BPA Banking and Finance 2025/2026 QUESTIONS AND
ANSWERS GUARANTEE A+
five cs of credit - CRITERIA LENDERS AND INVESTORS USE TO EVALUATE THE
CREDITWORTHINESS OF ENTREPRENEURS SEEKING FINANCING: CAPITAL,
CAPACITY, COLLATERAL, CHARACTER, AND CONDITIONS
credit unions - A financial institution owned by its members that provides savings and checking
accounts and other services to its membership at low fees.
truth in lending act - An act which requires lenders to inform borrowers of all direct, indirect and
true costs of credit.
reserve requirment - a Central bank regulation that sets the minimum reserves each Commercial
bank must hold to customer deposits and notes i.e the amount that the bank surrenders with the
central bank.
annualcreditreport.com - What is the name of the official government approved website to get a
free credit report?
savings account - A safe, low-return investment available from banks. There is generally no
minimum deposit for this type of account, making it perfect for kids and teens just starting out.
checking account - A bank account against which the depositor can drawn checks payable on
demand
certificates of deposit - you are loaning a bank money for a set period of time and getting interest
in return.
annuity - Form of contract sold by life insurance companies that guarantees a fixed or variable
payment to the annuitant at some future time, usually retirement. In a FIXED ANNUITY the
, amount will ultimately be paid out in regular installments varying only with the payout method
elected. In a VARIABLE ANNUITY, the payout is based on a guaranteed number of units; unit
values and payments depend on the value of the underlying investments. All earnings in the
annuity grow TAX-DEFERRED.
mutual fund - A group of financial investments often of a specific kind or category, managed by
professionals, with many individual or institutional investors.
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 - A check written for more money than your account contains
arrears - (n.,pl.) unpaid or overdue debts; an unfinished duty
affinity card - a credit card that promotes an organization's brand each time a cardholder uses it
access check - looks like regular checks; supplied by the credit card company and, when written,
are treated like a purchase
cashier's check - Check purchased at a bank or other financial institution. Frequently required
form of payment (as opposed to a personal check).
personal credit - Credit used by individuals such as yourself (Ex: your parents using a credit card
to purchase you a new pair of shoes)
bankruptcy - A judicial procedure that allows a debtor to deal with a personal financial situration
that has become unmanageable. Under Chapter 11 a borrower is usually allowed to keep
possession of the property.
ANSWERS GUARANTEE A+
five cs of credit - CRITERIA LENDERS AND INVESTORS USE TO EVALUATE THE
CREDITWORTHINESS OF ENTREPRENEURS SEEKING FINANCING: CAPITAL,
CAPACITY, COLLATERAL, CHARACTER, AND CONDITIONS
credit unions - A financial institution owned by its members that provides savings and checking
accounts and other services to its membership at low fees.
truth in lending act - An act which requires lenders to inform borrowers of all direct, indirect and
true costs of credit.
reserve requirment - a Central bank regulation that sets the minimum reserves each Commercial
bank must hold to customer deposits and notes i.e the amount that the bank surrenders with the
central bank.
annualcreditreport.com - What is the name of the official government approved website to get a
free credit report?
savings account - A safe, low-return investment available from banks. There is generally no
minimum deposit for this type of account, making it perfect for kids and teens just starting out.
checking account - A bank account against which the depositor can drawn checks payable on
demand
certificates of deposit - you are loaning a bank money for a set period of time and getting interest
in return.
annuity - Form of contract sold by life insurance companies that guarantees a fixed or variable
payment to the annuitant at some future time, usually retirement. In a FIXED ANNUITY the
, amount will ultimately be paid out in regular installments varying only with the payout method
elected. In a VARIABLE ANNUITY, the payout is based on a guaranteed number of units; unit
values and payments depend on the value of the underlying investments. All earnings in the
annuity grow TAX-DEFERRED.
mutual fund - A group of financial investments often of a specific kind or category, managed by
professionals, with many individual or institutional investors.
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 - A check written for more money than your account contains
arrears - (n.,pl.) unpaid or overdue debts; an unfinished duty
affinity card - a credit card that promotes an organization's brand each time a cardholder uses it
access check - looks like regular checks; supplied by the credit card company and, when written,
are treated like a purchase
cashier's check - Check purchased at a bank or other financial institution. Frequently required
form of payment (as opposed to a personal check).
personal credit - Credit used by individuals such as yourself (Ex: your parents using a credit card
to purchase you a new pair of shoes)
bankruptcy - A judicial procedure that allows a debtor to deal with a personal financial situration
that has become unmanageable. Under Chapter 11 a borrower is usually allowed to keep
possession of the property.
