This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Many famous people don't spend their money wisely and end up in ..... A) Bankruptcy. B) Interest. C) Inflation. D) Withdraw. Show Answer Correct Answer: A) Bankruptcy. 2. Experts recommend that you accumulate enough to cover 3 to 6 ..... of expenses in your emergency fund A) Years. B) Days. C) Months. D) Weeks. Show Answer Correct Answer: C) Months. 3. Looking at your checkbook register & banks statement to make sure the bank's records match your own. If they don't this process also involves finding out exactly why. A) Bank Fraud. B) Online Banking. C) Balancing Your Checkbook / Reconciling Your Bank Statement. D) Being Extra. Show Answer Correct Answer: C) Balancing Your Checkbook / Reconciling Your Bank Statement. 4. The most common type of bank accounts A) CD's and DDA's. B) Mutual Funds. C) Money market accounts. D) Savings & Checking accounts. Show Answer Correct Answer: D) Savings & Checking accounts. 5. The delivery of financial services electronically is called: A) E-Business. B) E-Finance. C) E-Commerce. D) None of above. Show Answer Correct Answer: B) E-Finance. 6. Money function as: A) A store of value. B) A unit of account. C) A medium of exchange. D) All of these. Show Answer Correct Answer: D) All of these. 7. All of the following are improper check-writing procedures EXCEPT A) Overdraw your account whenever possible. B) Avoid making checks payable to "cash". C) Write your checks in pencil. D) Postdate all of your checks. Show Answer Correct Answer: B) Avoid making checks payable to "cash". 8. You invested your allowance of $ 270 which gets .15% compounded annually for 3 years in a savings account. How much will you have in 3 years? A) $ 270.01. B) $ 282.33. C) $ 410.64. D) $ 271.22. Show Answer Correct Answer: D) $ 271.22. 9. Money market deposit accounts are included in: A) M 1 only. B) M 2 only. C) Neither M1 nor M2. D) Both M1 and M2. Show Answer Correct Answer: B) M 2 only. 10. The process of transferring money from one individual or organization to another is ..... A) Financial exchange. B) Medium of exchange. C) Monetary policy. D) Financial services. Show Answer Correct Answer: A) Financial exchange. 11. The type of account where we put them money for fixed time? A) Current account. B) Recurring deposit account. C) Savings Account. D) Fixed deposit account. Show Answer Correct Answer: D) Fixed deposit account. 12. What is "interest" ? A) Direct deposit. B) Specialized savings. C) Rate earned, compounding method, fee charged. D) None of above. Show Answer Correct Answer: C) Rate earned, compounding method, fee charged. 13. Examples of non-banking financial intermediaries A) Insurance companies. B) Investment banks. C) Tabung Haji. D) Pusat Zakat. Show Answer Correct Answer: B) Investment banks. 14. Which is not a factor you would consider when looking for a Bank or Credit union? A) Free Checking. B) Location. C) Looks. D) Services. Show Answer Correct Answer: C) Looks. 15. Banks create money by taking in deposits, giving out ....., and charging ..... A) Interest, payments. B) Loans, interest. C) Payments, loans. D) Debt, loans. Show Answer Correct Answer: B) Loans, interest. 16. Safe easy way to pay bills without having to carry cash A) Minimum balance. B) Checking account. C) Interest. D) Savings account. Show Answer Correct Answer: B) Checking account. 17. Which of the followings are not considered as regulatory bodies and policy makers? A) Ministry of Finance. B) Government agencies. C) Commercial banks. D) Bank Negara Malaysia. Show Answer Correct Answer: C) Commercial banks. 18. When you evaluate an investment, you must balance A) The risks involved with the rewards you expect to gain. B) The interest you will ear with the prospectus you will gain. C) The liquidity involved with the risk you take. D) The diversification you are making with the type of financial intermediary. Show Answer Correct Answer: A) The risks involved with the rewards you expect to gain. 19. Which type of bank account typically offers no interest? A) Certificate of Deposit (CD). B) Savings Account. C) Money Market Account. D) Checking Account. Show Answer Correct Answer: D) Checking Account. 20. A check that a bank draws on its own funds is called a A) Cashier's check. B) Traveler's check. C) Certified check. D) Money order. Show Answer Correct Answer: A) Cashier's check. 21. Why do we pay taxes in our country? A) To make our Government rich. B) To provide for Public Goods and Services. C) To provide for Goods and Services. D) None of above. Show Answer Correct Answer: B) To provide for Public Goods and Services. 22. The concept that money available at the present time is worth more than the identical sum in the future. This core principle of finance holds that provided money can earn interest, any amount of money is worth more the sooner it is received A) Time Variance of Money. B) Safety Deposit Box. C) Time Value of Money. D) The Lottery. Show Answer Correct Answer: C) Time Value of Money. 23. Which one of the following is not a typical duty of a bank teller? A) Balance the cash drawer daily. B) Prepare currency and coin for retail customers. C) Sell savings bonds. D) Manage large sums of money placed in trust with the bank according to clients'wishes. Show Answer Correct Answer: D) Manage large sums of money placed in trust with the bank according to clients'wishes. 24. The Federal Reserve ..... A) Regulates the amount of money. B) Supervises Banks. C) Provides Financial Services. D) All of the above. Show Answer Correct Answer: D) All of the above. 25. The Fed influences the money supply and interest rates in the economy to keep this low and stable- A) Price. B) Interest. C) Inflation. D) Supply. Show Answer Correct Answer: C) Inflation. 26. A service you can buy where the bank keeps your valuables safe is A) Vault. B) Safety chamber. C) Box of safety. D) Safe deposit box. Show Answer Correct Answer: D) Safe deposit box. 27. The provisions for presentation of financial Statements of banks are given under ..... Section of Banking Regulation Act, 1949. A) 31. B) 29. C) 50. D) 18. Show Answer Correct Answer: B) 29. 28. Currency in circulation is part of: A) M 1 only. B) M 2 not including M1. C) Neither M1 nor M2. D) Both M1 and M2. Show Answer Correct Answer: D) Both M1 and M2. 29. When the Fed makes more money available, interest rates tend to ..... A) Return to normal. B) Go down. C) Level off. D) Go up. Show Answer Correct Answer: B) Go down. 30. How are the Dow Jones Industrial and the S & P 500 similar? A) Both report the daily change in price of all stocks. B) Both rose in value during the 2007-009 bear market. C) Both measure how well hunderds of stocks are doing. D) Both track the performance of the stock market. Show Answer Correct Answer: D) Both track the performance of the stock market. ← PreviousNext →Related QuizzesBanking QuizzesFinance 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 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books