This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 25 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a job of the Federal Reserve? A) Insure the safety of deposits. B) Regulate inflation so it doesn't get out of control. C) Acts as the Governments Bank. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. If your bank statement and personal transaction register do no match, you should do all of the following EXCEPT ..... A) Erase your balance and put in the bank statement amount since that is correct. B) Check to be sure that you didn't miss anything. C) Double check your math. D) Take your records to the bank for assistance. Show Answer Correct Answer: A) Erase your balance and put in the bank statement amount since that is correct. 3. Brooke is smart, financially stable, and is looking for a loan that offers a low interest rate and not much risk. Where should she apply for a loan at? A) Title Pawn. B) Payday Lender. C) Bank. D) Credit Union. Show Answer Correct Answer: D) Credit Union. 4. How can you avoid spending more than what is in your bank account? A) Check your bank statement once a month. B) Ask your financial institution to notify you when you are close to $ 0 in your account. C) Keep your own records to compare with your financial institution's records. D) None of the above. Show Answer Correct Answer: C) Keep your own records to compare with your financial institution's records. 5. Which financial institution is insured by NCUA? A) Commercial banks. B) Credit unions. C) Savings and loans. D) None of above. Show Answer Correct Answer: B) Credit unions. 6. Which is not an example of a stored-value card? A) Gift card. B) Credit card. C) Phone card. D) Subway smart card. Show Answer Correct Answer: B) Credit card. 7. For profit A) Fee. B) For profit. C) Not for profit. D) Profit. Show Answer Correct Answer: B) For profit. 8. Approximately how often does a financial institution send a bank statement through the mail? A) Yearly. B) Weekly. C) Quarterly. D) Monthly. Show Answer Correct Answer: D) Monthly. 9. What are smart cards? A) Debit or credit cards with a microchip. B) Debit cards you can not steal. C) Credit cards. D) None of above. Show Answer Correct Answer: A) Debit or credit cards with a microchip. 10. Sets out the regulatory framework for Malaysia's Islamic financial sector A) Islamic Financial Service Act 2013. B) Islamic Financial Service Act 2012. C) Islamic Financial Service Act 2011. D) Islamic Financial Service Act 2010. Show Answer Correct Answer: A) Islamic Financial Service Act 2013. 11. Form of business organization recognized by law as a separate legal entity with all rights and responsibilities of an individual, including the right to buy and sell legal property, Enter into legal contracts, sue and be sued A) Shareholder. B) Corporation. C) Stock. D) None of above. Show Answer Correct Answer: B) Corporation. 12. A certificate, usually issued by a government or banking institution, that allows the stated payee to receive cash on demand. Functions in a similar way to a cashier's check but available for purchase at more locations (post office, gas station, etc). Be careful, they are at high risk for fraud! A) Cash on Demand. B) Money Order. C) IOU. D) Promissory Note. Show Answer Correct Answer: B) Money Order. 13. In defining money as M1, economists exclude time deposits because: A) The intrinsic value of time deposits is nil. B) The purchasing power of time deposits is much less stable than that of checkable deposits and currency. C) They are not directly or immediately a medium of exchange. D) . they are not recognized by the Federal government as legal tender. Show Answer Correct Answer: C) They are not directly or immediately a medium of exchange. 14. A(n) ..... check is a check that is dated later than the date on which it is actually written. A) Bounced. B) Postdated. C) Returned. D) Bank. Show Answer Correct Answer: B) Postdated. 15. Banks are ..... A) Financial institutions. B) Agriculture institutions. C) Commercial institutions. D) Social institutions. Show Answer Correct Answer: A) Financial institutions. 16. Involves guiding people on the best ways to manage, invest or use their money A) Financial counseling. B) Depository institution. C) FDIC. D) Loan. Show Answer Correct Answer: A) Financial counseling. 17. A bank can sell only those NPA's which remained NPA for more than ..... year/years A) 5. B) 4. C) 3. D) 2. Show Answer Correct Answer: D) 2. 18. What type of check has been written but not yet returned to the bank for payment? A) Cleared. B) Stale. C) Forged. D) Outstanding. Show Answer Correct Answer: D) Outstanding. 19. When you borrow money from a bank, where does that money come from? A) The accounts of the bank's customers. B) The bank's own business checking account. C) A credit card company. D) The federal government. Show Answer Correct Answer: A) The accounts of the bank's customers. 20. ..... are financial instruments whose value is derived from other underlying assets. A) Derivatives. B) Mutual Funds. C) Insurance. D) None of above. Show Answer Correct Answer: A) Derivatives. ← 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