Accounting & Banking Test

What is the primary purpose of a bank?

• To sell goods

• To provide financial services

• To manufacture products

• To create laws

What is a checking account used for?

• Saving money

• Making everyday transactions

• Investing in stocks

• Earning high interest

What does the Federal Reserve do?

• Manages the country's education system

• Controls the supply of money

• Oversees the healthcare system

• Regulates international trade

What is interest in banking terms? (Multiple correct answers)

• The cost of borrowing money

• A penalty for late payments

• A return earned from savings and investments

• A type of insurance

What is a savings account primarily used for?

• Daily expenses

• Long-term savings

• Buying stocks

• Paying taxes

What is a loan?

• A gift of money

• Money borrowed that must be repaid

• A type of insurance

• A form of currency exchange

What is a budget?

• A plan for spending and saving money

• A type of bank account

• A financial penalty

• A government tax

What is a credit card?

• A card that stores cash

• A card used to borrow money for purchases

• A card that tracks spending

• A card that earns interest

What is the main function of the Federal Reserve?

• Responsible for establishing the federal budget

• To regulate the banking system

• Provides banking services to consumers

• Provides financial assistance to local governments

What is a deposit?

• Money taken out of an account

• Money put into an account

• A type of loan

• A financial penalty