This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A ..... is a share of ownership in a company. A) Bond. B) Stock. C) Mutual fund. D) Money market account. Show Answer Correct Answer: B) Stock. 2. ..... do not take or hold deposits. They earn money selling specific services or policies. A) Members. B) Non-Deposit Institutions. C) Pawn Shops. D) Deposit Institutions. Show Answer Correct Answer: B) Non-Deposit Institutions. 3. When it comes to saving money, what is a good rule of thumb? A) Keep most of your savings in your checking account. B) Put aside money for savings each month. C) Choose the savings account with the lowest interest rate. D) Put anything you can't afford on your credit card. Show Answer Correct Answer: B) Put aside money for savings each month. 4. Bonus Question:What district does the Atlanta Federal Reserve Bank belong to? A) 5. B) 6. C) 8. D) 9. Show Answer Correct Answer: B) 6. 5. A sum of money borrowed for a certain amount of time is called a ..... A) Loan. B) Down payment. C) Interest. D) Borrow. Show Answer Correct Answer: A) Loan. 6. Which of the below statement is true with regard to Auditor of Banks? A) He should acquire knowledge of client's business. B) He should not have access to books of accounts of banks. C) He should do routine checking of all transactions. D) He cannot be a Limited Liability Partnership firm. Show Answer Correct Answer: A) He should acquire knowledge of client's business. 7. ..... is safe storage of funds for future use. A) Savings Services. B) Payment Services. C) Loan Options. D) Investment Advice. Show Answer Correct Answer: A) Savings Services. 8. Which bank Formulates the monetary policy? A) Reserve Bank of India. B) Bank of Baroda. C) Canara Bank. D) State Bank of India. Show Answer Correct Answer: A) Reserve Bank of India. 9. Delivery of financial services at affordable costs to the disadvantaged Low income segments of the society known as ..... A) A. Credit creation. B) B. Financial exclusion. C) C. Financial Inclusion. D) D .Consumer credit. Show Answer Correct Answer: C) C. Financial Inclusion. 10. Why do banks send customers a statement of their accounts every month? A) Reconcile the statement with their check registers. B) List all of the debits they have made with their debit cards. C) Verify their name and address on their account. D) Record all of the checks they have written. Show Answer Correct Answer: A) Reconcile the statement with their check registers. 11. Which type of account allows your deposited money to be withdrawn at any time by writing a check? A) Savings Account. B) Certificate of Deposit. C) Certified Cash Account. D) Checking Account. Show Answer Correct Answer: D) Checking Account. 12. What might happen if the government did not insure bank deposits? A) Banks would be robbed far more often. B) People would lose their savings if their banks went out of business. C) Banks would have to buy safe with extremely thick metal walls. D) Banks could no longer make loans to their customers. Show Answer Correct Answer: B) People would lose their savings if their banks went out of business. 13. Buying and selling of government securities by the central bank from/to banks is called? A) Open market operations. B) Margin. C) Banking. D) None of above. Show Answer Correct Answer: A) Open market operations. 14. Retail Banks A) Tailor their services to business clients. B) They provide a range of services such as checking, savings and current accounts, loan and mortgage. C) These manage the banking and financial needs of high net worth individuals. D) These banks also offer credit services, cash management and trade finance. Show Answer Correct Answer: B) They provide a range of services such as checking, savings and current accounts, loan and mortgage. 15. Which of the following actions would help you lower the risks of investing? A) Invest more money. B) Invest less money. C) Invest directly in businesses and avoid financial intermediaries. D) Diversify your investments. Show Answer Correct Answer: D) Diversify your investments. 16. There are the derivatives market except.. A) Commodity Futures. B) KLSE CI Futures. C) Unit Trust. D) KLIBOR Futures. Show Answer Correct Answer: C) Unit Trust. 17. When you have taken out more money than you have in your bank account. A) Endorse. B) Overdrawn. C) Debit card. D) Statement. Show Answer Correct Answer: B) Overdrawn. 18. A card sold in specified dollar amounts that can be used to purchase products or services A) Prepaid cards. B) Debit cards. C) Credit cards. D) Check cards. Show Answer Correct Answer: A) Prepaid cards. 19. How do banks earn their money? A) High initial bank account opening fees. B) Allocating customers' money for daily expenses and company's money for quarterly bills. C) Lending money at higher interest rates than what they are paying out for savings accounts. D) Circulating printed money into the economy and keeping a percentage for daily operations. Show Answer Correct Answer: C) Lending money at higher interest rates than what they are paying out for savings accounts. 20. When using your debit card for a purchase it is safest to run it as A) Credit and signing it. B) Debit and entering your PIN. C) Its never safe. D) Charge and signing it. Show Answer Correct Answer: A) Credit and signing it. ← 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