Question

What are accrued interests?
(5 Points)


cost of borrowing money, usually expressed as a percentage of the amount borrowed

interest that has accumulated on a loan or investment but has not yet been paid

money withdrawn from an account

delay placed by a bank on funds in an account
2.What is an annual percentage rate?
(5 Points)


percentage of person’s gross yearly income that goes toward paying debts

percentage charged on savings earned yearly

percentage charged yearly by a bank for account maintenance

yearly cost of a loan or credit expressed as a percentage
3.What is an automated teller machine (ATM)?
(5 Points)


machine that allows bank customers to withdraw, deposit, or transfer money

machine that allows bank customers to complain or make positive comments

machine that allows bank customers to confirm appointments with loan officers

machine that allows bank customers to cancel bank transactions
4.What is a “Certificate of Deposit”?
(5 Points)


movement of money from one account to another

bank account shared by two or more people

check that has been written but not yet cashed

savings account where money is kept for a set time to earn a fixed interest rate
5.What is credit?
(5 Points)


money taken out of an account

money added to an account.

temporary delay placed on deposited funds

cost of borrowing money
6.What is debit?
(5 Points)


money taken out of an account

money added to an account

temporary delay placed on deposited funds

cost of borrowing money
7.What Debt-to-Income Ratio (DTI)
(5 Points)


measure comparing annual debt income to annual payments

measure comparing monthly debt payments to annual income

measure comparing monthly income to debt payments

measure comparing monthly debt payments to monthly income
8.Who/what is a drawee?
(5 Points)


person who writes and signs a check

person or business receiving payment

person or bank ordered to pay a check

central bank of the United States
9.Who/what is a drawer?
(5 Points)


person who writes and signs a check

person or business receiving payment

person or bank ordered to pay a check

central bank of the United States
10.What is an electronic funds transfer (EFT)?
(5 Points)


money saved or made available for a particular purpose

Any electronic movement of money between accounts

move from one place to another

delay placed on deposited funds

Answer 1

1. interest that has accumulated on a loan or investment but has not yet been paid

2. yearly cost of a loan or credit expressed as a percentage

3. machine that allows bank customers to withdraw, deposit, or transfer money

4. savings account where money is kept for a set time to earn a fixed interest rate

5. money added to an account

6. money taken out of an account

7. measure comparing monthly debt payments to monthly income

8. person or bank ordered to pay a check

9. person who writes and signs a check

10. Any electronic movement of money between accounts