This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 36 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 36 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Money received is called ..... A) Income. B) Insurance. C) Savings. D) None of above. Show Answer Correct Answer: A) Income. 2. A share of common stock is a claim on a corporation's A) Debt. B) Liabilities. C) Expenses. D) Earnings and assets. Show Answer Correct Answer: D) Earnings and assets. 3. Financial institution that makes money by issuing loans. A) Finance company. B) Investment bank. C) Nondepository institution. D) Securities firm. Show Answer Correct Answer: A) Finance company. 4. Caiden earned $ 475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually . What will be his balance after 15 year? A) $ 827.52. B) $ 831.10. C) $ 839.45. D) $ 846.80. Show Answer Correct Answer: B) $ 831.10. 5. Which of the following will most benefit you financially? A) A savings account that compound interest daily. B) A savings account that compound interest monthly. C) A savings account that compound interest yearly. D) A savings account that does not compound interest. Show Answer Correct Answer: A) A savings account that compound interest daily. 6. All of the following can happen if you bounce a check (write an overdraft) EXCEPT A) The unpaid check will be returned to the payee's bank. B) You will be charged substantial fee by your bank. C) The payee, if a business, will charge you a fee for a bounced check. D) You will be arrested for check fraud. Show Answer Correct Answer: D) You will be arrested for check fraud. 7. Which of the following typically has the lowest fees or costs to use? A) Debit Card. B) Credit Card. C) Cash Advance. D) Payday Loan. Show Answer Correct Answer: A) Debit Card. 8. Use the RULE OF 72 to calculate how long it will take for your money to double if it's earning 6% in interest. A) 12 years. B) 16 years. C) 36 years. D) 72 years. Show Answer Correct Answer: A) 12 years. 9. Savings and Investment accounts offered by Islamic banks such as the case of BISB and KFH utilize the contracts below, except: A) Mudharabah Muqayyadah. B) Ijarah. C) Mudharabah Mutlaqah. D) Wakalah. Show Answer Correct Answer: B) Ijarah. 10. Which account is commonly opened by people to save their money for future needs? A) Savings bank account. B) Current account. C) Recurring deposit account. D) Term or fixed deposit account. Show Answer Correct Answer: C) Recurring deposit account. 11. Which of the following would you need to do to make sure that $ 750, 000 worth of your deposits were insured and backed by the federal government? A) Apply for both FDIC and NCUSIF insurance. B) Keep your deposits in a bank's safety deposit box. C) Place $ 250, 000 in accounts in three different financial institutions. D) Maintain a reconciled bank statement. Show Answer Correct Answer: C) Place $ 250, 000 in accounts in three different financial institutions. 12. Amount of money in your account at a given time. A) Bank. B) Bank account. C) Balance. D) Application. Show Answer Correct Answer: C) Balance. 13. There should be effective screening done at the time of ..... of credit cards A) Cancellation. B) Issue. C) Payment. D) Renewal. Show Answer Correct Answer: B) Issue. 14. Which of the following transactions will REDUCE your checking account balance immediately A) Writing your monthly rent check which you will mail tomorrow. B) Using your credit card to pay for your school books. C) Using your debit card to pay for groceries at the supermarket. D) Depositing a check at a local bank branch. Show Answer Correct Answer: C) Using your debit card to pay for groceries at the supermarket. 15. ..... is the ability to transfer money to others. A) Savings Services. B) Payment Services. C) Loan Options. D) Investment Advice. Show Answer Correct Answer: B) Payment Services. 16. High-interest rates might cause a corporation to ..... building a new plant that would provide more jobs. A) Complete. B) Consider. C) Postpone. D) Contemplate. Show Answer Correct Answer: C) Postpone. 17. Formula used to compute the amount of a depository institutions required reserves A) Fee. B) State-chartered bank. C) Reserve requirement. D) None of above. Show Answer Correct Answer: C) Reserve requirement. 18. ..... was established as a premiere economic-based Islamic financial institution inspired with a realization to help provide investment services and opportunities while managing pilgrimage activities for the Malaysian Muslim community. A) EPF. B) SOCSO. C) KWSP. D) Tabung Haji. Show Answer Correct Answer: D) Tabung Haji. 19. Financial markets promote economic efficiency by A) Channeling funds from investors to savers. B) Creating inflation. C) Channeling funds from savers to investors. D) Reducing investment. Show Answer Correct Answer: C) Channeling funds from savers to investors. 20. What should you do before you use an ATM? A) Ask someone nearby for help using the ATM. B) Share your pin number with trusted friends so you don't forget it. C) Inspect the ATM and its surroundings to make sure it is safe to use. D) Memorize your debit card number because you'll need to type it in at the ATM. Show Answer Correct Answer: C) Inspect the ATM and its surroundings to make sure it is safe to use. ← 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