Banking Terminology Quiz

The annualized interest rate charged on borrowed money, representing the total cost of the loan.

The cost of borrowing money, typically calculated as a percentage of the loan amount.

An equity account is not a traditional bank account type; it represents ownership in a company.

A self-service machine that allows users to perform basic banking transactions, such as withdrawals and deposits.

The difference between a bank's assets and liabilities, indicating its financial strength.

An account designed for saving money and earning interest on deposited funds.

A U.S. government agency that insures deposits in banks and thrifts, providing stability and confidence in the banking system.

The act of confirming and balancing financial records to ensure accuracy and consistency.

The benchmark interest rate that influences overall lending rates in the economy.

A loan that is guaranteed by assets or collateral, reducing the lender's risk.

Gradual repayment of a loan through scheduled, fixed payments.

The maximum amount a borrower can access on a credit account.

The potential of a borrower failing to repay a loan, posing a financial risk to the lender.

The conversion of physical currency into a digital form, enabling electronic financial transactions.

The practice of selling accounts receivable to a third party for immediate cash.

The potential for financial loss due to fluctuations in interest rates affecting investments.

A global network that facilitates secure communication and messaging between financial institutions for international transactions.