This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 38 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 38 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Four types of Depository Institutions are Commercial Bank, Mutual Savings Bank, Credit Unions and A) Pawn Shops. B) Federal Reserve. C) Savings and Loan Association. D) Life Insurance Agencies. Show Answer Correct Answer: C) Savings and Loan Association. 2. What relationship does risk have to return? A) With lower risk, the potential for a return disappears. B) The higher the risk, the lower the potential for return. C) The lower the risk, the greater the potential for return. D) The higher the risk, the greater the potential for return. Show Answer Correct Answer: D) The higher the risk, the greater the potential for return. 3. Money placed into an account. A) Deposit. B) Finance company. C) Investment bank. D) Line of credit. Show Answer Correct Answer: A) Deposit. 4. Money subtracted from an account A) Withdrawal. B) Deposit. C) Transfer. D) Balance. Show Answer Correct Answer: A) Withdrawal. 5. The standard insurance amount provided by the FDIC is ..... per depositor, per insured bank, for each account ownership category. A) $ 100, 000. B) $ 250, 000. C) $ 500, 000. D) $ 1, 000, 000. Show Answer Correct Answer: B) $ 250, 000. 6. What is the name of our nation's central bank? A) The Federal Reserve. B) The United States National Bank. C) The National Bank of the United States. D) Bank of America. Show Answer Correct Answer: A) The Federal Reserve. 7. In a point-of ..... transaction, a merchant accepts a debit card to pay for purchases. A) Service. B) Stop. C) Sale. D) Reserve. Show Answer Correct Answer: C) Sale. 8. ..... covers the entire range of services provided by a merchant banker. A) Cooperate counselling. B) Project counselling. C) Credit syndication. D) None of above. Show Answer Correct Answer: A) Cooperate counselling. 9. Why is it important to reconcile your bank statements? A) To avoid spending more than what is in your account. B) To detect any errors in your account. C) To determine if you were charged any fees. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. Refers to the use of a smartphone or other cellular device to perform online banking tasks while away from your home computer, such as monitoring account balances, transferring funds between accounts, bill payment and locating an ATM A) Mobile Banking. B) Brick and Mortar Banking. C) Traditional Banking. D) Wire Fraud. Show Answer Correct Answer: A) Mobile Banking. 11. What institution clears checks for member banks? A) Federal Reserve. B) White House. C) US Banks. D) Credit Unions. Show Answer Correct Answer: A) Federal Reserve. 12. Which financial institution offer loans such as mortgages and auto loans? A) Commercial banks. B) Credit unions. C) Savings and loans. D) All of them. Show Answer Correct Answer: D) All of them. 13. When you don't have enough money in your checking account to pay for a check, the check will: A) Drop. B) Bounce. C) Rip. D) Fail. Show Answer Correct Answer: B) Bounce. 14. The main purpose of the Federal Reserve System is to A) Collect tax revenue for state and local governements. B) Supervise and regulate member banks. C) Protect depositors' money in case of bank failure. D) Inform consumers of wise investments choices. Show Answer Correct Answer: B) Supervise and regulate member banks. 15. These institutions do not receive deposits but provide other financial services for a fee. A) Non depository institutions. B) Depository institutions. C) Credit unions. D) Clearing houses. Show Answer Correct Answer: A) Non depository institutions. 16. The bond markets are important because they are A) Easily the most widely followed financial markets in the United States. B) The markets where foreign exchange rates are determined. C) The markets where interest rates are determined. D) The markets where all borrowers get their funds. Show Answer Correct Answer: C) The markets where interest rates are determined. 17. You can deduct money from your bank account to make a purchase by use of a A) Debit card. B) Credit card. C) Charge card. D) Prepaid card. Show Answer Correct Answer: A) Debit card. 18. A ..... that pools money from many investors and invests in well diversified portfolio of sound investment. A) Mutual fund. B) Venture capital. C) Commercial Banks. D) Insurance companies. Show Answer Correct Answer: A) Mutual fund. 19. The market value of all share or equity issued by a company is called it's ..... A) Money for Investment. B) Return on Capital. C) Total Equity. D) Market Capitalisation. Show Answer Correct Answer: D) Market Capitalisation. 20. Which is NOT a factor to consider when shopping for a bank? A) Minimum balances requirements. B) Interest Rates and Fees. C) Celebrity Endorsement. D) ATM availability. Show Answer Correct Answer: C) Celebrity Endorsement. ← 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