BANKING TOPIC TEST EXAM 2025
QUESTIONS AND ANSWERS
In the formula I=P·r·t, what does r stand for?
a.
Rate: the percent that interest is paid annually as a decimal
b.
Ratio: the size of the interest interval compared to time
c.
Return: how much money you end up earning
d.
Reserves: how much money you have in the investment - ANS A
Approximately how much principal would need to be placed into an account earning 3.575%
interest compounded quarterly so that it has an accumulated value of $68,000 at the end of 30
years?
a.
$23,706
b.
$23,377
c.
$52,069
d.
1 @COPYRIGHT THESTAR 2025/2026
, $58,944 - ANS B
Roberta's monthly bank statement says that she has a balance of 386.29, but Roberta's check
register says that her balance is 370.77. Which of the following are still outstanding?
I. A $78.17 check to the electric company
II. A $16.15 deposit from Roberta's roommate
III. A $22.67 check to the grocery store
IV. A $62.65 deposit from Roberta's tax return
a.
I and II
b.
II and III
c.
II and IV
d.
I and IV - ANS D
The same amount of principal is invested in different accounts earning the same interest rate.
Which of the following accounts would have the greatest accumulated value at the end of one
year?
a.
An account earning no interest
b.
An account earning simple interest
c.
An account earning interest compounded annually
d.
An account earning interest compounded daily - ANS D
2 @COPYRIGHT THESTAR 2025/2026
QUESTIONS AND ANSWERS
In the formula I=P·r·t, what does r stand for?
a.
Rate: the percent that interest is paid annually as a decimal
b.
Ratio: the size of the interest interval compared to time
c.
Return: how much money you end up earning
d.
Reserves: how much money you have in the investment - ANS A
Approximately how much principal would need to be placed into an account earning 3.575%
interest compounded quarterly so that it has an accumulated value of $68,000 at the end of 30
years?
a.
$23,706
b.
$23,377
c.
$52,069
d.
1 @COPYRIGHT THESTAR 2025/2026
, $58,944 - ANS B
Roberta's monthly bank statement says that she has a balance of 386.29, but Roberta's check
register says that her balance is 370.77. Which of the following are still outstanding?
I. A $78.17 check to the electric company
II. A $16.15 deposit from Roberta's roommate
III. A $22.67 check to the grocery store
IV. A $62.65 deposit from Roberta's tax return
a.
I and II
b.
II and III
c.
II and IV
d.
I and IV - ANS D
The same amount of principal is invested in different accounts earning the same interest rate.
Which of the following accounts would have the greatest accumulated value at the end of one
year?
a.
An account earning no interest
b.
An account earning simple interest
c.
An account earning interest compounded annually
d.
An account earning interest compounded daily - ANS D
2 @COPYRIGHT THESTAR 2025/2026
