Banking Services - Financial Algebra
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Annual Compounding - Correct answers✔✔a method for calculating interest so that it is paid
once a year
Annual Percentage Rate (APR) - Correct answers✔✔The interest rate paid per year or charged
per year.
Annual Percentage Yield (APY) - Correct answers✔✔An annual rate of interest that takes into
account the effect of compounding; the simple interest rate that would be required to give the
same dollar amount of interest that the compounding gives.
Automated Teller Machine (ATM) - Correct answers✔✔Provides 24-hour bank access to make
deposits, transfers, and withdrawals.
Balancing - Correct answers✔✔The process of verifying the bank's records to make sure no
errors have been made.
Canceled - Correct answers✔✔A check that has been processed so that the money is paid to the
payee of a check.
Certificate of Deposit (CD) - Correct answers✔✔A certificate that states there is a specific sum
of money on deposit and guarantees the payment of a fixed interest rate after a certain period of
time, usually seven days to ten years; deposits and withdrawals cannot be made with a CD.
, Check - Correct answers✔✔A written order used to tell a bank to pay money (transfer funds)
from an account to the check holder.
Check Clearing - Correct answers✔✔The process that happens when a bank pays for a check out
of a checking account; a check is cleared when the bank has transferred the funds from the
checking account.
Check Register - Correct answers✔✔A record of all transactions in a checking account,
including checks written, deposits made, fees paid, ATM withdrawals, and so on.
Checking Account - Correct answers✔✔An account at a bank that allows a customer to deposit
money, make withdrawals, and make transfers from the funds on deposit using a paper check or
electronic transfer.
Compound Interest - Correct answers✔✔Interest that is earned on the money deposited into an
account plus previous interest.
Credit - Correct answers✔✔Deposits into a bank account
Debit - Correct answers✔✔Withdrawals from a bank account.
Deposit Slip - Correct answers✔✔A form to fill out when adding money to a bank account
Direct Deposit - Correct answers✔✔Payroll or other types of checks that are directly and
electronically deposited into a bank account
Electronic Funds Transfer (EFT) - Correct answers✔✔The process of moving funds
electronically from an account in one bank to an account in another bank.
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Annual Compounding - Correct answers✔✔a method for calculating interest so that it is paid
once a year
Annual Percentage Rate (APR) - Correct answers✔✔The interest rate paid per year or charged
per year.
Annual Percentage Yield (APY) - Correct answers✔✔An annual rate of interest that takes into
account the effect of compounding; the simple interest rate that would be required to give the
same dollar amount of interest that the compounding gives.
Automated Teller Machine (ATM) - Correct answers✔✔Provides 24-hour bank access to make
deposits, transfers, and withdrawals.
Balancing - Correct answers✔✔The process of verifying the bank's records to make sure no
errors have been made.
Canceled - Correct answers✔✔A check that has been processed so that the money is paid to the
payee of a check.
Certificate of Deposit (CD) - Correct answers✔✔A certificate that states there is a specific sum
of money on deposit and guarantees the payment of a fixed interest rate after a certain period of
time, usually seven days to ten years; deposits and withdrawals cannot be made with a CD.
, Check - Correct answers✔✔A written order used to tell a bank to pay money (transfer funds)
from an account to the check holder.
Check Clearing - Correct answers✔✔The process that happens when a bank pays for a check out
of a checking account; a check is cleared when the bank has transferred the funds from the
checking account.
Check Register - Correct answers✔✔A record of all transactions in a checking account,
including checks written, deposits made, fees paid, ATM withdrawals, and so on.
Checking Account - Correct answers✔✔An account at a bank that allows a customer to deposit
money, make withdrawals, and make transfers from the funds on deposit using a paper check or
electronic transfer.
Compound Interest - Correct answers✔✔Interest that is earned on the money deposited into an
account plus previous interest.
Credit - Correct answers✔✔Deposits into a bank account
Debit - Correct answers✔✔Withdrawals from a bank account.
Deposit Slip - Correct answers✔✔A form to fill out when adding money to a bank account
Direct Deposit - Correct answers✔✔Payroll or other types of checks that are directly and
electronically deposited into a bank account
Electronic Funds Transfer (EFT) - Correct answers✔✔The process of moving funds
electronically from an account in one bank to an account in another bank.
