This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 27 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All financial institutions are regulated by what agencies? A) Federal and State Agencies. B) Country Agencies. C) Government Agencies. D) Banking Agencies. Show Answer Correct Answer: A) Federal and State Agencies. 2. What is the largest source of funds for banks? A) Escrow account. B) Donations. C) Interest. D) Deposits. Show Answer Correct Answer: D) Deposits. 3. ..... is a written order to a bank to pay a stated amount to the specified recipient. A) Cash. B) Payment Order. C) Check. D) Credit Card. Show Answer Correct Answer: C) Check. 4. What do you call the process of bringing your checkbook register into agreement with the bank statement? A) Withdrawal. B) Deposit. C) Reconciliation. D) Endorsement. Show Answer Correct Answer: C) Reconciliation. 5. Which would somebody use to withdraw money from a checking account? A) Stored-value card. B) Debit card. C) Credit card. D) Gift card. Show Answer Correct Answer: B) Debit card. 6. When an employee's paycheck is automatically added to their bank account A) Direct Deposit. B) Automatic Payment. C) Debit Card. D) FDIC. Show Answer Correct Answer: A) Direct Deposit. 7. Which of the following financial services is best suited for saving money over a period of years? A) Certificate of Deposit. B) Demand Deposit. C) Checking Account. D) Mortgage Loan. Show Answer Correct Answer: A) Certificate of Deposit. 8. Member deposits into credit unions are insured by which of the following organizations? A) National Credit Union Agency (NCUA). B) Federal Deposit Insurance Corporation (FDIC). C) Federal Reserve (FED). D) US Treasury Department (USTD). Show Answer Correct Answer: A) National Credit Union Agency (NCUA). 9. Money used in exchange for goods and services needed by individuals, businesses, and governments. A) Store of value. B) Unit of value. C) Bond. D) Medium of exchange. Show Answer Correct Answer: D) Medium of exchange. 10. The percentage rate used to calculate interest A) Percentage. B) Rate of return. C) Interest rate. D) Interest accrual. Show Answer Correct Answer: C) Interest rate. 11. ..... formulates the monetary policy which should be followed by all banks A) Canara Bank. B) Vijayawada Bank. C) Reserve Bank of India. D) Corporation Bank. Show Answer Correct Answer: C) Reserve Bank of India. 12. Which type of account generally has the highest APY and requires the depositor to "lock away" money for a time? A) Checking account. B) Traditional savings account. C) Money market account. D) Certificate of deposit. Show Answer Correct Answer: D) Certificate of deposit. 13. Who insures bank deposits? A) U.S. Treasury Department. B) FDIC. C) Federal Reserve. D) NCUA. Show Answer Correct Answer: B) FDIC. 14. Your 2 year investment of $ 5, 300 earns 2.9% and is compounded annually . What will your total return be? A) $ 5, 304.46. B) $ 5, 611.86. C) $ 5, 613.28. D) $ 8, 819.73. Show Answer Correct Answer: B) $ 5, 611.86. 15. Name one advantage of bonds for their issuers A) Bondholders can't share in the profits of a company. B) Issuers must make fixed income payments even when it doen't make a profit. C) Issuers can't change interest payments even when rates have dropped. D) Bonds have the potential to be downgraded. Show Answer Correct Answer: A) Bondholders can't share in the profits of a company. 16. Interest is ..... A) A reward for saving and a reward for borrowing. B) A cost of saving and a reward for borrowing. C) A cost of borrowing and a cost of saving. D) A reward for saving and a cost of borrowing. Show Answer Correct Answer: D) A reward for saving and a cost of borrowing. 17. What does the FDIC? A) Federal Deposit In Corporations. B) Financial Depositing In Communities. C) Financing Depositing Insuring Corporation. D) Federal Deposit Insurance Corporation. Show Answer Correct Answer: D) Federal Deposit Insurance Corporation. 18. An automatic loan made to an account if the balance will not cover the checks written, debit card purchases A) Overdraft protection. B) Collateralized loan. C) Title loan. D) Payday loan. Show Answer Correct Answer: A) Overdraft protection. 19. The process of determining standards and procedures for dealing with judgmentaldecisions affecting other people is called: A) Mission. B) Standards. C) Ethics. D) Courtesy. Show Answer Correct Answer: C) Ethics. 20. What is the name of Central Bank in India? A) SBI. B) RBI. C) PNB. D) None of above. Show Answer Correct Answer: B) RBI. ← 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