BPA – BANKING AND FINANCE EVENT TEST
QUESTIONS AND ANSWERS
Your take-home pay, or net income, is _________.
a. the amount you receive after benefits, such as vacation pay and health
insurance, have been added
b. the amount you receive after taxes, insurance, or other costs have been
subtracted
c. the total amount you earn
d. gross income - ANSWER b. the amount you receive after taxes, insurance,
or other costs have been subtracted
The amount of interest you earn on money in your savings account will depend
on which factors?
a. the interest rate, the time money remains in the account, and how the bank
pays the interest
b. the prime rate, your credit rating, and how you make the deposits
c. the interest rate, how often you make deposits, and how the bank invests your
money
d. the amount of collateral, the amount in your checking account, and the
balances on your credit cards - ANSWER a. the interest rate, the time money
remains in the account, and how the bank pays the interest
What type of financial institution must have a majority of their assets in
housing-related loans?
a. Credit Unions
b. Savings Institutions
c. Banks
d. None of the above - ANSWER b. Savings Institutions
A _________ allows deposits and withdrawals; may require a minimum balance
to keep the account open; earns interest; and may limit the number of times you
can withdraw money.
a. regular savings account
b. money market account
, c. certificate of deposit
d. checking account - ANSWER a. regular savings account
Which of the following assets is the most liquid?
a. A certificate of deposit that comes due in six months
b. The money in your wallet
c. Ten shares of common stock
d. The money in your savings account - ANSWER b. The money in your
wallet
Overdraft protection is _________.
a. the use of a debit card to purchase an item at a retail store
b. the amount of interest that a financial institution would pay on a deposit
c. the percentage of increase in your account from earned interest d. an
automatic loan made to an account if the balance will not cover a transaction
made on the account - ANSWER d. an automatic loan made to an account if
the balance will not cover a transaction made on the account
What type of financial institution is governed by federal and state laws and
regulations?
a. Credit Unions
b. Savings Institutions
c. Banks
d. None of the above - ANSWER c. Banks
All the following are ways to establish good credit except _________. a. pay
your bills in full and on time
b. always keep your promises to repay the money you borrow
c. use your credit card to buy something you can't really afford
d. don't write a check for more money than you have in your account -
ANSWER c. use your credit card to buy something you can't really afford
_________ earns higher interest; may require a higher minimum balance; and
provides checks for withdrawals.
a. regular savings account
b. money market account
c. certificate of deposit
d. checking account - ANSWER b. money market account
QUESTIONS AND ANSWERS
Your take-home pay, or net income, is _________.
a. the amount you receive after benefits, such as vacation pay and health
insurance, have been added
b. the amount you receive after taxes, insurance, or other costs have been
subtracted
c. the total amount you earn
d. gross income - ANSWER b. the amount you receive after taxes, insurance,
or other costs have been subtracted
The amount of interest you earn on money in your savings account will depend
on which factors?
a. the interest rate, the time money remains in the account, and how the bank
pays the interest
b. the prime rate, your credit rating, and how you make the deposits
c. the interest rate, how often you make deposits, and how the bank invests your
money
d. the amount of collateral, the amount in your checking account, and the
balances on your credit cards - ANSWER a. the interest rate, the time money
remains in the account, and how the bank pays the interest
What type of financial institution must have a majority of their assets in
housing-related loans?
a. Credit Unions
b. Savings Institutions
c. Banks
d. None of the above - ANSWER b. Savings Institutions
A _________ allows deposits and withdrawals; may require a minimum balance
to keep the account open; earns interest; and may limit the number of times you
can withdraw money.
a. regular savings account
b. money market account
, c. certificate of deposit
d. checking account - ANSWER a. regular savings account
Which of the following assets is the most liquid?
a. A certificate of deposit that comes due in six months
b. The money in your wallet
c. Ten shares of common stock
d. The money in your savings account - ANSWER b. The money in your
wallet
Overdraft protection is _________.
a. the use of a debit card to purchase an item at a retail store
b. the amount of interest that a financial institution would pay on a deposit
c. the percentage of increase in your account from earned interest d. an
automatic loan made to an account if the balance will not cover a transaction
made on the account - ANSWER d. an automatic loan made to an account if
the balance will not cover a transaction made on the account
What type of financial institution is governed by federal and state laws and
regulations?
a. Credit Unions
b. Savings Institutions
c. Banks
d. None of the above - ANSWER c. Banks
All the following are ways to establish good credit except _________. a. pay
your bills in full and on time
b. always keep your promises to repay the money you borrow
c. use your credit card to buy something you can't really afford
d. don't write a check for more money than you have in your account -
ANSWER c. use your credit card to buy something you can't really afford
_________ earns higher interest; may require a higher minimum balance; and
provides checks for withdrawals.
a. regular savings account
b. money market account
c. certificate of deposit
d. checking account - ANSWER b. money market account
