This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is the best description of a 'money market' A) Made up of all those people and organisations who want money and all the people and organisations who are willing and able to supply money. B) Any place where buyers and sellers come together. C) The money used to pay for goods and services. D) A bank at which people can open an account at. Show Answer Correct Answer: A) Made up of all those people and organisations who want money and all the people and organisations who are willing and able to supply money. 2. The price paid for using someone else's money A) Interest rate. B) Debit card. C) Credit card. D) Interest. Show Answer Correct Answer: D) Interest. 3. ..... is money added to a checking or savings account. A) Withdraw. B) Check. C) Put in money. D) Deposit. Show Answer Correct Answer: D) Deposit. 4. Under section 38(1) of the BAFIA 1989, the banking institutions are required to maintain a ..... A) Reserves ratio. B) Intermediate liquidity ratio. C) Minimum liquidity ratio. D) Maximum liquidity ratio. Show Answer Correct Answer: C) Minimum liquidity ratio. 5. The ease with which investment can be converted into cash is ..... A) Low risk. B) Low return. C) Easement. D) Liquidity. Show Answer Correct Answer: D) Liquidity. 6. A company owned by families or a small number of investors and do not issue stock to the public. A) Public company. B) Industry. C) Private company. D) Portfolio. Show Answer Correct Answer: C) Private company. 7. A ..... savings bank is a financial institution owned by the depositors, to whom the profits go. A) Federal. B) Depositors. C) Mutual. D) Commercial. Show Answer Correct Answer: C) Mutual. 8. What is the function of a municipal bond? A) To provide money for a firm to expand its business. B) To provide money for the federal government to pay its debts. C) To provide money for local government to finance public schools. D) To provide money for individuals who are willing to take high risks. Show Answer Correct Answer: C) To provide money for local government to finance public schools. 9. Anything of value that is accepted in return for goods or services is ..... A) Products. B) Credit. C) Money. D) Cash. Show Answer Correct Answer: C) Money. 10. Marisol has written a $ 500 check to Stephen, but she has only $ 300 in her account and it is returned unpaid to Stephen. Marisol has written a A) Floating check. B) Promissory note. C) Postdated check. D) Bounced check. Show Answer Correct Answer: D) Bounced check. 11. Checkable deposits are classified as money because A) They can be readily used in purchasing goods and paying debts. B) Banks hold currency equal to the value of their checkable deposits. C) They are ultimately the obligations of the Treasury. D) They earn interest income for the depositor. Show Answer Correct Answer: A) They can be readily used in purchasing goods and paying debts. 12. A document where you record all checks and deposits and debit transactions for a checking account is called a A) Check register. B) Bank statement. C) Bank form. D) Deposit slip. Show Answer Correct Answer: A) Check register. 13. Auditor of SBI is appointed by ..... A) Shareholders. B) Central Govt. C) CAG. D) BOD. Show Answer Correct Answer: C) CAG. 14. Which of the following is an example of a Private Financial Institution? A) Walmart. B) Best Buy. C) Wells Fargo. D) The Federal Reserve. Show Answer Correct Answer: C) Wells Fargo. 15. Companies that give out small loans in return for a portion of an upcoming paycheck. They generally charge much higher interest on loans than other institutions. A) Title loan. B) Pay day lender. C) Credit union. D) Mortgage broker. Show Answer Correct Answer: B) Pay day lender. 16. The largest stock exchange in the world is ..... A) LSE. B) Korea Exchange. C) Shanghai Stock Exchange. D) NYSE. Show Answer Correct Answer: D) NYSE. 17. How do banks help businesses? A) Making loans. B) Issuing credit cards. C) Sharing profits. D) Issuing insurance. Show Answer Correct Answer: A) Making loans. 18. What does the bank send you at the end of the month? A) Bill. B) Bank Statement. C) Extra Money. D) Junk Mail. Show Answer Correct Answer: B) Bank Statement. 19. Which of the following situations would we sign the deposit slip? A) Deposit Checks. B) Deposit Cash. C) When you deposit amounts over $ 100. D) When you are taking cash out of the deposit. Show Answer Correct Answer: D) When you are taking cash out of the deposit. 20. Fill in the blanks with a correct word. Miriam has her own bank account. She is the ..... A) Account balance. B) Joint account. C) Bank statement. D) Account holder. Show Answer Correct Answer: D) Account holder. ← 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