of
return on his interest?
Compound; highest - correct answer To earn as much interest as possible,
you should open a savings account that earns _______ interest and has the
______ interest rate.
Longer time period usually equals higher interest rates. - correct answer
What is the typical relationship between time and interest rate?
(1) Selecting an account with a high interest rate.
(2) Leaving his money in the account for long period of time. - correct answer
John just opened a savings account and wants to maximize the amount of
interest he earns. Which of the following actions would enable him to earn
MORE interest?
Certificate of Deposit (CD) - correct answer Tamara has $500 she is looking
to save for a class trip. She wants to earn the most possible interest and will
not need access to her money for a full year. Which type of savings account
will be best for Tamara?
, Compounding daily - correct answer You are opening a savings account that
earns compound interest. Which compounding frequency will earn you the
MOST money?
Food - correct answer Which of the following is considered a "need"?
food, pizza, gatorade, or fruit
(1) Certificate of Deposit
(2) Money Market Account - correct answer ______ and ______ are types of
savings vehicle?
Checking Account - correct answer Which type of account typically has very
high liquidity, low or no interest, and low minimum balance?
(1) Supervising the Reserve banks
(2) Maintaining a stable banking system
(3) Setting the nation's monetary policy - correct answer The Federal Reserve
is responsible for?
Credit Union - correct answer Which type of financial institution typically has
membership requirements?
(1) Reserve Banks
(2) The Federal Open Market Committee (FOMC)
(3) Board of Governors - correct answer The three parts of the Federal
Reserve System?
Overdraft fee - correct answer Which of the following fees would likely be the
highest?
