Financial Institutions & Banking Exam
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
ATM - CORRECT ANSWER Automatic Teller Machine. Allows a person to manage a bank
account holder's funds through actions such as withdrawing or depositing money, viewing account
balances, etc.
Balance - CORRECT ANSWER The amount of money you have in your bank account
bank statement - CORRECT ANSWER A monthly document prepared by your financial
institution which shows all of the transactions related to your accountCanceled Check
Certificate Of Deposit (CD) - CORRECT ANSWER A bank product that earns interest on a
lump-sum deposit that's untouched for a predetermined period of time
Check - CORRECT ANSWER A written, dated, and signed order to the bank that tells it to pay
a definite sum of money to a payee
Checkbook - CORRECT ANSWER A handy portfolio that holds your check register, checks,
deposit slips, receipts, and other records of ATM/debit card transactions
Check Register - CORRECT ANSWER A record that allows you to keep track of checks you
have written, ATM/debit card transactions, as well as deposits and withdrawals
Compound Interest - CORRECT ANSWER Reinvesting earned interest back into the principal
to allow money to grow exponentially over time
Debit Card - CORRECT ANSWER A card that is directly connected to your checking account;
it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a
check
Deposit - CORRECT ANSWER Money you put into your account
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
ATM - CORRECT ANSWER Automatic Teller Machine. Allows a person to manage a bank
account holder's funds through actions such as withdrawing or depositing money, viewing account
balances, etc.
Balance - CORRECT ANSWER The amount of money you have in your bank account
bank statement - CORRECT ANSWER A monthly document prepared by your financial
institution which shows all of the transactions related to your accountCanceled Check
Certificate Of Deposit (CD) - CORRECT ANSWER A bank product that earns interest on a
lump-sum deposit that's untouched for a predetermined period of time
Check - CORRECT ANSWER A written, dated, and signed order to the bank that tells it to pay
a definite sum of money to a payee
Checkbook - CORRECT ANSWER A handy portfolio that holds your check register, checks,
deposit slips, receipts, and other records of ATM/debit card transactions
Check Register - CORRECT ANSWER A record that allows you to keep track of checks you
have written, ATM/debit card transactions, as well as deposits and withdrawals
Compound Interest - CORRECT ANSWER Reinvesting earned interest back into the principal
to allow money to grow exponentially over time
Debit Card - CORRECT ANSWER A card that is directly connected to your checking account;
it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a
check
Deposit - CORRECT ANSWER Money you put into your account
