BANKING AND FINANCE (BPA) TEST
QUESTIONS AND ANSWERS 2025
principle - ANSWER calculation for simple interest is _________ x interest
rate x time
cooperation - ANSWER the three C's of credit include all except for
-cooperation
-character
-capacity
-collateral
tax liability - ANSWER total amount of taxes owed
direct deposit - ANSWER an automatic deposit of net pay offered by many
companies to an employee's designated bank account
overdraft protection - ANSWER an automatic loan made to an account if the
balance will not cover a transaction made on the account
bank reconciliation - ANSWER a report that accounts for the differences
between a bank statement and a check book balance
line of credit - ANSWER maximum amount of money a creditor will allow a
credit user to borrow
payee - ANSWER person, business, or organization receiving a check
premium - ANSWER price paid for an insurance policy
depositers - ANSWER people who deposit money into banks
bull market - ANSWER a period of time when investors are confident in the
economy and stock prices are rising
, budget - ANSWER a spending plan for the use of money over time based on
goals and expected income
drawee - ANSWER the bank that you write your checks from
special - ANSWER endorsement is used to transfer a check to another party
investment - ANSWER an asset you buy that increases your wealth over time,
but carries the risk of loss
prime rate - ANSWER rate of interest a bank charges their best customers
certified check - ANSWER personal check with a bank's guarantee the check
will be paid
capital gain - ANSWER income earned from selling an asset for more than the
purchase price
beneficiary - ANSWER person named by the policy holder to receive the death
benefit of an insurance policy
grace period - ANSWER time between the billing date and the start of interest
charges
liability - ANSWER financial obligation that a person currently owes or will
owe in the future
credit card - ANSWER an example of an open end credit account
electronic funds transfer (EFT) - ANSWER movement of money electronically
from one financial institution to another
net income/ total assets - ANSWER return on assets is found by
credit union - ANSWER not-for-profit financial institution
truth in lending act (TILA) - ANSWER guarantees that all info about costs of a
loan will be provided in writing to consumers
QUESTIONS AND ANSWERS 2025
principle - ANSWER calculation for simple interest is _________ x interest
rate x time
cooperation - ANSWER the three C's of credit include all except for
-cooperation
-character
-capacity
-collateral
tax liability - ANSWER total amount of taxes owed
direct deposit - ANSWER an automatic deposit of net pay offered by many
companies to an employee's designated bank account
overdraft protection - ANSWER an automatic loan made to an account if the
balance will not cover a transaction made on the account
bank reconciliation - ANSWER a report that accounts for the differences
between a bank statement and a check book balance
line of credit - ANSWER maximum amount of money a creditor will allow a
credit user to borrow
payee - ANSWER person, business, or organization receiving a check
premium - ANSWER price paid for an insurance policy
depositers - ANSWER people who deposit money into banks
bull market - ANSWER a period of time when investors are confident in the
economy and stock prices are rising
, budget - ANSWER a spending plan for the use of money over time based on
goals and expected income
drawee - ANSWER the bank that you write your checks from
special - ANSWER endorsement is used to transfer a check to another party
investment - ANSWER an asset you buy that increases your wealth over time,
but carries the risk of loss
prime rate - ANSWER rate of interest a bank charges their best customers
certified check - ANSWER personal check with a bank's guarantee the check
will be paid
capital gain - ANSWER income earned from selling an asset for more than the
purchase price
beneficiary - ANSWER person named by the policy holder to receive the death
benefit of an insurance policy
grace period - ANSWER time between the billing date and the start of interest
charges
liability - ANSWER financial obligation that a person currently owes or will
owe in the future
credit card - ANSWER an example of an open end credit account
electronic funds transfer (EFT) - ANSWER movement of money electronically
from one financial institution to another
net income/ total assets - ANSWER return on assets is found by
credit union - ANSWER not-for-profit financial institution
truth in lending act (TILA) - ANSWER guarantees that all info about costs of a
loan will be provided in writing to consumers
