The US Banking System 3e by Center for Financial Training - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below 1. Most banks offer essentially the same types of accounts. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: BNKG.CFFT.3.LO: 5.1.1 - LO: …
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The US Banking System 3e by Center for Financial Training – Test Bank
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
1. Most banks offer essentially the same types of accounts.
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2. A transaction account allows transactions to occur at any time and in any number.
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3. Basic checking accounts always pay interest on the balance deposited in the account.
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4. Banks may require up to a seven-day notice from a depositor who wants to withdraw money from a time deposit.
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5. You cannot get your money from a certificate of deposit before the maturity date.
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6. Principal is the price paid for using money.
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7. Compound interest uses the same principal amount every time it is calculated.
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8. Money doesn’t just mean currency, but also checks, ledger transfers, and even credit.
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9. In the United States, the government plays the greatest role in determining how money is moving.
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10. Banks are free to change governing documents, but they must give customers written notice of changes.
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11. A joint tenancy checking account allows each owner to make deposits and withdrawals independently.
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12. The most common form of a transaction account is a
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13. What term best describes companies obtaining financing directly from capital markets (without using banks for financing)?
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14. Which of the following is NOT a time deposit?
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15. Which of the following accounts are you LEAST likely to encounter at a modern bank?
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16. Which of the following accounts is the MOST liquid?
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17. Adding interest to the principal and paying interest on the new total is called paying
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18. For the purposes of computing interest compounded daily, a year is generally considered to be
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19. Which of the following statements about reserve requirements is true?
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20. Which of the following governing documents list interest rates in effect at the time for various types of accounts?
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21. A check that is dated six months or more before it is presented for payment or deposit is called a(n)
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22. This Federal Reserve regulation requires banks to maintain adequate reserves for the funds they have on deposit.
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23. ____________________ checking accounts offer a few simple services for minimal cost.
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24. All deposits to cover transactions that make automatic withdrawals or transfers to pay bills without writing checks are called ____________________ deposits.
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25. A(n) ____________________ savings account provides a monthly or quarterly report detailing all account activity.
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26. A(n) ____________________ savings account provides a ledger of activity that a teller updates when a customer makes deposits or withdrawals.
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27. The date on which a certificate of deposit is paid is called the ____________________ date.
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28. A(n) ____________________ certificate is equivalent to a certificate of deposit, except it is offered by a credit union rather than a bank.
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29. The beginning amount used to calculate interest is called ____________________.
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30. ____________________ interest adds interest to the principal and pays interest on the new total.
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31. Banks make and receive deposits to each other in ____________________ transactions.
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32. Consumers who perpetually move their funds among various accounts to obtain the highest interest rates at any point in time are called ___________________.
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33. A(n) ____________________ checking account has two or more owners, each of whom has equal and independent access to it.
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34. Natasha’s checking account charges a basic monthly fee of $5. It allows her to write ten checks each month for free; it charges her $2 for every additional check she writes. The account also charges Natasha $1 each time she uses an ATM machine. What total fees did Natasha pay in April if she wrote 17 checks and used the ATM machine six times?
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35. Theo wrote 132 checks last year. How many checks did he write every month, on average?
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36. Calculate the simple interest earned on a savings account in nine months that begins with a deposit of $500 and pays 3 percent interest.
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37. Augie’s savings account pays simple interest. He began with a deposit of $2,000; at the end of one year, he had earned $80 in interest. Find the interest rate on the account.
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38. Keri’s savings account pays simple interest at a rate of 4.5 percent. After nine months, the account had earned $202.50 in interest. Find the principal.
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39. Calculate the simple interest earned on a savings account in six months that begins with a deposit of $5,000 and pays 6 percent interest.
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40. What is a demand deposit?
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41. How do the total funds in transaction accounts affect the money supply?
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42. What is a certificate of deposit?
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43. What is the basic formula for calculating simple interest?
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44. In general, what determines the money supply?
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45. What are disclosure statements?
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46. Describe the benefits of an express checking account. What are some disadvantages?
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47. Compare and contrast savings accounts and money market deposit accounts.
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48. Explain the difference between APR and APY.
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49. Describe how the Federal Reserve can put more money into the economy through its open market operations.
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50. Name three things a bank must do to meet the requirements of Federal Reserve Regulation CC.
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Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
