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Banking Today

Quiz by David Trees

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Q 1/3
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What is the differnce between simple and compound interest?
29
Simple and compound interest are two namemes for the same thing.
simple interest is paid once a year; compound interest is paid at least quarterly
Simple interest is paid as long as the money stays in the bank.

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3 questions

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Q1
What is the differnce between simple and compound interest?
Simple and compound interest are two namemes for the same thing.
simple interest is paid once a year; compound interest is paid at least quarterly
Simple interest is paid as long as the money stays in the bank.
60s
Q2
Why are funds in a checking accounts called demand deposits?
They are available whenever the depositor writes a check for them.
They are kept without interest by the bank.
They can be paid to anyone who writes a check for them.
60s
Q3
How does a bank make most of its profit on its business?
by collecting fees on credit card purchases
by paying out less in interest on deposits than it earns in interest on loans.
by receiving fees from the government
60s

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