Banking and Finance (145) 2025/2026 QUESTIONS AND
ANSWERS GUARANTEE A+
c - A(n) _______ is a report that accounts for the differences between a bank statement and a
checkbook balance.
a. annual report
b. endorsement
c. bank reconciliation
d. bank report
a - A computer-based system that moves money from one account to another without writing a
check or using cash is a(n) _________.
a. EFT
b. NSF
c. ATM
d. FDIC
b - The person who writes a check is referred to as the _________.
a. payee
b. drawer
c. drawee
d. payer
d - The value of a house, less the amount still owed on the money borrowed to purchase it, is
called the __________.
a. mortgage
b. spread
c. points
,d. equity
d - A type of debt that allows you to borrow money up to a set limit without having to make more
than the minimum payment each month is a(n) ______________.
a. installment loan
b. unsecured loan
c. secured loan
d. revolving loan
a - The 9-digit number printed on a check that identifies the bank that holds the checking account
and the Federal Reserve District the bank is located in is called the ____________.
a. transit/routing number
b. account number
c. MICR number
d. NSF number
c - Credit Unions have the ability to offer _____________ then commercial banks.
a. higher interest rates on loans
b. Fewer financial services
c. higher interest on savings
b. lower interest on savings
b - In a lease agreement, a tenant may have to pay the landlord a security deposit to __________.
a. increase the value of the private property
b. guard against any financial loss
c. pay for monthly utilities
d. bsecure a particular rental
,b - Which of the following accounts is the least liquid?
a. interest bearing checking account
b. certificate of deposit
c. checking account
d. savings account
a - The bank on which the check is written is called the ___________.
a. drawee
b. clearinghouse
c. drawer
d. payee
b - To calculate simple interest, take _________ x rate x time.
a. down payment
b. principal
c. maturity value
d. equity
c - A personal check that the bank guarantees is a __________.
a. cashier's check
b. money order
c. certified check
d. certificate order
d - Holding a variety of investments in order to reduce the risk is called ___________.
a. liquidity
b. dollar-cost averaging
, c. return on investment
d. diversification
b - The purpose of retirement savings is to _____________.
a. provide for short-term needs
b. provide for long-term needs
c. provide for intermediate needs
d. invest
d - All of the following are considered installment loans except ______________.
a. automobile loans
b. mortgage loans
c. education loans
d. credit cards
c - When doing a bank reconciliation, outstanding deposits should be added to the ___________.
a. checkbook balance
b. checkbook register
c. bank balance on the bank statement
d. outstanding check
d - When buying a home, a buyer can lower the interest rate on the loan by _______________.
a. taking out a second mortgage.
b. obtaining a home equity loan.
c. having the house appraised.
d. making a larger down payment then required.
ANSWERS GUARANTEE A+
c - A(n) _______ is a report that accounts for the differences between a bank statement and a
checkbook balance.
a. annual report
b. endorsement
c. bank reconciliation
d. bank report
a - A computer-based system that moves money from one account to another without writing a
check or using cash is a(n) _________.
a. EFT
b. NSF
c. ATM
d. FDIC
b - The person who writes a check is referred to as the _________.
a. payee
b. drawer
c. drawee
d. payer
d - The value of a house, less the amount still owed on the money borrowed to purchase it, is
called the __________.
a. mortgage
b. spread
c. points
,d. equity
d - A type of debt that allows you to borrow money up to a set limit without having to make more
than the minimum payment each month is a(n) ______________.
a. installment loan
b. unsecured loan
c. secured loan
d. revolving loan
a - The 9-digit number printed on a check that identifies the bank that holds the checking account
and the Federal Reserve District the bank is located in is called the ____________.
a. transit/routing number
b. account number
c. MICR number
d. NSF number
c - Credit Unions have the ability to offer _____________ then commercial banks.
a. higher interest rates on loans
b. Fewer financial services
c. higher interest on savings
b. lower interest on savings
b - In a lease agreement, a tenant may have to pay the landlord a security deposit to __________.
a. increase the value of the private property
b. guard against any financial loss
c. pay for monthly utilities
d. bsecure a particular rental
,b - Which of the following accounts is the least liquid?
a. interest bearing checking account
b. certificate of deposit
c. checking account
d. savings account
a - The bank on which the check is written is called the ___________.
a. drawee
b. clearinghouse
c. drawer
d. payee
b - To calculate simple interest, take _________ x rate x time.
a. down payment
b. principal
c. maturity value
d. equity
c - A personal check that the bank guarantees is a __________.
a. cashier's check
b. money order
c. certified check
d. certificate order
d - Holding a variety of investments in order to reduce the risk is called ___________.
a. liquidity
b. dollar-cost averaging
, c. return on investment
d. diversification
b - The purpose of retirement savings is to _____________.
a. provide for short-term needs
b. provide for long-term needs
c. provide for intermediate needs
d. invest
d - All of the following are considered installment loans except ______________.
a. automobile loans
b. mortgage loans
c. education loans
d. credit cards
c - When doing a bank reconciliation, outstanding deposits should be added to the ___________.
a. checkbook balance
b. checkbook register
c. bank balance on the bank statement
d. outstanding check
d - When buying a home, a buyer can lower the interest rate on the loan by _______________.
a. taking out a second mortgage.
b. obtaining a home equity loan.
c. having the house appraised.
d. making a larger down payment then required.
