Banking Basics Quiz
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Questions and Answers

What is one function of an ATM?

  • Make online investments
  • Withdraw cash (correct)
  • Apply for loans
  • Check account balances

Which of the following services is offered by banks to assist small businesses?

  • Foreign Exchange
  • Internet Banking
  • Small Business Support & Advice (correct)
  • Credit Card Applications

What service allows customers to manage their accounts anytime online?

  • Internet Banking (correct)
  • Credit & Debit Cards
  • ATM Services
  • Financial Advice

What does foreign exchange involve?

<p>Buying foreign currency (C)</p> Signup and view all the answers

What is a key benefit of using credit and debit cards?

<p>Allows 'buy now, pay later' options (C)</p> Signup and view all the answers

What is the minimum age required to open a savings account on your own?

<p>16 years old (B)</p> Signup and view all the answers

What document is NOT required for opening a savings account for those under 16?

<p>School report card (B)</p> Signup and view all the answers

To open a savings account for someone under 16, who must accompany them to the bank?

<p>A parent or guardian (D)</p> Signup and view all the answers

Which item must be brought by individuals over 16 when opening a savings account?

<p>Birth certificate or ID book (D)</p> Signup and view all the answers

What must individuals over 16 present along with their bank statement or bill?

<p>A letter written by their parent/s (A)</p> Signup and view all the answers

What is the primary role of commercial banks?

<p>To lend money to individuals and businesses (D)</p> Signup and view all the answers

Which of the following banks is identified as an investment bank in South Africa?

<p>Rand Merchant Bank (D)</p> Signup and view all the answers

What form of currency did people primarily use before the advent of coins and paper money?

<p>Grain and valuable goods (D)</p> Signup and view all the answers

What is the annual interest amount the woman earns on her investment of R200 000 at a 10% interest rate?

<p>R20 000 (A)</p> Signup and view all the answers

What did goldsmiths do with the gold they stored from depositors?

<p>They lent it out to others for a fee (C)</p> Signup and view all the answers

How much does the entrepreneur repay the bank after two years?

<p>R248 000 (C)</p> Signup and view all the answers

How did ancient people retrieve their valuables from safe houses?

<p>By presenting a written order (B)</p> Signup and view all the answers

What is the total interest earned by the woman at the end of two years?

<p>R40 000 (C)</p> Signup and view all the answers

What is the profit that the bank keeps after transactions with both the woman and the entrepreneur?

<p>R8 000 (C)</p> Signup and view all the answers

What role do banks play in the economy regarding money flow?

<p>They help increase the money flow between consumers and producers. (A)</p> Signup and view all the answers

Flashcards

Money flow in economy

Continuous movement of money between consumers, producers, and businesses, representing economic activity.

Bank's role in money flow

Banks act as intermediaries, transferring money between savers and borrowers, facilitating investment and economic growth.

Interest rate

Percentage charged for borrowing money, or earned on saving money.

Entrepreneur

Person who starts and manages a business, often seeking loans for growth.

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Bank profit

Difference between the interest earned on loans and the interest paid on savings.

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Bank's Role

Banks act as intermediaries connecting savers and borrowers.

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Commercial Bank

A bank that lends directly to individuals and businesses.

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Investment Bank

A bank that helps companies find investors or loans.

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Ancient Safe Houses

Early forms of banking in Mesopotamia using safe storage for valuables.

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Goldsmiths & Banking

Goldsmiths began storing gold, and started lending it out based on deposits.

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Savings Account

A bank account specifically designed to save money.

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Account Requirements (under 16)

Requires a parent or guardian to open an account.

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Account Documents (over 16)

Needs ID, bank statement, or bill, and a parental letter from a police station.

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Account Documents (under 16)

Needs birth certificate/ID book, plus bank statement or bill.

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Parental Consent (over 16)

Letter from parent/s, stamped by a police station, is an important document for opening an account that requires identity and address.

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ATM Function

An ATM, or Automated Teller Machine, allows 24/7 cash withdrawals, deposits, fund transfers, and bill payments.

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Internet Banking Feature

Internet banking lets you access your account anytime to check balances, transfer funds and pay bills.

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Bank's Role

Banks help with secure money transfers between people and businesses.

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Foreign Exchange Service

Banks allow exchanging money from one currency to another and handle international financial transactions.

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Small Business Support

Specialized support offered by some banks to help small businesses thrive.

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