This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Currency in circulation is part of: A) M 1 only. B) M 2 not including M1. C) Neither M1 nor M2. D) Both M1 and M2. Show Answer Correct Answer: D) Both M1 and M2. 2. When the Fed makes more money available, interest rates tend to ..... A) Return to normal. B) Level off. C) Go down. D) Go up. Show Answer Correct Answer: C) Go down. 3. How are the Dow Jones Industrial and the S & P 500 similar? A) Both report the daily change in price of all stocks. B) Both rose in value during the 2007-009 bear market. C) Both measure how well hunderds of stocks are doing. D) Both track the performance of the stock market. Show Answer Correct Answer: D) Both track the performance of the stock market. 4. An account that allows quick access to funds for transactions A) Online banking. B) Savings tool. C) Savings account. D) Checking account. Show Answer Correct Answer: D) Checking account. 5. Which type of account should generally be used for ordinary purchases and monthly expenses? A) Checking account. B) Traditional savings account. C) Money market account. D) Certificate of deposit. Show Answer Correct Answer: A) Checking account. 6. Allows customers to complete certain transactions from a secured internet site by using a username and password from any place in the world with internet access A) Savings tool. B) Checking account. C) Online banking. D) Savings account. Show Answer Correct Answer: C) Online banking. 7. This type of money order is typically issues by travel agencies, supermarkets, pharmacies and convenience stores. A) Express money order. B) Bank money order. C) Postal money order. D) Telegraphic money order. Show Answer Correct Answer: A) Express money order. 8. Category 1 of merchant banker can act as: ..... A) All issue management functions. B) Underwriter. C) Consultant. D) None of above. Show Answer Correct Answer: A) All issue management functions. 9. An account at a depository institution that is designed to hold money not spent on current consumption A) ATM. B) Interest. C) Savings account. D) Interest rate. Show Answer Correct Answer: C) Savings account. 10. Which of the following is not a factor in modern banking? A) Mergers. B) Competition. C) Communication. D) Technology. Show Answer Correct Answer: C) Communication. 11. Under ....., the banking institutions are required to observe a minimum liquidity ratio. A) S 37(1) of the BAFIA 1989. B) S 38(1) of the BAFIA 1989. C) S 39(1) of the BAFIA 1989. D) S 40(1( of the BAFIA 1989. Show Answer Correct Answer: B) S 38(1) of the BAFIA 1989. 12. If you wanted to purchase shares of a company, whom would you contact? A) The New York Stock Exchange. B) A commodities broker. C) A stockbroker. D) A day trader. Show Answer Correct Answer: C) A stockbroker. 13. If you are estimating your total expenses for school next semester, you are using money primarily as: A) A medium of exchange. B) A store of value. C) A unit of account. D) An economic investment. Show Answer Correct Answer: C) A unit of account. 14. An endorsement that allows the owner of a check to transfer the right to cash the check to someone else. A) Special. B) Restricted. C) Blank. D) Comprehensive. Show Answer Correct Answer: A) Special. 15. A purchased certificate used to pay a specified amount to a particular payee. A) Certified checks. B) Cashier's checks. C) Money orders. D) Traveler's checks. Show Answer Correct Answer: C) Money orders. 16. When you put money into a checking account, you fill out a A) Signature card. B) Reconciliation form. C) Deposit slip. D) Bank statement. Show Answer Correct Answer: C) Deposit slip. 17. Financial institutions that accept deposits and make loans are called A) Exchanges. B) Banks. C) Over the counter Markets. D) None of above. Show Answer Correct Answer: B) Banks. 18. A ..... can provide legal proof of payment A) Cancelled check. B) Transaction register. C) Bank statement. D) Internet printout. Show Answer Correct Answer: A) Cancelled check. 19. What is one difference between the New York Stock Exchanve and the Nasdaq stock market? A) Nasdaq focuses on new-technology and technology stockd. B) Nasdaqs trading floor is in Chicago. C) The NYSE serves the over-the counter market. D) The NYSE is new and smaller. Show Answer Correct Answer: A) Nasdaq focuses on new-technology and technology stockd. 20. ..... provide services similar to a bank. The main difference is that a ..... only provides these services to its members A) Title loan. B) Pawn loan. C) Credit Union. D) None of above. Show Answer Correct Answer: C) Credit Union. ← 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