Gr 10 Math Lit: Ch 4.5 Banking, Loans, Investments

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Questions and Answers

What is the term for the amount of money in an account at the beginning of a period?

  • Account Balance
  • Closing Balance
  • Opening Balance (correct)
  • Transaction Balance

What type of transaction involves depositing money into an account?

  • Debit Transaction
  • Withdrawal Transaction
  • Bank Fee Transaction
  • Credit Transaction (correct)

What is the purpose of a monthly fee charged by banks?

  • To keep the account open (correct)
  • To increase the account balance
  • To earn interest on the account
  • To reduce transaction fees

How can transaction fees be reduced?

<p>By choosing the most appropriate bank account and adjusting banking habits (D)</p> Signup and view all the answers

What is the formula for calculating total bank fees?

<p>Total Bank Fees = Monthly Maintenance Fee + Self-Service Banking Fee + Cash Deposit Fee + Withdrawal Fee + Balance Inquiry Fee + Other Transaction Fees (A)</p> Signup and view all the answers

What is the term for the fee charged by banks for each withdrawal or deposit?

<p>Transaction Fee (C)</p> Signup and view all the answers

What is the formula for calculating the bank fee for a withdrawal?

<p>Bank Fee = Initial Fee + (Additional Fee × Number of Additional Units) (A)</p> Signup and view all the answers

What is the term for the person whose name the account is in?

<p>Account Holder (B)</p> Signup and view all the answers

What type of bank account earns interest but does not have an overdraft facility?

<p>Savings Account (C)</p> Signup and view all the answers

What is the primary purpose of a Fixed Deposit Account?

<p>For long-term investments (A)</p> Signup and view all the answers

What document is typically required to open a bank account?

<p>Identity document or passport (B)</p> Signup and view all the answers

What information is shown on a bank statement for each transaction?

<p>Date of transaction, description, and amount (B)</p> Signup and view all the answers

What type of bank account allows the account holder to purchase items now and pay for them later?

<p>Credit Account (C)</p> Signup and view all the answers

What is the primary difference between a Credit Account and a Debit Account?

<p>Credit account offers credit, while debit account deducts from the account (C)</p> Signup and view all the answers

How often are bank statements typically sent to the account holder?

<p>Monthly (B)</p> Signup and view all the answers

What information is required by FICA to open a bank account?

<p>Identity document, proof of residence, and proof of income (C)</p> Signup and view all the answers

What is the main difference between a Cheque or Current Account and a Savings Account?

<p>One has an overdraft facility, while the other does not. (C)</p> Signup and view all the answers

What is the purpose of a Fixed Deposit Account?

<p>For long-term savings with a fixed interest rate. (B)</p> Signup and view all the answers

What is required by FICA when opening a bank account?

<p>Identity document, proof of residence, and proof of income. (D)</p> Signup and view all the answers

What is shown on a bank statement for each transaction?

<p>The date, description, and amount of the transaction. (B)</p> Signup and view all the answers

What is the main feature of a Credit Account?

<p>It allows for purchases on credit. (D)</p> Signup and view all the answers

What is the main difference between a Debit Account and a Cheque or Current Account?

<p>One deducts money directly from the account, while the other does not. (C)</p> Signup and view all the answers

Why is proof of residence required when opening a bank account?

<p>To verify the account holder's address. (C)</p> Signup and view all the answers

What is the typical frequency of bank statements sent to the account holder?

<p>Monthly. (D)</p> Signup and view all the answers

What is the main purpose of a bank account's monthly fee?

<p>To keep the account open (B)</p> Signup and view all the answers

How do transaction fees vary?

<p>Depending on the type of account (B)</p> Signup and view all the answers

What is the effect of choosing the most appropriate bank account for your needs?

<p>Reduced transaction fees (C)</p> Signup and view all the answers

What is included in the calculation of total bank fees?

<p>Several types of fees, including the monthly maintenance fee, self-service banking fee, and others (C)</p> Signup and view all the answers

What is the purpose of a bank account's opening balance?

<p>To show the amount of money in the account at the beginning of the period (C)</p> Signup and view all the answers

What is the result of exceeding the allowed number of free withdrawals, deposits, and balance inquiries?

<p>Increased transaction fees (B)</p> Signup and view all the answers

What is the formula for calculating the total bank fees?

<p>Total Bank Fees = Monthly Maintenance Fee + Self-Service Banking Fee + Cash Deposit Fee + Withdrawal Fee + Balance Inquiry Fee + Other Transaction Fees (D)</p> Signup and view all the answers

What type of transaction involves paying money out of an account?

<p>Debit transaction (A)</p> Signup and view all the answers

What is the primary purpose of a Cheque or Current Account?

<p>To deposit and withdraw money through various channels (B)</p> Signup and view all the answers

Which type of bank account typically has an overdraft facility?

<p>Cheque or Current Account (A)</p> Signup and view all the answers

What is the primary difference between a bank account and an investment?

<p>The purpose of the account (B)</p> Signup and view all the answers

Why is proof of income required when opening a bank account?

<p>To comply with FICA regulations (C)</p> Signup and view all the answers

What is the primary advantage of a Fixed Deposit Account?

<p>The high interest rate earned over a fixed period (D)</p> Signup and view all the answers

What is shown on a bank statement for each transaction?

<p>The transaction date, description, and amount (C)</p> Signup and view all the answers

What is the primary purpose of a Savings Account?

<p>To save money for short-term goals (B)</p> Signup and view all the answers

What is required to open a bank account?

<p>An identity document, proof of residence, and proof of income (A)</p> Signup and view all the answers

What is the primary purpose of a bank account's monthly maintenance fee?

<p>To cover the costs of providing banking services (B)</p> Signup and view all the answers

Which of the following is NOT a factor in calculating total bank fees?

<p>Account holder's age (A)</p> Signup and view all the answers

What is the effect of exceeding the allowed number of free withdrawals, deposits, and balance inquiries?

<p>The account holder will be charged additional transaction fees (A)</p> Signup and view all the answers

How do banks deduct monthly fees from an account?

<p>By automatically deducting the fee from the account (D)</p> Signup and view all the answers

What is the purpose of a bank account's opening balance?

<p>To show the amount of money in the account at the beginning of a period (A)</p> Signup and view all the answers

Which of the following is a type of transaction fee?

<p>Self-service banking fee (D)</p> Signup and view all the answers

What is the result of choosing the most appropriate bank account for your needs?

<p>You can reduce your transaction fees (C)</p> Signup and view all the answers

What is included in the calculation of total bank fees?

<p>Monthly maintenance fee, self-service banking fee, cash deposit fee, withdrawal fee, balance inquiry fee, and other transaction fees (B)</p> Signup and view all the answers

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