Banking Topic Test Already Passed
In the formula I=P·r·t, what does r stand for?
a.
Rate: the percent that interest is paid annually as a decimal
b.
Ratio: the size of the interest interval compared to time
c.
Return: how much money you end up earning
d.
Reserves: how much money you have...
1). In the formula i=p·r·t, what does r stand for?
a.
rate: the percent that interest is paid annually as a decimal
b.
ratio: the size of the interest interval compared to time
c.
return: how much money you end up earning
d.
reserves: how much money you have in the investment
Ans: A
2). Approximately how much principal would need to be placed into an account earning 3.575%
interest compounded quarterly so that it has an accumulated value of $68,000 at the end of
30 years?
a.
$23,706
b.
$23,377
c.
$52,069
d.
$58,944
Ans: B
3). Roberta's monthly bank statement says that she has a balance of 386.29, but roberta's
check register says that her balance is 370.77. which of the following are still outstanding?
i. a $78.17 check to the electric company
ii. a $16.15 deposit from roberta's roommate
iii. a $22.67 check to the grocery store
iv. a $62.65 deposit from roberta's tax return
a.
i and ii
b.
ii and iii
c.
ii and iv
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, d.
i and iv
Ans: D
4). The same amount of principal is invested in different accounts earning the same interest
rate. which of the following accounts would have the greatest accumulated value at the end
of one year?
a.
an account earning no interest
b.
an account earning simple interest
c.
an account earning interest compounded annually
d.
an account earning interest compounded daily
Ans: D
5). Richard's checkbook register as of 02/19:enter the following transactions into richard's
checkbook register and state his ending balance:
Ans: B
6). Mary and lewis each open a savings account at the same time. mary invests $3,700 in an
account yielding 3.2% simple interest, and lewis invests $3,000 in an account yielding 5.9%
simple interest. after fifteen years, who has the greater total amount of money, and how
much greater is it?
a.
lewis has $879 more than mary.
b.
lewis has $179 more than mary.
c.
mary has $776 more than lewis.
d.
mary has $345 more than lewis.
Ans: B
7). Which of these can be considered "online banking?"
i. a brick-and-mortar bank that allows its customers to transfer money online.
ii. a bank that has only a few branches but has customers depositing money online.
iii. a bank that does not exist as a real building, but only has an internet presence.
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