This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Moving money from one account to another is called a ..... A) Swap. B) Transfer. C) Glide. D) Movement. Show Answer Correct Answer: B) Transfer. 2. What is the biggest factor that affects someone's credit? A) Number of accounts. B) Amount of debt. C) Payment history. D) Age of accounts. Show Answer Correct Answer: C) Payment history. 3. What is an OVERDRAFT FEE? A) A fee you pay to see Mr. French's three legged horse. B) A charge when more money is spent than what it is in the account. C) Moving a balance from one account to another. D) None of above. Show Answer Correct Answer: B) A charge when more money is spent than what it is in the account. 4. The mechanism a nation uses to provide and manage money for itself is called a(n) ..... A) Banking system. B) Monetary system. C) Financial system. D) Inventory system. Show Answer Correct Answer: B) Monetary system. 5. A person who gets in legal trouble for using checks unlawfully is committing: A) Robbery. B) Check Fraud. C) Loss of creditworthiness. D) Bank Fraud. Show Answer Correct Answer: B) Check Fraud. 6. A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit. A) Savings account. B) Credit card. C) Credit union. D) Safe-deposit box. Show Answer Correct Answer: B) Credit card. 7. A ..... is a short-term credit investment created by a non-financial firm and guaranteed by a bank to make payment. A) Certificate of deposit. B) Commercial paper. C) Bankers' acceptance. D) None of above. Show Answer Correct Answer: C) Bankers' acceptance. 8. When you put money into your checking account, you will fill out a A) Check stub. B) Check register. C) Signature card. D) Deposit slip. Show Answer Correct Answer: D) Deposit slip. 9. What is a check that appears on your bank statement called? A) Outstanding check. B) Cleared check. C) Bounced check. D) Good check. Show Answer Correct Answer: A) Outstanding check. 10. Income = ..... + Savings A) Needs. B) Wants. C) Expenses. D) Discretionary. Show Answer Correct Answer: C) Expenses. 11. The movement of money electronically from one financial institution to another. A) Fast cash. B) Electronic financial transitioning. C) Automated teller machine. D) Electronic funds transfer. Show Answer Correct Answer: D) Electronic funds transfer. 12. How does the taxpexempt status of municipal bonds benefit consumers throughout the US free enterprise system? A) It make people more likely to buy corporate bonds. B) It makes people more likely to buy municipal bonds. C) It increases the costs of projects like roads and bridges. D) It raises the amount of taxes that the federal government collects. Show Answer Correct Answer: B) It makes people more likely to buy municipal bonds. 13. Why does the United States Government issues savings bonds? A) To improve its bond rating. B) To earn interest. C) To pay for government projects. D) To raise taxes. Show Answer Correct Answer: C) To pay for government projects. 14. A bank statement shows A) All transactions from the statement period. B) The transactions that have cleared in the statement period. C) What your correct balance is. D) All of the checks you have written for the year. Show Answer Correct Answer: B) The transactions that have cleared in the statement period. 15. Which is the right of owner of hire purchase? i. To forfeit the depositii. To repossess the goodsiii. To claim damages for any loss sufferediv. All of above A) I. B) Ii. C) Iii. D) Iv. Show Answer Correct Answer: D) Iv. 16. Beyonce wanted to buy a hot tub and borrows $ 7, 400 from a bank with an interest rate of 10.5% SIMPLE interest. If she is able to pay it back in 1/4 of a year how much does she have to pay back total? A) $ 7, 594.25. B) $ 7710.80. C) $ 194.25. D) $ 26, 825.00. Show Answer Correct Answer: A) $ 7, 594.25. 17. Money you take out of your bank account A) Withdrawal. B) Deposit slip. C) Service charge. D) Deposit. Show Answer Correct Answer: A) Withdrawal. 18. A point is a value equal to ..... of a mortgage loan. A) 2 percent. B) 10 percent. C) 1 percent. D) 5 percent. Show Answer Correct Answer: C) 1 percent. 19. A box-usually located inside a bank-which is used to store valuables, is rented from the institution and can be accessed with keys, pin numbers or some other security pass. A) Bond. B) Safe-deposit box. C) Stock. D) Savings account. Show Answer Correct Answer: B) Safe-deposit box. 20. Are documents that function as cash but can be replaced if lost or stolen A) Certified checks. B) Cashier's checks. C) Money orders. D) Traveler's checks. Show Answer Correct Answer: D) Traveler's checks. Next →Related QuizzesBanking QuizzesBanking And Financial Institutions Quiz 2Banking And Financial Institutions Quiz 3Banking And Financial Institutions Quiz 4Banking And Financial Institutions Quiz 5Banking And Financial Institutions Quiz 6Banking And Financial Institutions Quiz 7Banking And Financial Institutions Quiz 8Banking And Financial Institutions Quiz 9Banking And Financial Institutions Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books