This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The correct order in the principles of good lendingi. Purpose-Amount-Duration-Repayments-Securityii. Amount-Purpose-Repayments-Duration-Securityiii. Duration-Amount-Purpose-Repayments-Securityiv. Security-Purpose-Duration-Amount-Repayments A) I. B) Ii. C) Iii. D) Iv. Show Answer Correct Answer: A) I. 2. When the bank pays a transaction for you because you don't have enough money in your account it's called an ..... A) Withdrawal. B) Overdraft. C) Bank. D) Income. Show Answer Correct Answer: B) Overdraft. 3. Financial institutions that obtain funds from the public and use them to finance the loans and investments that provide the majority of their income. A) Loan companies. B) Depository institutions. C) Non depository institutions. D) Brokerage houses. Show Answer Correct Answer: B) Depository institutions. 4. A merchant banking is a financial institutions conducting money market activities and a lending A) Underwriting and financial advice. B) Investment service. C) All of above. D) None of above. Show Answer Correct Answer: C) All of above. 5. How would you reconcile your bank account to avoid spending more than you have? A) Contact your financial institution to read your transactions for the past month. B) Compare your own records of your spending with your financial institution's records. C) Review your bank statement once at the end of the month. D) None of the above. Show Answer Correct Answer: B) Compare your own records of your spending with your financial institution's records. 6. Two types includes mutual savings and loan associations and stock savings and loans association. A) Credit unions. B) Savings and loans associations. C) Commercial banks. D) Insurance companies. Show Answer Correct Answer: B) Savings and loans associations. 7. Poorly performing financial markets can be the cause of A) Wealth. B) Poverty. C) Financial stability. D) Financial expansion. Show Answer Correct Answer: B) Poverty. 8. What type of investment offers the most liquidity? A) Stocks. B) Mutual funds. C) CD's. D) Checking account. Show Answer Correct Answer: D) Checking account. 9. A profit is ..... A) Money earned. B) Money spent. C) Money borrowed. D) Money lent. Show Answer Correct Answer: A) Money earned. 10. Online bank accounts are available ..... A) During office hours. B) Until midnight. C) Monday to Friday. D) 24 hours a day. Show Answer Correct Answer: D) 24 hours a day. 11. Type of savings plan where money is left on deposit for a stated period of time. A) Certificate of Deposit (CD). B) Money Market. C) Savings Account. D) Checking Account. Show Answer Correct Answer: A) Certificate of Deposit (CD). 12. In Murabahah financing, when an orderer is asked to pay a certain amount of money in advanced to the seller in order to show seriousness towards the transaction that can later be refunded upon certain conditions, the contract used is called: A) Arboun. B) Hamish Jiddiyyah. C) Down payment. D) All options are correct. Show Answer Correct Answer: B) Hamish Jiddiyyah. 13. How do banks make profits? A) By charging people interest to borrow money. B) By charging people interest to keep their money there. C) By charging a fee every time a customer writes a check or uses a debit card. D) None of the above-banks are nonprofit institutions. Show Answer Correct Answer: A) By charging people interest to borrow money. 14. Financial institutions that do not take or hold deposits A) Depositor. B) Depository intermediary. C) Wholesale bank. D) Nondepository intermediary. Show Answer Correct Answer: D) Nondepository intermediary. 15. Which of the following pays the highest interest rate? A) CD. B) Savings account. C) Checking account. D) Money market account. Show Answer Correct Answer: A) CD. 16. PIN stands for ..... A) Payment information number. B) Personal information number. C) Personal identification number. D) Payment identification number. Show Answer Correct Answer: C) Personal identification number. 17. Also called a check card, allows you to make purchases by swiping your card through a point of sale (POS) terminal that is usually located at the merchant's checkout counter. A) Debit card. B) Credit card. C) Social security card. D) ATM card. Show Answer Correct Answer: A) Debit card. 18. Checking accounts and debit cards are examples of a financial institution's A) Lending services. B) Saving services. C) Payment services. D) Investment services. Show Answer Correct Answer: C) Payment services. 19. Protects you from overdrawing your account. Money is automatically taken from your savings account if you write a check or make an ATM withdrawal for too much money. A) Withdraw Protection. B) Overdraft Protection. C) Blanket protection. D) Maximum Protection. Show Answer Correct Answer: B) Overdraft Protection. 20. ..... is the act of opening accounts at two or more institutions and using the "floattime" of available funds to crate fraudulent balances. A) Counterfeiting. B) Reconciliation. C) Check kiting. D) Forgery. Show Answer Correct Answer: C) Check kiting. ← PreviousNext →Related QuizzesBanking QuizzesBanking And Financial Institutions Quiz 1Banking 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books