Succeeding in the World of Work

Chapter 21: Banking and Credit

Interactive Practice Tests

1
Money you put into your account is called a
A)withdrawal
B)balance
C)deposit
D)credit
2
What is an IRA?
A)Internal Revenue Association
B)Invested Retirement Account
C)Individual Retirement Account
D)Interest Revenue Account
3
What is the term for money you can use now, but must pay back later?
A)credit
B)collateral
C)down payment
D)deposit
4
The best time to start saving for your retirement is
A)when you become eligible for Social Security.
B)as soon as possible.
C)when you start a family.
D)when interest rates are low.
5
A bank for people who are part of the same organization is a
A)mutual fund company.
B)Individual Retirement Account (IRA).
C)credit union.
D)credit bureau.
6
Choosing a longer investment period when you buy a certificate of deposit (CD)
A)often ensures a higher interest rate.
B)often ensures a lower interest rate.
C)has no effect on the interest rate.
D)often decreases the dividend you receive.
7
Writing checks for more money than you have will result in your account being
A)endorsed.
B)reconciled.
C)registered.
D)overdrawn.
8
An electronic funds transfer (EFT) occurs when you
A)write a check.
B)purchase a money order.
C)use a debit card.
D)pay cash.
9
Credit allows you to buy something now and
A)become a member of a SEP.
B)pay for it later.
C)receive a credit limit.
D)become a member of a credit bureau.
10
Secured loans are guaranteed by an asset of the borrower, known as
A)collateral.
B)credit.
C)a certificate of deposit (CD).
D)a dividend.
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