Online Banking Math: A Quiz on Financial Operations
Embark on a journey into the realm of Online Banking Math with our enlightening quiz on financial operations. Are you ready to put your knowledge to the test and dive into the world of banking terms, interest calculations, account types, and security measures?
Explore the world of savings and investment accounts, including the benefits of a Certificate of Deposit (CD) and the best-suited account for emergency savings. Understand the concept of compound interest and the calculation of minimum monthly credit card payments.
Stay ahead of the curve with your understanding of security measures, including two-factor authentication in online transactions. Whether you're an Read moreonline banking enthusiast or looking to enhance your financial prowess, this quiz is sure to enrich your knowledge and empower you with essential financial skills. So, let's get started on this exciting quiz, and may your financial knowledge flourish! Good luck!
- 1.
What does APR stand for in Online Banking?
- A.
Average Percentage Rate
- B.
Annual Percentage Rate
- C.
Applied Payment Ratio
- D.
Account Protection Rate
Correct Answer
B. Annual Percentage Rate -
- 2.
What is the formula for calculating simple interest?
- A.
P * r * t
- B.
P + r + t
- C.
P / r / t
- D.
P - r - t
Correct Answer
A. P * r * t -
- 3.
What is the purpose of a routing number in Online Banking?
- A.
To track transaction history
- B.
To identify the account holder
- C.
To calculate interest rates
- D.
To locate nearby ATMs
Correct Answer
B. To identify the account holder -
- 4.
What is the primary function of a checking account?
- A.
Long-term savings
- B.
Earning high interest
- C.
Managing loan repayments
- D.
Daily transactions
Correct Answer
D. Daily transactions -
- 5.
Which term refers to the amount of money available for withdrawal in a checking account?
- A.
Balance
- B.
Interest
- C.
APR
- D.
Overdraft
Correct Answer
A. Balance -
- 6.
What is the benefit of using a CD (Certificate of Deposit) account?
- A.
High interest rates
- B.
Easy access to funds
- C.
No minimum balance
- D.
Unlimited withdrawals
Correct Answer
A. High interest rates -
- 7.
How is the minimum monthly payment calculated for a credit card?
- A.
Fixed amount
- B.
Percentage of the balance
- C.
Varies with credit score
- D.
Determined by the bank
Correct Answer
B. Percentage of the balance -
- 8.
Which type of account is best suited for emergency savings?
- A.
Checking account
- B.
CD account
- C.
Money market account
- D.
Savings account
Correct Answer
B. CD account -
- 9.
What does the term "compound interest" mean?
- A.
Interest added to the principal only
- B.
Interest paid by the bank
- C.
Interest earned on interest
- D.
Interest deducted from the balance
Correct Answer
C. Interest earned on interest -
- 10.
How do online banks protect sensitive information during transactions?
- A.
Two-factor authentication
- B.
Publicly sharing account details
- C.
Writing passwords on a notepad
- D.
Sharing account details over email
Correct Answer
A. Two-factor authentication -
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Jul 26, 2023Quiz Edited by
ProProfs Editorial Team -
Jul 26, 2023Quiz Created by
Amit Mangal
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