Gr 12 Math Lit: Ch 1.7 Banking

What is the purpose of a monthly maintenance fee?

To provide additional services

To calculate interest

To maintain the account (correct)

To charge for specific transactions

Which type of interest is calculated on the current balance, including previously earned interest?

Annual Interest

Monthly Interest

Simple Interest

Compound Interest (correct)

What is the total cost of a loan?

The principal amount only

The principal and the service fee

The principal and the monthly fee

The principal and the accumulated interest (correct)

What is the primary purpose of a savings account?

To earn interest and save for short-term goals Signup and view all the answers

How can you reduce banking fees?

By using own bank's ATMs and limiting over-the-counter transactions Signup and view all the answers

What is a key feature of a fixed deposit account?

Higher interest rates Signup and view all the answers

What is the result when total expenditure exceeds total income?

Loss Signup and view all the answers

What is the main purpose of a credit account with a credit card?

To allow purchasing items on credit, to be paid later Signup and view all the answers

What is the formula to calculate profit?

Total Income - Total Expenditure Signup and view all the answers

What is indicated by the 'balance' column in a bank statement?

The account balance after each transaction Signup and view all the answers

What is the purpose of a service fee?

To provide additional services Signup and view all the answers

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

Opening Balance Signup and view all the answers

What is income?

Money received from work, investments, or other sources Signup and view all the answers

What is a debit transaction in a bank statement?

An amount paid out of the account Signup and view all the answers

Why do banks charge fees for their services?

To cover the costs of providing services Signup and view all the answers

What is the main difference between a debit card and a credit card?

The method of payment Signup and view all the answers

What is the primary feature of a cheque or current account?

Easy access to funds and frequent deposits and withdrawals Signup and view all the answers

What is the purpose of a fixed deposit account?

For investing a lump sum over a fixed period Signup and view all the answers

What is shown on a bank statement?

All transactions in an account over a specific period Signup and view all the answers

Who is the account holder?

The person whose name the account is in Signup and view all the answers

What is a debit transaction in a bank statement?

An amount paid out of the account Signup and view all the answers

Why do banks charge banking fees?

To offset the cost of providing services Signup and view all the answers

What is the difference between a debit card and a credit card?

A debit card deducts directly from the account, while a credit card allows credit Signup and view all the answers

What is the purpose of a bank statement?

To keep a record of all transactions in an account over a specific period Signup and view all the answers

What is the primary purpose of transaction fees?

To charge for specific transactions Signup and view all the answers

How can simple interest be described?

Calculated on the original principal only Signup and view all the answers

What happens when total expenditure is less than total income?

Profit occurs Signup and view all the answers

Why is it recommended to limit over-the-counter transactions?

To reduce transaction fees Signup and view all the answers

What is the relationship between the principal and the total cost of a loan?

The principal is less than the total cost Signup and view all the answers

What is the result when total income exceeds total expenditure?

Profit occurs Signup and view all the answers

What can be said about compound interest?

It is calculated on the current balance Signup and view all the answers

What is the main difference between profit and loss?

Profit occurs when income exceeds expenditure, while loss occurs when expenditure exceeds income Signup and view all the answers

What is the primary benefit of using a fixed deposit account over a savings account?

Higher interest rates Signup and view all the answers

Which of the following is a characteristic of a debit transaction in a bank statement?

A decrease in the account balance Signup and view all the answers

What is the main purpose of a bank statement?

To show all transactions in an account over a specific period Signup and view all the answers

Which type of account is used for investing a lump sum over a fixed period?

Fixed Deposit Account Signup and view all the answers

What is the term for the amount in the account at the end of the period?

Closing Balance Signup and view all the answers

Which of the following is a characteristic of a credit account with a credit card?

Monthly repayments Signup and view all the answers

What is the primary purpose of a cheque or current account?

To deposit and withdraw money regularly Signup and view all the answers

What is the purpose of banking fees?

To provide services to account holders Signup and view all the answers

Which of the following is an example of a transaction fee?

Service fee for ATM usage Signup and view all the answers

What is the key difference between simple interest and compound interest?

Simple interest is calculated on the original principal, while compound interest is calculated on the current balance. Signup and view all the answers

What is the main purpose of limiting over-the-counter transactions?

To reduce transaction fees Signup and view all the answers

Which of the following statements is true about income and expenditure?

Profit occurs when income exceeds expenditure. Signup and view all the answers

What is the relationship between the principal and the total cost of a loan?

The principal is the amount borrowed, and the total cost includes the principal and interest. Signup and view all the answers

Which of the following is a type of fee that can be avoided by using one's own bank's ATMs?

Additional charge from other banks Signup and view all the answers

What is the outcome when total income is less than total expenditure?

Loss Signup and view all the answers

Which of the following is a key feature of compound interest?

It is calculated on the current balance, including previously earned interest. Signup and view all the answers

Gr 12 Math Lit: Ch 1.7 Banking

Questions and Answers

What is the purpose of a monthly maintenance fee?

Which type of interest is calculated on the current balance, including previously earned interest?

What is the total cost of a loan?

What is the primary purpose of a savings account?

How can you reduce banking fees?

What is a key feature of a fixed deposit account?

What is the result when total expenditure exceeds total income?

What is the main purpose of a credit account with a credit card?

What is the formula to calculate profit?

What is indicated by the 'balance' column in a bank statement?

What is the purpose of a service fee?

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

What is income?

What is a debit transaction in a bank statement?

Why do banks charge fees for their services?

What is the main difference between a debit card and a credit card?

What is the primary feature of a cheque or current account?

What is the purpose of a fixed deposit account?

What is shown on a bank statement?

Who is the account holder?

What is a debit transaction in a bank statement?

Why do banks charge banking fees?

What is the difference between a debit card and a credit card?

What is the purpose of a bank statement?

What is the primary purpose of transaction fees?

How can simple interest be described?

What happens when total expenditure is less than total income?

Why is it recommended to limit over-the-counter transactions?

What is the relationship between the principal and the total cost of a loan?

What is the result when total income exceeds total expenditure?

What can be said about compound interest?

What is the main difference between profit and loss?

What is the primary benefit of using a fixed deposit account over a savings account?

Which of the following is a characteristic of a debit transaction in a bank statement?

What is the main purpose of a bank statement?

Which type of account is used for investing a lump sum over a fixed period?

What is the term for the amount in the account at the end of the period?

Which of the following is a characteristic of a credit account with a credit card?

What is the primary purpose of a cheque or current account?

What is the purpose of banking fees?

Which of the following is an example of a transaction fee?

What is the key difference between simple interest and compound interest?

What is the main purpose of limiting over-the-counter transactions?

Which of the following statements is true about income and expenditure?

What is the relationship between the principal and the total cost of a loan?

Which of the following is a type of fee that can be avoided by using one's own bank's ATMs?

What is the outcome when total income is less than total expenditure?

Which of the following is a key feature of compound interest?

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