NGPF Banking Practice Test

These questions are part of the practice quiz. Start practicing

• Which statement describes FDIC insurance coverage?
• To add cash into your checking account using cash, which method would you use?
• Are notary services typically provided by banks?
• What does it mean to reconcile in banking?
• What is the primary purpose of a checking account?
• What is the main purpose of a signature card?
• Which feature is more likely available on a mobile banking app than on an online portal?
• What is the check clearing cycle?
• Which statement about a credit card grace period is true?
• What is a digital wallet?
• What is a credit card grace period?
• Which network facilitates direct deposits or payments electronically between banks?
• To keep purchasing power, your savings should earn what relative to inflation?
• Which item would not typically be provided by a digital wallet?
• Which of the following statements about debit transactions is true?
• What is a bank service charge and why might it vary?
• Which option describes an Online Savings Account?
• What do banks typically issue?
• What statement best describes APY?
• Which of the following is NOT listed as a challenge to saving money?
• Which term refers to money you must keep in your account to avoid fees?
• Which statement is accurate about prepaid card protections?
• Which statement about certified checks is true?
• What fee is charged by some banks to keep a checking or savings account open?
• Which statement about FDIC and deposit insurance is correct?
• Which practice improves security when banking online?
• Which statement about APY is true?
• Which insurance protects deposits in the bank up to $250,000 in case the bank fails?
• Which statement best describes community banks compared to national banks?
• Which term describes the original amount of money saved or invested, separate from interest or earnings?
• Which financial institution often offers lower fees and supports the local community?
• Which account typically offers the highest interest rate but restricts access to funds for a set period?
• What information is typically required to open a bank account?
• What is an account balance check?
• A sum of money deducted from your account is called what?
• What is a bank statement?
• Mobile deposit commonly involves:
• Which term refers to the government agency that insures customer deposits if a bank fails up to $250,000 per individual depositor?
• What term means money set aside for unanticipated expenses or loss of income?
• Which statement about Americans' emergency funds is supported by the material?
• Which savings product requires keeping funds deposited for a fixed term to earn interest?
• What is overdraft protection?
• Are prepaid cards linked to your bank account?
• Which feature enables depositing checks via a mobile device by photographing the check?
• Which term refers to money deposited INTO an account?
• What is the minimum amount of money that must be maintained in an account to avoid fees?
• What is a secured loan?
• Under which scenario is an overdraft fee charged?
• Which action describes depositing a check at a bank?
• What is a routing number used for?
• Which option describes a risk of being unbanked?
• What is identity theft?
• How do banks typically earn a profit from their lending activities?
• What is the primary role of the FDIC in the banking system?
• What does it mean to be unbanked?
• How do debit card transactions differ from credit card transactions in terms of funding and processing?
• Which term refers to a fee paid to you for keeping your money in an account OR a fee charged to you for a loan or credit card?
• Which option describes depositing cash at an ATM?
• Which type of interest is calculated on the initial principal and the accumulated interest from previous periods?
• What is APR and how does it relate to loans?
• Which account typically offers high interest rates, but requires a minimum balance and offers limited ability to write checks?
• Money you put into your account is called what?
• Which instrument is used to move funds between accounts by directing a bank to pay a specified amount?
• Which term describes the process of adding earned interest back into the principal to grow funds?
• What term describes reinvesting earned interest back into the principal to grow money over time?
• What does endorsing a check involve?
• Which statement about unbanked individuals is true?
• Which following is a card that allows the holder to make purchases by borrowing money?
• Which statement best describes how a savings account differs from a checking account?
• The primary way banks earn profit from deposits is by:
• Which item is a machine that allows people to withdraw cash or check their account balance?
• Which statement is true about simple interest?
• Which option describes making a purchase with a debit card?
• Banks typically issue which of the following?
• Which description best defines Online Bill Pay?
• What is the difference between simple interest and compound interest?
• Which network is commonly used for direct deposits, payroll payments, and recurring bill payments between banks?
• What is the purpose of a sinking fund?
• Which entity insures deposits in U.S. credit unions up to $250,000 per depositor?
• Balance is defined as what?
• Which term describes savings set aside for unexpected expenses or financial emergencies?
• What are ATM services?
• Do banks typically issue credit cards?
• Which statement is true about legal representation in banking?
• Prepaid cards protections: which statement is accurate?
• Which statement about APR and APY is accurate?
• Which concept describes the increase in savings over time, often modeled with linear equations?
• What is interest rate risk?
• Who typically issues cashier checks?
• What term describes a mobile banking tool that allows you to deposit checks to your bank account using your mobile device?
• Which service is not typically offered by banks?
• Which account type typically offers high interest rates but requires a minimum balance and has limited check-writing ability?
• Where can prepaid cards be used?
• Which is a pro of P2P payment apps?
• What is a bounced check?
• Which statement correctly defines simple interest?
• Which device allows you to withdraw funds, deposit funds, and view your account balance?
• How does inflation affect purchasing power?
• A written, dated, and signed order to the bank to pay a definite sum of money to a payee is called what?
• What is a money market account and how does it differ from a savings account?
• What is a linear equation?
• Which feature allows users to deposit checks using a banking app without visiting a branch?
• Which card is directly connected to your checking account and enables ATM transactions and purchases?
• Which term describes money saved specifically to cover unexpected costs or loss of income?
• Why do money market accounts typically have higher minimum balances than savings accounts?
• Which of the following is a cybersecurity best practice for online banking?
• When can an overdraft fee be charged?
• What is the purpose of writing checks?
• Which option describes writing a check?
• Which is a common con of P2P payment apps?
• What term refers to the percentage charged on a loan or paid on savings?
• If Iliza saves $550 per month, how many months will it take to reach $11,000 for her emergency fund?
• Which description best matches a sinking fund?
• What is an ACH transfer?
• Which factor is NOT part of calculating loan-to-value (LTV)?
• Why is it important to monitor bank statements regularly?
• Which term refers to an electronic transfer of a payment directly into a bank account?
• Which of the following is NOT listed as a factor that influences a credit score?
• Which option describes Direct Deposit?
• A stop payment means:
• What does depositing a check via mobile banking typically involve?
• Prepaid cards and credit score: which statement is accurate?
• Which measure helps protect savings from rising prices?
• Which term describes protection provided by the Federal Deposit Insurance Corporation that protects customer deposits up to $250,000 per account?
• If a bank offers ATM services, what does that indicate?
• Which statement best describes a debit card's function?
• What is a written order directing a bank to pay a specific amount from one account to another?
• What does the loan-to-value ratio compare?
• What is a stop payment?
• What is a typical purpose of keeping a check register?
• Which description matches an Online Savings Account?
• What is a stop payment order?
• Which statement best describes the timing of a bank statement compared to a transaction history?
• Which savings product earns interest on a lump sum deposited for a fixed term?
• Which statement best defines an overdraft fee?
• Which service lets you schedule and pay bills over the internet?
• Which action requires you to issue a written order to a bank to withdraw funds?
• Which term describes money deposited into an account?
• What is a money order?
• What does ATM stand for?
• What term means to sign the back of a check made out to you so it can be cashed or deposited?
• The Truth in Lending Act mainly requires lenders to disclose loan terms, costs, and APR to help consumers compare offers.
• What is the difference between a bank statement and a transaction history?
• What is compound interest?
• What best defines overdraft protection?
• Which document is typically issued monthly by a bank to show all transactions related to your account?
• Which statement describes a P2P app benefit when linked to a bank account?
• Which statement about APY and compounding is accurate?
• Which statement about wire transfer services is true?
• When a transaction exceeds the available funds, which fee applies?
• Which term describes a card linked directly to a checking account that can be used to withdraw money or make purchases?
• What term describes the protection that covers bank deposits up to a limit if the bank fails?
• Emergency funds should cover how many months of expenses?
• Which savings option typically offers high interest rates for a standard savings account, but has no physical bank branches?
• Which statement best reflects the typical readiness of Americans to cover a $400 emergency expense?
• Which term describes a monthly fee that some banks charge to provide access to checking or savings accounts?
• What term describes a notification that lets you know if the balance in your checking account goes below a set amount?
• Which of the following is a strategy to avoid bank fees?
• What is an unsecured loan?
• What term refers to a certain amount of money that must be kept in an account as required by that particular financial institution?
• Which financial tool allows the holder to borrow funds to pay for goods and services and promises repayment?
• What is the difference between a bank's online portal and a mobile banking app?
• Which transfer tends to be slower and cheaper?
• Which of the following terms describes a card that allows you to borrow money to make purchases?
• Which statement about cashier checks is true?
• Which practice helps protect against identity theft?
• Which statement best describes a disadvantage of being unbanked?
• Which account would you choose for a guaranteed return over a fixed term, with penalties for early withdrawal?
• Which option describes using online bill pay?
• Which option describes a withdrawal?
• Which statement describes an overdraft fee?
• Which statement describes inflation's impact on savings?
• Which statement about loan-to-value (LTV) is true?
• Which account typically offers the highest interest rate, but restricts access to funds for a set period of time?
• Which account is designed for easy access to funds with relatively few restrictions?
• How is a credit score used by lenders?
• Which notification specifically alerts you when your account balance drops below a designated level?
• Overdraft fees refer to which of the following?
• What is the term for the automatic electronic deposit of net pay to an employee's designated bank account?
• Which statement describes the Pay Yourself First approach?
• Which option describes deposit a check using mobile deposit?
• Which service allows you to deposit checks by taking a photo and using a smartphone?
• Which term describes a loan or credit used to cover withdrawals when funds are insufficient?
• Which option is commonly used to move your paycheck directly into your checking account electronically?
• Which service is not typically offered by banks?
• Which savings option provides easy access to funds and has physical bank branches, but typically offers the lowest interest rates?
• Which of the following is a common feature of overdraft protection?
• What is the Pay Yourself First strategy?
• Which term describes a monthly document prepared by your bank showing all transactions related to your account?
• Which statement about prepaid card fees is true?
• What is the primary purpose of reconciling your bank statements?
• Which statement about certified checks is true?
• What happens if you do not meet a minimum balance requirement?
• What is the difference between a fixed-rate and an adjustable-rate mortgage?
• Which feature would alert you that the balance in your checking account has fallen below a specified threshold?
• Which term refers to the document that lists all cleared checks and transactions in a checking account?
• What is a sinking fund?
• What does inflation mean?
• Which description matches overdraft protection?
• Which record tracks all transactions in a checking account, including deposits and withdrawals?
• Which description matches a savings account?
• Which service is not typically offered by banks?
• Which statement best describes loan prequalification?
• What is a budget?
• Which term means money placed into a bank account?
• Which term describes the rate used to calculate interest on loans and savings?
• What are minimum balance requirements?
• Which concept is defined as the cost of borrowing money or the earnings from savings, expressed as a percentage?
• What do checking and saving accounts represent?
• Which factor most influences bank service charges?
• What is a check register and why is it important?
• Which item is typically insured by the FDIC up to the limit?
• Which term means a minimum amount of money that must be kept in an account to avoid penalties or meet a bank's requirements?
• A transaction fee is charged when what occurs?
• Endorsing a check is best described as:
• What is the amount of money available in a bank account called?
• Which concept describes a monthly fee charged to maintain access to an account?
• Which item is a formal monthly summary of account activity that includes the ending balance?
• Which document shows all transactions in your account and is typically mailed monthly?
• Issuing a cashier’s check is best described as a banking activity involving:
• What is the monthly saving amount in Iliza's plan?
• Which term refers to a bank's formal monthly record of activity and ending balance?
• What is reconciliation in banking?
• Which record is maintained by individuals to track deposits, withdrawals, and balances in a checking account?
• Which statement best describes a digital wallet?
• What does it mean to transfer money to another account?
• What is the purpose of a signature card when opening a bank account?
• Which statement correctly identifies the relationship between notary services and banks?
• What is a loan amortization schedule?
• Which term refers to the original amount of money saved or invested, excluding interest?
• Which term represents the minimum amount that must be kept in an account to avoid monthly fees?
• Which option best describes Direct Deposit?
• Which statement describes a cashier's check?
• What does a loan amortization schedule show?
• Wire transfer services are best described as?