Intro to Banking and Finance Questions
and Verified Solutions 100% Correct
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Savings Account - Answer: Bank account where you can save your money. Money in this account earns
interest. Usually a very small percentage of interest
Checking Account - Answer: Money in this account is very fluid meaning money can be deposited and
withdrawn easily
Budgeting - Answer: planning for the amount of money to be spent in a certain amount of time. It is
based on your income and expenses.
401K - Answer: A type of retirement fund
Certificate of Deposit (CD) - Answer: Time deposits sold by banks, like a savings account except if you
draw too early, you will be subject to penalty fees and they offer a higher rate of return
Money Market - Answer: contributions by many investors in stocks, bond, and other money market
instruments
FDIC Federal Deposit Insurance Corporation - Answer: U.S. agency that insures banks, a way congress
provides stability and confidence in the banking system
Credit - Answer: The ability of a customer to obtain goods and services before payment
Interest - Answer: Price to borrow money
Loan - Answer: Borrowed Money, Mortgage
and Verified Solutions 100% Correct
Already Graded A+
Savings Account - Answer: Bank account where you can save your money. Money in this account earns
interest. Usually a very small percentage of interest
Checking Account - Answer: Money in this account is very fluid meaning money can be deposited and
withdrawn easily
Budgeting - Answer: planning for the amount of money to be spent in a certain amount of time. It is
based on your income and expenses.
401K - Answer: A type of retirement fund
Certificate of Deposit (CD) - Answer: Time deposits sold by banks, like a savings account except if you
draw too early, you will be subject to penalty fees and they offer a higher rate of return
Money Market - Answer: contributions by many investors in stocks, bond, and other money market
instruments
FDIC Federal Deposit Insurance Corporation - Answer: U.S. agency that insures banks, a way congress
provides stability and confidence in the banking system
Credit - Answer: The ability of a customer to obtain goods and services before payment
Interest - Answer: Price to borrow money
Loan - Answer: Borrowed Money, Mortgage
