This quiz works best with JavaScript enabled. Home > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A sum paid or charged for the use of money or for borrowing money A) Interest. B) Credit cards. C) Funds. D) None of above. Show Answer Correct Answer: A) Interest. 2. A merchant accepts debit cards to pay for purchases with A) Point-of-sale transactions. B) Direct deposits. C) Automatic bill payment. D) ATM transactions. Show Answer Correct Answer: A) Point-of-sale transactions. 3. Which type of check endorsement begins with "For deposit only to account No. 123456 ..... "? A) Blank. B) Special/full. C) Transfer. D) Restrictive. Show Answer Correct Answer: D) Restrictive. 4. When did RBI nationalise? A) 1949. B) 1947. C) 1948. D) 1952. Show Answer Correct Answer: A) 1949. 5. "Form A" of Third Schedule of Banking Regulation Act, 1949 deals with preparation of ..... of financial statements of Banks. A) Balance Sheet. B) Profit & Loss Account. C) Revenue Account. D) Appointment of auditor. Show Answer Correct Answer: A) Balance Sheet. 6. Savings accounts typically offer more interest than what type of account? A) Retirement account. B) Money market account. C) Checking account. D) Certificate of deposit. Show Answer Correct Answer: C) Checking account. 7. How do banks make money? A) Loaning out money and charging interest. B) Paying interest to depositors. C) Providing public goods. D) Selling resources. Show Answer Correct Answer: A) Loaning out money and charging interest. 8. The Federal Reserve Bank is managed by a ..... A) Board of Bankers. B) Board of Managers. C) Board of Governors. D) Board with a chairman. Show Answer Correct Answer: C) Board of Governors. 9. An example for nationalized bank is ..... A) State bank of India. B) Rural bank. C) Option A and B. D) None of the above. Show Answer Correct Answer: A) State bank of India. 10. Direct deposit, automated transfer, automated loan payments, and automated bill pay are all examples of A) Automated services you can request from your financial institution. B) Bad financial practices as you could become a victim of fraud. C) Something that may become available in the future. D) Services that you can be charged for at your financial institution. Show Answer Correct Answer: A) Automated services you can request from your financial institution. 11. The financial intermediaries that the average person interacts with most frequently are A) Exchanges. B) Over-the-counter markets. C) Finance companies. D) Banks. Show Answer Correct Answer: D) Banks. 12. Which one of the following is a title typically held by a bank officer? A) Bookkeeper. B) Controller. C) Marketing coordinator. D) Job analyst. Show Answer Correct Answer: B) Controller. 13. Payment made for the use of borrowed money is called A) Financial Institution. B) Creditors. C) Interest. D) Secured. Show Answer Correct Answer: C) Interest. 14. What agency regulates banks and financial institutions and insures each depositor's accounts up to $ 250, 000? A) State Farm. B) Internal Revenue Service. C) Individual Banks. D) Federal Deposit Insurance Corporation. Show Answer Correct Answer: D) Federal Deposit Insurance Corporation. 15. Emilio borrows $ 1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years? A) $ 150. B) $ 192. C) $ 1350. D) $ 1392. Show Answer Correct Answer: D) $ 1392. 16. In a trust account, the ..... is the person who establishes the account and paysfunds into the account and the ..... is the person who receives the funds uponthe passing of the person or when they have met the required age. A) Benefactor; trustee. B) Trustee; beneficiary. C) Beneficiary; trustee. D) Trustee; benefactor. Show Answer Correct Answer: B) Trustee; beneficiary. 17. A check that is issued and guaranteed by a bank A) Certified checks. B) Cashier's checks. C) Money orders. D) Traveler's checks. Show Answer Correct Answer: B) Cashier's checks. 18. Typical e-banking services allow customers to do all of the following EXCPET A) Obtain cash. B) Transfer funds from savings to checking. C) Print new checks. D) Pay bills online. Show Answer Correct Answer: A) Obtain cash. 19. A check that is drawn by a bank on its own funds and signed by an authorized officer of the bank is a: A) Cashiers Check. B) Collateralized Check. C) Certified Check. D) Certificate of Deposit. Show Answer Correct Answer: A) Cashiers Check. 20. What is one advantage of a money market mutual fund as compared with a savings account? A) It has more risk. B) It has lower interest. C) It has higher interest. D) It is insured by the FDIC. Show Answer Correct Answer: C) It has higher interest. ← 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 8Banking And Financial Institutions Quiz 9Banking And Financial Institutions Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books