Finance Final Exam Prep-Questions &
Answers.
Account Fee - CORRECT ANSWER The amount charged by a financial institution for the services they
provide in managing the account.
This may also be called the monthly service fee.
Automated Teller Machine (ATM) - CORRECT ANSWER A specialized computer used by bank customers
to manage their money, for
example, to get cash, make deposits, or transfer money between accounts
Bad Credit - CORRECT ANSWER A situation in which lenders believe that, due to a borrower's poor
history of repaying his or her debts,
further loans to this person would be especially risky.
Account Balance - CORRECT ANSWER The exact amount of money contained in a deposit account
according to the bank. This figure may be different that the amount shown in your own credit records
because of the checks you have written or deposits you have made that have not been processed by the
financial institution.
Bank - CORRECT ANSWER A financial institution that handles money, including keeping it for saving or
commercial purposes, and
exchanging, investing, and supplying it for loans.
Bank account - CORRECT ANSWER A banking service allowing a customer's money to be handled and
tracked. Common bank accounts
are savings and checking accounts.
Budget - CORRECT ANSWER A monthly or yearly spending and savings plan developed by a person,
family, or business. A written budget helps people to be better money managers and to prepare for
major or unexpected expenses.
, Cancelled check - CORRECT ANSWER A customer's check that the bank has paid and charged against the
check writer's account. Cancelled
checks may be returned to the check writer with the monthly bank statement, or they may be kept on
film by the bank.
Charge Card - CORRECT ANSWER Similar to a credit card, except that a charge card requires the card
holder to pay off the entire balance
monthly
Check - CORRECT ANSWER A written order instructing the bank to pay a specific amount of money to a
specific person or entity. The check must contain a date, payee (person, company, or organization to be
paid), amount, and an authorized signature.
Check Register - CORRECT ANSWER A small notepad you receive when you open a checking account for
the purpose of tracking your
checks, deposits, and current balance.
Checking Account - CORRECT ANSWER A bank account that allows a customer to deposit and withdraw
money and write checks. Using a
checking account can be safer and more convenient than handling cash.
Co-signer - CORRECT ANSWER A second person who signs your credit or loan application. Just like the
borrower, the co-signer on a loan is equally responsible for repaying the debt. Also called a co-borrower.
Credit - CORRECT ANSWER When a bank or business allows its customers to purchase goods or services
on the promise of future payment. Also used to describe any item that increases the balance in a bank
account. Deposits and interest payments are both examples of credits.
credit card - CORRECT ANSWER Any card that may be used repeatedly to borrow money or buy
products and services on credit. Credit cards are issued by financial institutions, retail stores, and other
businesses. A credit card offers the card holder revolving credit that can be paid monthly with as little as
the required minimum payment.
Answers.
Account Fee - CORRECT ANSWER The amount charged by a financial institution for the services they
provide in managing the account.
This may also be called the monthly service fee.
Automated Teller Machine (ATM) - CORRECT ANSWER A specialized computer used by bank customers
to manage their money, for
example, to get cash, make deposits, or transfer money between accounts
Bad Credit - CORRECT ANSWER A situation in which lenders believe that, due to a borrower's poor
history of repaying his or her debts,
further loans to this person would be especially risky.
Account Balance - CORRECT ANSWER The exact amount of money contained in a deposit account
according to the bank. This figure may be different that the amount shown in your own credit records
because of the checks you have written or deposits you have made that have not been processed by the
financial institution.
Bank - CORRECT ANSWER A financial institution that handles money, including keeping it for saving or
commercial purposes, and
exchanging, investing, and supplying it for loans.
Bank account - CORRECT ANSWER A banking service allowing a customer's money to be handled and
tracked. Common bank accounts
are savings and checking accounts.
Budget - CORRECT ANSWER A monthly or yearly spending and savings plan developed by a person,
family, or business. A written budget helps people to be better money managers and to prepare for
major or unexpected expenses.
, Cancelled check - CORRECT ANSWER A customer's check that the bank has paid and charged against the
check writer's account. Cancelled
checks may be returned to the check writer with the monthly bank statement, or they may be kept on
film by the bank.
Charge Card - CORRECT ANSWER Similar to a credit card, except that a charge card requires the card
holder to pay off the entire balance
monthly
Check - CORRECT ANSWER A written order instructing the bank to pay a specific amount of money to a
specific person or entity. The check must contain a date, payee (person, company, or organization to be
paid), amount, and an authorized signature.
Check Register - CORRECT ANSWER A small notepad you receive when you open a checking account for
the purpose of tracking your
checks, deposits, and current balance.
Checking Account - CORRECT ANSWER A bank account that allows a customer to deposit and withdraw
money and write checks. Using a
checking account can be safer and more convenient than handling cash.
Co-signer - CORRECT ANSWER A second person who signs your credit or loan application. Just like the
borrower, the co-signer on a loan is equally responsible for repaying the debt. Also called a co-borrower.
Credit - CORRECT ANSWER When a bank or business allows its customers to purchase goods or services
on the promise of future payment. Also used to describe any item that increases the balance in a bank
account. Deposits and interest payments are both examples of credits.
credit card - CORRECT ANSWER Any card that may be used repeatedly to borrow money or buy
products and services on credit. Credit cards are issued by financial institutions, retail stores, and other
businesses. A credit card offers the card holder revolving credit that can be paid monthly with as little as
the required minimum payment.
