This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Moving money from one account to another is called a ..... A) Glide. B) Swap. C) Transfer. D) Movement. Show Answer Correct Answer: C) Transfer. 2. What is the biggest factor that affects someone's credit? A) Age of accounts. B) Payment history. C) Amount of debt. D) Number of accounts. Show Answer Correct Answer: B) Payment history. 3. What is an OVERDRAFT FEE? A) A fee you pay to see Mr. French's three legged horse. B) A charge when more money is spent than what it is in the account. C) Moving a balance from one account to another. D) None of above. Show Answer Correct Answer: B) A charge when more money is spent than what it is in the account. 4. The mechanism a nation uses to provide and manage money for itself is called a(n) ..... A) Inventory system. B) Financial system. C) Banking system. D) Monetary system. Show Answer Correct Answer: D) Monetary system. 5. A person who gets in legal trouble for using checks unlawfully is committing: A) Bank Fraud. B) Loss of creditworthiness. C) Check Fraud. D) Robbery. Show Answer Correct Answer: C) Check Fraud. 6. A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit. A) Safe-deposit box. B) Credit union. C) Savings account. D) Credit card. Show Answer Correct Answer: D) Credit card. 7. A ..... is a short-term credit investment created by a non-financial firm and guaranteed by a bank to make payment. A) Certificate of deposit. B) Commercial paper. C) Bankers' acceptance. D) None of above. Show Answer Correct Answer: C) Bankers' acceptance. 8. When you put money into your checking account, you will fill out a A) Signature card. B) Check register. C) Deposit slip. D) Check stub. Show Answer Correct Answer: C) Deposit slip. 9. What is a check that appears on your bank statement called? A) Outstanding check. B) Cleared check. C) Bounced check. D) Good check. Show Answer Correct Answer: A) Outstanding check. 10. Income = ..... + Savings A) Wants. B) Expenses. C) Discretionary. D) Needs. Show Answer Correct Answer: B) Expenses. 11. The movement of money electronically from one financial institution to another. A) Automated teller machine. B) Electronic funds transfer. C) Fast cash. D) Electronic financial transitioning. Show Answer Correct Answer: B) Electronic funds transfer. 12. How does the taxpexempt status of municipal bonds benefit consumers throughout the US free enterprise system? A) It make people more likely to buy corporate bonds. B) It makes people more likely to buy municipal bonds. C) It increases the costs of projects like roads and bridges. D) It raises the amount of taxes that the federal government collects. Show Answer Correct Answer: B) It makes people more likely to buy municipal bonds. 13. Why does the United States Government issues savings bonds? A) To raise taxes. B) To improve its bond rating. C) To pay for government projects. D) To earn interest. Show Answer Correct Answer: C) To pay for government projects. 14. A bank statement shows A) All transactions from the statement period. B) The transactions that have cleared in the statement period. C) What your correct balance is. D) All of the checks you have written for the year. Show Answer Correct Answer: B) The transactions that have cleared in the statement period. 15. Which is the right of owner of hire purchase? i. To forfeit the depositii. To repossess the goodsiii. To claim damages for any loss sufferediv. All of above A) Iv. B) Ii. C) Iii. D) I. Show Answer Correct Answer: A) Iv. 16. Beyonce wanted to buy a hot tub and borrows $ 7, 400 from a bank with an interest rate of 10.5% SIMPLE interest. If she is able to pay it back in 1/4 of a year how much does she have to pay back total? A) $ 194.25. B) $ 26, 825.00. C) $ 7710.80. D) $ 7, 594.25. Show Answer Correct Answer: D) $ 7, 594.25. 17. Money you take out of your bank account A) Deposit slip. B) Withdrawal. C) Service charge. D) Deposit. Show Answer Correct Answer: B) Withdrawal. 18. A point is a value equal to ..... of a mortgage loan. A) 2 percent. B) 10 percent. C) 5 percent. D) 1 percent. Show Answer Correct Answer: D) 1 percent. 19. A box-usually located inside a bank-which is used to store valuables, is rented from the institution and can be accessed with keys, pin numbers or some other security pass. A) Savings account. B) Safe-deposit box. C) Stock. D) Bond. Show Answer Correct Answer: B) Safe-deposit box. 20. Are documents that function as cash but can be replaced if lost or stolen A) Money orders. B) Traveler's checks. C) Certified checks. D) Cashier's checks. Show Answer Correct Answer: B) Traveler's checks. 21. What is the prearranged agreement called that an individual can have with a bank totransfer funds from your savings account to your checking account if the checkingaccount does not have enough funds to pay an amount that is debited against yourchecking account A) Balance draft. B) Overdraft protection. C) Interest protection. D) Bad check insurance. Show Answer Correct Answer: B) Overdraft protection. 22. Services offered by Retail Banking include ..... A) Savings & Transactional accounts. B) Mortgages & personal loans. C) Debit cards & Credit cards. D) All of the above. E) None of the above. Show Answer Correct Answer: D) All of the above. 23. Lowest amount of money you must keep in your account A) Interest. B) Minimum balance. C) Savings account. D) Checking account. Show Answer Correct Answer: B) Minimum balance. 24. A machine that allows individuals to complete certain transactions from machine without human assistance A) Automated teller machine. B) Online banking. C) Savings tool. D) Commercial bank. Show Answer Correct Answer: A) Automated teller machine. 25. If you make a mistake writing a check you should A) Write VOID across the check and record it in your transaction register. B) Throw the check away in the trash and write a new one. C) Call the bank and have them cancel the check. D) Erase the errors and write it again. Show Answer Correct Answer: A) Write VOID across the check and record it in your transaction register. 26. ..... is not the duty of an auditor of a bank auditor A) To certify Statutory reports. B) To maintain books of accounts of banks. C) To maintain confidentiality. D) To help the investigator. Show Answer Correct Answer: B) To maintain books of accounts of banks. 27. ..... markets transfer funds from people who have an excess of available funds to people who have a shortage. A) Financial. B) Fund-available. C) Derivative exchange. D) Commodity. Show Answer Correct Answer: A) Financial. 28. When do you have to sign a deposit slip? A) When you deposit more than $ 10, 000. B) When you deposit any amount of cash. C) When you receive cash back. D) When you deposit more than $ 100. Show Answer Correct Answer: C) When you receive cash back. 29. A merchant bank can help an organization specifically in promotion functions A) Sponsoring the issue. B) Marketing. C) All of the above. D) None of above. Show Answer Correct Answer: C) All of the above. 30. What are the two types of accounts available at banks and credit unions? A) Checking and Savings. B) Checking and Loans. C) Savings and Loans. D) Debit and Credit. Show Answer Correct Answer: A) Checking and Savings. 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