This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Direct deposit typically refers to your ..... sending your ..... electronically to your bank account. A) Employer, bills. B) Parents, allowance. C) Employer, paycheck. D) State government, taxes. Show Answer Correct Answer: C) Employer, paycheck. 2. Where do Banks get the money they use to loan out to others? A) The Government. B) The Federal Reserve. C) Other Banks. D) The Savings of Depositers. Show Answer Correct Answer: D) The Savings of Depositers. 3. A request made to a financial institution to cancel a check or payment that has not yet been processed A) Stop Payment. B) Start Payment. C) Stop Processing. D) Standby Payment. Show Answer Correct Answer: A) Stop Payment. 4. A mutual fund A) Pools the savings of many individuals and invests it in a variety of financial assets. B) Collects premiums from the people who buy insurance and lends out a portion to investors. C) Uses risky strategies that often makes huge profits for wealthy investors. D) Invests employee retirement money in stocks, bonds and other financial assets. Show Answer Correct Answer: A) Pools the savings of many individuals and invests it in a variety of financial assets. 5. Stages of a loan cycle.i. credit analysis-loan administration-marketing-loan recoveryii. marketing-credit analysis-loan administration-loan recoveryiii. credit analysis-marketing-loan administration-loan recoveryiv. credit analysis-loan administration-loan recovery-marketing A) I. B) Ii. C) Iii. D) Iv. Show Answer Correct Answer: B) Ii. 6. Which of the following transactions may be missing when you go online to review your checking account balance? A) ATM cash withdrawal from yesterday. B) Automatic payment for your car loan paid two days ago. C) Debit card transaction from purchasing snacks at a local convenience store today. D) Check that you mailed to your cousin for his birthday today. Show Answer Correct Answer: D) Check that you mailed to your cousin for his birthday today. 7. Which of the following concept is used for islamic banking? A) Al Mudharabah (profit-sharing). B) Al Murabahah (cost plus). C) Al Hiwalah (remittance). D) All of above. Show Answer Correct Answer: D) All of above. 8. Banks have customers sign a signature card when opening a checking account tohelp protect against: A) Counterfeiting. B) Phishing. C) Forgery. D) Overdraft. Show Answer Correct Answer: C) Forgery. 9. Liam wants cash from his bank, but it is closed, He will use the ATM. A) Credit card. B) Debit card. C) Savings account. D) None of above. Show Answer Correct Answer: B) Debit card. 10. Which non-deposit institution is used by people who do not have bank accounts to cash paycheck? They also do electronic tax filing, money orders, utility bill payments. A) Mortgage Companies. B) Check Cashing Outlets. C) Pawnshops. D) Investment Companies. Show Answer Correct Answer: B) Check Cashing Outlets. 11. A For Profit Depository Institution. May be privately owned or publicly traded. Anyone can open account, no membership required. Generally lower savings rates and higher fees A) Bank. B) Credit Union. C) Payday Lender. D) Check Cashing Company. Show Answer Correct Answer: A) Bank. 12. The tools and strategies the Federal Reserve uses to stabilize the economy is called? A) Fiscal Policy. B) Monetary Policy. C) Tight Money. D) Easy Money. Show Answer Correct Answer: B) Monetary Policy. 13. Individuals who you financially support in your household are: A) Dependents. B) Heirs. C) Tax shelters. D) Exemptions. Show Answer Correct Answer: A) Dependents. 14. What is the number of electoral votes for each state based on? A) Population. B) Congressional Representation. C) Number of registered voters in the state. D) How long that state has been part of the United States. Show Answer Correct Answer: B) Congressional Representation. 15. If a company is already in liquidity crunch and flotation costs of the issue would be high. What kind of instrument will be appoints for the money market. A) Treasury Bill. B) Commercial Paper. C) COD. D) Commercial Bills. Show Answer Correct Answer: B) Commercial Paper. 16. What does a Checking Account Number identify? A) A particular check. B) The primary identifier for ownership of an account. C) What bank the account is with. D) What date the check was written. Show Answer Correct Answer: B) The primary identifier for ownership of an account. 17. Stock prices are A) Relatively stable trending upward at a steady pace. B) Relatively stable trending downward at a moderate rate. C) Extremely volatile (suddenly changed in a short period of time). D) Unstable trending downward at a moderate rate. Show Answer Correct Answer: C) Extremely volatile (suddenly changed in a short period of time). 18. What is a disadvantage of using a debit card? A) You could forget to put the transaction in your register and have an inaccurate balance. B) If someone steals your card they could steal all of your money. C) You could go into debt by purchasing more than you can afford. D) There are no disadvantages. Show Answer Correct Answer: A) You could forget to put the transaction in your register and have an inaccurate balance. 19. A prospectus tells you A) If you have a liquid investment. B) How well your investment is performing. C) Whether or not you need a financial intermediary. D) If you need a hedge fund. Show Answer Correct Answer: B) How well your investment is performing. 20. As a property of money, ..... means that money must maintain its value over time in order to be widely accepted. A) Stable. B) Portable. C) Durable. D) Recognized. Show Answer Correct Answer: A) Stable. ← PreviousNext →Related QuizzesBanking QuizzesBanking And Financial Institutions Quiz 1Banking And Financial Institutions Quiz 2Banking And Financial Institutions Quiz 3Banking 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