Zapper Banking Chapter 4 Test

Front 1

Most banks offer essentially the same types of accounts.

Back 1

True

Front 2

A transaction account allows transactions to occur at any time and in any number.

Back 2

True

Front 3

Basic checking accounts pay interest on the balance deposited in the account

Back 3

False

Front 4

Banks may require up to a seven-day notice from a depositor who wants to withdraw money from a time deposit.

Back 4

True

Front 5

You cannot get your money from a certificate of deposit before the maturity date.

Back 5

False

Front 6

Principal is the price paid for using money

Back 6

False

Front 7

Compound interest uses the same principal amount every time it is calculated.

Back 7

False

Front 8

Money doesn't just mean currency, but also checks, ledger transfers, and even credt.

Back 8

True

Front 9

In the United States, the government plays the greatest role in determining how money is moving

Back 9

False

Front 10

Banks are free to change governing documents, but they must give customers written notice of changes

Back 10

False

Front 11

The most common form of a transaction account is a

Back 11

checking account

Front 12

To which catagory of the money supply do transaction accounts belong?

Back 12

M1

Front 13

Which of the following is NOT a time deposit?

Back 13

checking account

Front 14

Which of the following accounts are you LEAST likely to encounter at a modern bank?

Back 14

Passbook savings account

Front 15

Which of the following accounts is the MOST liquid?

Back 15

checking account

Front 16

Adding interest to the principal and paying interest on the new total is called paying

Back 16

compound interest

Front 17

For the purpose of computing interest compounded daily, a year is generally considered to be

Back 17

360 days

Front 18

Which of the following statements about reserve requirements is true?

Back 18

Reserve requirements do not change very often

Front 19

Which of the following governing documents list interest rates in effect at the time for various types of accounts?

Back 19

Deposit rate schedules

Front 20

A check that is dated six months or more before it is presented for payment or deposit is called a(n)

Back 20

stale check

Front 21

________ checking accounts offer a few simple services for minimal cost.

Back 21

Basic

Front 22

All deposits to cover transactions that make automatic withdrawals or transfers to pay bills without writing checks are called _________ deposits.

Back 22

checkable

Front 23

A(n) _________ savings account provides a monthly or quarterly report detailing all account activity.

Back 23

statement

Front 24

A(n) _______________ savings account provides a ledger of activity that a teller updates when a customer makes deposits or withdrawals.

Back 24

Passbook

Front 25

The date on which certificate of deposit is paid is called the ________ date.

Back 25

maturity

Front 26

A(n) ________ certificate is equivalent to a certificate of deposit, except it is offered by a credit union rather than a bank.

Back 26

share

Front 27

The beginning amount used to calculate interest is called _________.

Back 27

Principal

Front 28

_________ interest adds interest to the principal and pays interest on the new total.

Back 28

Compound

Front 29

Banks make and receive deposits to each other in ______ transactions

Back 29

interbank

Front 30

The Federal Reserve buys U.S. government securities by creating new money, called _______ money

Back 30

raw