BPA Banking and Finance, Banking & Finance (BPA) 2025/2026
QUESTIONS AND ANSWERS GUARANTEE A+
credit union - a type of financial co-operative (owned by its members) that provides savings and
checking accounts and other services to its membership at low fees.
truth in lending act - (TILA) 1968 law designed to promote the informed use of consumer credit,
by requiring disclosures about its terms and cost to standardize the manner in which costs
associated with borrowing are calculated and disclosed
reserve requirements - requirements regarding the amount of cash a bank must hold in reserve
against deposits made by customers (may not be used for lending or investing)
annualcreditreport.com - What is the name of the official government approved website to get a
free credit report?
savings account - an interest-bearing deposit account held at a bank or another financial
institution that provides a modest interest rate; may limit the number of withdrawals you can
make
checking account - a deposit account held at a financial institution that allows withdrawals and
deposit; AKA demand accounts or transactional accounts
certificate of deposit - (CD) a savings certificate with a fixed maturity date, specified fixed
interest rate and can be issued in any denomination aside from minimum investment
requirements
annuity - contractual financial product sold by financial institutions that is designed to accept and
grow funds from an individual and then, upon annuitization, pay out a stream of payments to the
individual at a later point in time; All earnings in the it grow TAX-DEFERRED
, mutual fund - An investment vehicle made up of a pool of moneys collected from many investors
for the purpose of investing in securities such as stocks, bonds, money market instruments and
other assets
bank teller - Worker who handles bank deposits and withdrawals, sell traveler's checks and
foreign currency, accept loan payments, prepare certified checks or money orders, and may
handle other duties.
overdraft - an extension of credit from a lending institution when an account reaches zero; allows
the individual to continue withdrawing money even if the account has no funds
arrears - if the debt, liability, or obligation expected is overdue in an account; "the account is in
__________."
affinity card - A type of credit card issued by a bank and a charitable organization whose logo
appears on the card; Each time the card is used, a percentage of the transaction is donated to the
organization
access check - A check that credit card issuers provide that allows you to access cash from your
available line of credit
cashier's check - A check issued by a bank and paid from its funds; will not usually bounce
because the amount it is written for is paid to the bank when it is issued, and the bank then
assumes the obligation
personal credit - (AKA consumer debt) debt that a person incurs when purchasing a good or
service; includes purchases obtained with credit cards, lines of credit and some loans
bankruptcy - a legal proceeding involving a person or business that is unable to repay
outstanding debts; process begins with a petition filed by the debtor, which is most common, or
on behalf of creditors, which is less common
QUESTIONS AND ANSWERS GUARANTEE A+
credit union - a type of financial co-operative (owned by its members) that provides savings and
checking accounts and other services to its membership at low fees.
truth in lending act - (TILA) 1968 law designed to promote the informed use of consumer credit,
by requiring disclosures about its terms and cost to standardize the manner in which costs
associated with borrowing are calculated and disclosed
reserve requirements - requirements regarding the amount of cash a bank must hold in reserve
against deposits made by customers (may not be used for lending or investing)
annualcreditreport.com - What is the name of the official government approved website to get a
free credit report?
savings account - an interest-bearing deposit account held at a bank or another financial
institution that provides a modest interest rate; may limit the number of withdrawals you can
make
checking account - a deposit account held at a financial institution that allows withdrawals and
deposit; AKA demand accounts or transactional accounts
certificate of deposit - (CD) a savings certificate with a fixed maturity date, specified fixed
interest rate and can be issued in any denomination aside from minimum investment
requirements
annuity - contractual financial product sold by financial institutions that is designed to accept and
grow funds from an individual and then, upon annuitization, pay out a stream of payments to the
individual at a later point in time; All earnings in the it grow TAX-DEFERRED
, mutual fund - An investment vehicle made up of a pool of moneys collected from many investors
for the purpose of investing in securities such as stocks, bonds, money market instruments and
other assets
bank teller - Worker who handles bank deposits and withdrawals, sell traveler's checks and
foreign currency, accept loan payments, prepare certified checks or money orders, and may
handle other duties.
overdraft - an extension of credit from a lending institution when an account reaches zero; allows
the individual to continue withdrawing money even if the account has no funds
arrears - if the debt, liability, or obligation expected is overdue in an account; "the account is in
__________."
affinity card - A type of credit card issued by a bank and a charitable organization whose logo
appears on the card; Each time the card is used, a percentage of the transaction is donated to the
organization
access check - A check that credit card issuers provide that allows you to access cash from your
available line of credit
cashier's check - A check issued by a bank and paid from its funds; will not usually bounce
because the amount it is written for is paid to the bank when it is issued, and the bank then
assumes the obligation
personal credit - (AKA consumer debt) debt that a person incurs when purchasing a good or
service; includes purchases obtained with credit cards, lines of credit and some loans
bankruptcy - a legal proceeding involving a person or business that is unable to repay
outstanding debts; process begins with a petition filed by the debtor, which is most common, or
on behalf of creditors, which is less common
