Bank Deposits and Liabilities Quiz
10 Questions
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Bank Deposits and Liabilities Quiz

Test your knowledge about bank deposits and liabilities with this quiz. Learn about the types of deposit accounts and the rights of the account holder. Understand the concept of bank deposits as a liability owed by the bank to the depositor.

Created by
@FastGrowingAustin

Questions and Answers

What is the primary purpose of a savings account?

To offer a higher interest rate than a checking account

In the context of bank deposits, what does the term 'liability' refer to?

The obligation of the bank to the account holder

What happens when someone opens a bank account and makes a cash deposit?

The cash becomes an asset of the bank

What distinguishes savings accounts from checking or current accounts?

<p>Savings accounts have a passbook for logging transactions</p> Signup and view all the answers

Which type of account usually pays an interest rate higher than others?

<p><strong>Savings accounts</strong></p> Signup and view all the answers

What type of account usually charges a fee if the balance falls below a specified minimum?

<p>Checking account</p> Signup and view all the answers

Which account type yields high interest but can only be withdrawn after the lapse of the agreed period or by giving notice to the bank?

<p>Time deposit account</p> Signup and view all the answers

What type of account allows withdrawals through designated machines, even when banks are closed?

<p>ATM account</p> Signup and view all the answers

Which account type is usually provided with a bank statement at the end of the month showing all the deposits made, checks paid by the bank, and the balance of the account?

<p>Checking account</p> Signup and view all the answers

What type of savings account allows numerous withdrawals and unlimited deposits?

<p>Savings account</p> Signup and view all the answers

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