This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 29 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An issue that arises when an account holder seeks to make a purchase or clear a check that their account cannot cover with the funds available. may also be referred to as "non-sufficient funds, " or "NSF" A) Insufficient Funds. B) Promissory note. C) Not Your Best Life. D) Electronic Funds Transfer. Show Answer Correct Answer: A) Insufficient Funds. 2. The memo line on a check is ..... A) Where you sign your name. B) Optional. C) Where you should write the amount. D) Where you should write the check number. Show Answer Correct Answer: B) Optional. 3. An organization that provides services related to money. A) Commercial bank. B) Charter. C) Financial institution. D) Insurance company. Show Answer Correct Answer: C) Financial institution. 4. Todd goes to a bank in order to get a Car Loan so he can buy a car. What is he going to give the bank as collateral? A) Savings account. B) Car title. C) Real estate. D) His wedding ring. Show Answer Correct Answer: B) Car title. 5. The stock market is a physical place. A) Yes, it's located in most major cities around the world. B) No, trading is all done online. C) Yes and No, there are physical places where stocks are sold, but they are also sold virtually. D) None of above. Show Answer Correct Answer: C) Yes and No, there are physical places where stocks are sold, but they are also sold virtually. 6. When you are making payments on a car and/or house you have a ..... A) Withdraw. B) Bankruptcy. C) Debt. D) Overdraw. Show Answer Correct Answer: C) Debt. 7. What is a SAVINGS ACCOUNT? A) A bank account that you cannot deposit your money from for a specific amount of time. B) A bank account that you can write checks from. C) A bank account that earns interest. D) None of above. Show Answer Correct Answer: C) A bank account that earns interest. 8. Deposits are insured by the Federal Deposit Insurance Corporation up to ..... per depositor. A) $ 100, 000. B) $ 150, 000. C) $ 200, 000. D) $ 250, 000. Show Answer Correct Answer: D) $ 250, 000. 9. The most common & safest financial institution A) Savings & loan. B) Commercial bank. C) Federal depoisitory. D) CD's & DDA's. Show Answer Correct Answer: B) Commercial bank. 10. The first ever Islamic financial institution established in the 1960s outside the MENA region is: A) Mit Ghamr Savings Bank. B) Dubai Islamic Bank. C) Bank Islam Malaysia. D) Tabung Hajj Malaysia. Show Answer Correct Answer: D) Tabung Hajj Malaysia. 11. Which statement is true of a bank? A) For-profit institution owned by shareholders. B) Generally offers lower fees and interest on loans than credit unions. C) Known for providing more personalized service. D) Accepts only members who meet certain qualifications. Show Answer Correct Answer: A) For-profit institution owned by shareholders. 12. The contract in Islamic banking that is related to the agricultural goods is: A) Istisna'. B) Musharakah. C) Salam. D) Ijarah. Show Answer Correct Answer: C) Salam. 13. What is the advantage of leasing? A) Provides 100% financing. B) No ownership. C) Lease rental payments are long-term expenses. D) Cost of maintaining the asset may be borne by the lessee. Show Answer Correct Answer: A) Provides 100% financing. 14. Which one of the the below options is not a characteristic of Bank? A) Lending loans. B) Withdrawal and payment. C) Accepting deposits. D) Mutual funds. Show Answer Correct Answer: D) Mutual funds. 15. Which of the following is NOT one of the Fed's overall goals? A) To stabilize prices. B) To encourage economic growth. C) To maintain interest rates. D) To encourage full employment. Show Answer Correct Answer: C) To maintain interest rates. 16. How do banks make a profit on loans? A) Over-charging customers. B) Greedy profit capitalists. C) By charging higher interest on loan paybacks than they pay interest on savings. D) Banks usually lose money on loans. Show Answer Correct Answer: C) By charging higher interest on loan paybacks than they pay interest on savings. 17. Once money is "loaded" , it can be used to make transactions just like a debit card, but unlike a debit it is NOT connected to a bank account. Often comes with heavy fees for basic services! Beware! A) Debit Card. B) Credit Card. C) Store Gift Card. D) Prepaid Card. Show Answer Correct Answer: D) Prepaid Card. 18. What does Inflation do to the value of money? A) Makes it go up. B) Makes it go down. C) Makes it stay the same. D) None of above. Show Answer Correct Answer: B) Makes it go down. 19. Well-functioning financial markets promote A) Inflation. B) Deflation. C) Unemployment. D) Economic growth. Show Answer Correct Answer: D) Economic growth. 20. Which are not the benefits of factoring? A) Financing the supplier. B) Maintenance of the receivables account. C) Provide 100% financing. D) Protection against default in payment by account receivable. Show Answer Correct Answer: C) Provide 100% financing. ← 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