FBLA BANKING & FINANCIAL SYSTEMS |
COMPLETE STUDY GUIDE & PRACTICE
QUESTIONS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,banking The issuing, exchanging, loaning, and custody of money and the extension of
credit.
payer The person who writes a check.
2-for-1 stock split When each stockholder receives an additional share for each share held, but
the value of each share is reduced by half: two shares now equal the original
value of one share before the split.
3-for-2 stock split When each stockholder receives an additional share for every two shares held,
but the value of each share is reduced by 2/3: three shares now equal the
original value of two shares before the split.
,credit card A card issued by a financial company giving the holder an option to borrow
funds, usually at point of sale. They have higher interest rates (around 19% per
year) and are primarily used for short-term financing. Interest usually begins
one month after a purchase is made and borrowing limits are pre-set according
to the individual's credit rating.
One of the most popular and widely accepted forms of payment for consumer
goods and services in the U.S.
debit card An electronic card issued by a bank which allows bank clients access to their
account to withdraw cash or pay for goods and services. This form of payment
also removes the need for checks as it immediately transfers money from the
client's account to the business account.
The major benefits to this type of card are convenience and security.
Securities Investor Protection Corporation Insures investors accounts for up to $500,000 (including $100,00 in cash), in the
event of fraud or the bankruptcy of a member securities brokerage.
add-on clause Provision contained in an installment contract. An add-on clause creates a
security interest in the earlier goods until full payment is made on the new
goods. By this clause, the earlier purchases serve as the security for new
purchases.
false True or false? Purchasers of automobile liability insurance can reduce their
premium costs by agreeing to a deductible.
, liquid assets Assets that are easily convertible to cash, such as those in savings accounts,
stocks, and US savings bonds.
higher interest rates A tight money policy followed by the Federal Reserve would most likely result
in:
renewable term life insurance Best for short-term life insurance. Policies that start out with low premiums, but
increases each time the term is renewed. Policyholders are guaranteed renewal
for succeeding terms even if they have a serious illness.
Truth in Lending Act Lenders are required to disclose the true costs of credit to borrowers,
including the total amount of interest charged over the life of a loan and the
amounts of monthly payments by this federal law:
COMPLETE STUDY GUIDE & PRACTICE
QUESTIONS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,banking The issuing, exchanging, loaning, and custody of money and the extension of
credit.
payer The person who writes a check.
2-for-1 stock split When each stockholder receives an additional share for each share held, but
the value of each share is reduced by half: two shares now equal the original
value of one share before the split.
3-for-2 stock split When each stockholder receives an additional share for every two shares held,
but the value of each share is reduced by 2/3: three shares now equal the
original value of two shares before the split.
,credit card A card issued by a financial company giving the holder an option to borrow
funds, usually at point of sale. They have higher interest rates (around 19% per
year) and are primarily used for short-term financing. Interest usually begins
one month after a purchase is made and borrowing limits are pre-set according
to the individual's credit rating.
One of the most popular and widely accepted forms of payment for consumer
goods and services in the U.S.
debit card An electronic card issued by a bank which allows bank clients access to their
account to withdraw cash or pay for goods and services. This form of payment
also removes the need for checks as it immediately transfers money from the
client's account to the business account.
The major benefits to this type of card are convenience and security.
Securities Investor Protection Corporation Insures investors accounts for up to $500,000 (including $100,00 in cash), in the
event of fraud or the bankruptcy of a member securities brokerage.
add-on clause Provision contained in an installment contract. An add-on clause creates a
security interest in the earlier goods until full payment is made on the new
goods. By this clause, the earlier purchases serve as the security for new
purchases.
false True or false? Purchasers of automobile liability insurance can reduce their
premium costs by agreeing to a deductible.
, liquid assets Assets that are easily convertible to cash, such as those in savings accounts,
stocks, and US savings bonds.
higher interest rates A tight money policy followed by the Federal Reserve would most likely result
in:
renewable term life insurance Best for short-term life insurance. Policies that start out with low premiums, but
increases each time the term is renewed. Policyholders are guaranteed renewal
for succeeding terms even if they have a serious illness.
Truth in Lending Act Lenders are required to disclose the true costs of credit to borrowers,
including the total amount of interest charged over the life of a loan and the
amounts of monthly payments by this federal law:
