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</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</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</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)</p> Signup and view all the answers

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

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

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

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

    What is the primary purpose of a Fixed Deposit Account?

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

    What document is typically required to open a bank account?

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

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

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

    What is the main feature of a Credit Account?

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

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

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

    How do transaction fees vary?

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

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

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

    Which type of bank account typically has an overdraft facility?

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

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

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

    What is shown on a bank statement for each transaction?

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

    What is the primary purpose of a Savings Account?

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

    Which of the following is a type of transaction fee?

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

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