This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a CREDIT UNION? A) A nonprofit financial institution that is owned by its members and organized for their benefit. B) A type of short-term borrowing where a lender will extend high-interest credit based on a borrower's income and credit profile. C) Moving a balance from one credit card account to another. D) None of above. Show Answer Correct Answer: A) A nonprofit financial institution that is owned by its members and organized for their benefit. 2. All of these are required to open a bank account except ..... A) Valid Photo ID for proof of age / identity. B) Social Security Card. C) Money to open the account. D) A job. Show Answer Correct Answer: D) A job. 3. Which non-deposit institution makes loans based on the value of some tangible object, such as jewelry or electronics? A) Mortgage Companies. B) Check Cashing Outlets. C) Pawnshops. D) Investment Companies. Show Answer Correct Answer: C) Pawnshops. 4. Is a type of savings account that can offer a higher interest rate compared to traditional savings but lower rate than a CD. However, these accounts often require a higher minimum balance to be maintained. A) Money Market Account. B) Mutual Fund. C) Certificate of Deposit. D) Traditional Savings Account. Show Answer Correct Answer: A) Money Market Account. 5. Commercial Banks A) These banks also offer credit services, cash management and trade finance. B) Their clients include large corporations, other financial institutions. C) These manage the banking and financial needs of high net worth individuals. D) None of above. Show Answer Correct Answer: A) These banks also offer credit services, cash management and trade finance. 6. Which of the following are meant to store money which is NOT intended for daily expenses? A) Loan accounts. B) Checking accounts. C) Savings accounts. D) Credit accounts. Show Answer Correct Answer: C) Savings accounts. 7. How much money are you supposed to keep in your emergency funds? A) 4-6 months living expenses. B) 6-8 months living expenses. C) 1 year living expenses. D) None of above. Show Answer Correct Answer: B) 6-8 months living expenses. 8. A Bank Statement contains the following: A) How many loans a bank has given in a year. B) How many days a year the bank is open. C) When the bank transferred money. D) A list of transactions of someone's bank account. Show Answer Correct Answer: D) A list of transactions of someone's bank account. 9. The 9-digit number printed on a check that identifies the bank that holds the checking account and is responsible for payment is called the A) Transit number. B) Account number. C) Check number. D) NSF number. Show Answer Correct Answer: A) Transit number. 10. People who puts money in the banks A) Depositors. B) Withdrawers. C) Customers. D) Tellers. Show Answer Correct Answer: A) Depositors. 11. Which non-deposit institution chooses investment opportunities for long-term growth of their money and make mutual funds available. A) Life Insurance Companies. B) Pawn Shops. C) Consumer Finance Companies. D) Investment Companies. Show Answer Correct Answer: D) Investment Companies. 12. Account that lets you save money A) Minimum balance. B) Checking account. C) Interest. D) Savings account. Show Answer Correct Answer: D) Savings account. 13. Last year, First National Bank of Springfield paid $ 5.1 million in interest to depositors; it collected $ 7.8 million in interest from loans. Calculate the spread. A) $ 12.9 million. B) $ 2.7 million. C) $ 5.1 million. D) $ 3.8 million. Show Answer Correct Answer: B) $ 2.7 million. 14. Which savings account will earn you the least money? A) One that compounds interest daily. B) One that earns simple interest monthly. C) One that earns simple interest daily. D) One that compounds interest monthly. Show Answer Correct Answer: B) One that earns simple interest monthly. 15. The deposits for a fixed term can be deposited in ..... account A) Saving account. B) Current account. C) Recurring deposit account. D) Term or fixed deposit account. Show Answer Correct Answer: D) Term or fixed deposit account. 16. Writing a check is more secure than cash in all the circumstances EXCEPT A) It is safer to mail cash for a bill since someone could steal the check and cash it. B) Some bills cannot be paid with cash. C) Someone can steal your cash and you would be out that amount. D) You have proof of payment with a check. Show Answer Correct Answer: A) It is safer to mail cash for a bill since someone could steal the check and cash it. 17. Examples of these types of banks are Wells Fargo, Chase, and Regions A) Commercial banks. B) Credit unions. C) Charters. D) None of above. Show Answer Correct Answer: A) Commercial banks. 18. A blank endorsement on a check: A) Has no effect on the check. B) Cancels the check. C) Creates a check that can be cashed by anyone. D) Restricts the use of the check. Show Answer Correct Answer: C) Creates a check that can be cashed by anyone. 19. In which of the following case bank auditor is considered as disqualified? A) A body corporate other than LLP. B) Limited Liability Partnership. C) An individual who is a qualified CA. D) Partnership Firm. Show Answer Correct Answer: A) A body corporate other than LLP. 20. Allows customers to pay for purchases directly from their checking account. A) Credit card. B) Debit card. C) Savings account. D) Deposit. Show Answer Correct Answer: B) Debit card. ← PreviousNext →Related QuizzesBanking QuizzesBanking And Financial Institutions Quiz 1Banking And Financial Institutions Quiz 2Banking 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 9Banking And Financial Institutions Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books