This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An account that allows quick access to funds for transactions A) Checking account. B) Savings tool. C) Savings account. D) Online banking. Show Answer Correct Answer: A) Checking account. 2. Which type of account should generally be used for ordinary purchases and monthly expenses? A) Traditional savings account. B) Certificate of deposit. C) Checking account. D) Money market account. Show Answer Correct Answer: C) Checking account. 3. Allows customers to complete certain transactions from a secured internet site by using a username and password from any place in the world with internet access A) Checking account. B) Online banking. C) Savings tool. D) Savings account. Show Answer Correct Answer: B) Online banking. 4. This type of money order is typically issues by travel agencies, supermarkets, pharmacies and convenience stores. A) Express money order. B) Telegraphic money order. C) Bank money order. D) Postal money order. Show Answer Correct Answer: A) Express money order. 5. Category 1 of merchant banker can act as: ..... A) All issue management functions. B) Underwriter. C) Consultant. D) None of above. Show Answer Correct Answer: A) All issue management functions. 6. An account at a depository institution that is designed to hold money not spent on current consumption A) Interest rate. B) ATM. C) Savings account. D) Interest. Show Answer Correct Answer: C) Savings account. 7. Which of the following is not a factor in modern banking? A) Mergers. B) Communication. C) Technology. D) Competition. Show Answer Correct Answer: B) Communication. 8. Under ....., the banking institutions are required to observe a minimum liquidity ratio. A) S 38(1) of the BAFIA 1989. B) S 37(1) of the BAFIA 1989. C) S 39(1) of the BAFIA 1989. D) S 40(1( of the BAFIA 1989. Show Answer Correct Answer: A) S 38(1) of the BAFIA 1989. 9. If you wanted to purchase shares of a company, whom would you contact? A) A stockbroker. B) A day trader. C) A commodities broker. D) The New York Stock Exchange. Show Answer Correct Answer: A) A stockbroker. 10. If you are estimating your total expenses for school next semester, you are using money primarily as: A) A unit of account. B) A store of value. C) A medium of exchange. D) An economic investment. Show Answer Correct Answer: A) A unit of account. 11. An endorsement that allows the owner of a check to transfer the right to cash the check to someone else. A) Blank. B) Comprehensive. C) Restricted. D) Special. Show Answer Correct Answer: D) Special. 12. A purchased certificate used to pay a specified amount to a particular payee. A) Certified checks. B) Money orders. C) Traveler's checks. D) Cashier's checks. Show Answer Correct Answer: B) Money orders. 13. When you put money into a checking account, you fill out a A) Deposit slip. B) Reconciliation form. C) Signature card. D) Bank statement. Show Answer Correct Answer: A) Deposit slip. 14. Financial institutions that accept deposits and make loans are called A) Exchanges. B) Banks. C) Over the counter Markets. D) None of above. Show Answer Correct Answer: B) Banks. 15. A ..... can provide legal proof of payment A) Cancelled check. B) Internet printout. C) Bank statement. D) Transaction register. Show Answer Correct Answer: A) Cancelled check. 16. What is one difference between the New York Stock Exchanve and the Nasdaq stock market? A) Nasdaq focuses on new-technology and technology stockd. B) Nasdaqs trading floor is in Chicago. C) The NYSE serves the over-the counter market. D) The NYSE is new and smaller. Show Answer Correct Answer: A) Nasdaq focuses on new-technology and technology stockd. 17. ..... provide services similar to a bank. The main difference is that a ..... only provides these services to its members A) Title loan. B) Pawn loan. C) Credit Union. D) None of above. Show Answer Correct Answer: C) Credit Union. 18. A ..... is a share of ownership in a company. A) Bond. B) Stock. C) Mutual fund. D) Money market account. Show Answer Correct Answer: B) Stock. 19. ..... do not take or hold deposits. They earn money selling specific services or policies. A) Deposit Institutions. B) Pawn Shops. C) Non-Deposit Institutions. D) Members. Show Answer Correct Answer: C) Non-Deposit Institutions. 20. When it comes to saving money, what is a good rule of thumb? A) Choose the savings account with the lowest interest rate. B) Keep most of your savings in your checking account. C) Put aside money for savings each month. D) Put anything you can't afford on your credit card. Show Answer Correct Answer: C) Put aside money for savings each month. 21. Bonus Question:What district does the Atlanta Federal Reserve Bank belong to? A) 8. B) 6. C) 5. D) 9. Show Answer Correct Answer: B) 6. 22. A sum of money borrowed for a certain amount of time is called a ..... A) Interest. B) Loan. C) Down payment. D) Borrow. Show Answer Correct Answer: B) Loan. 23. Which of the below statement is true with regard to Auditor of Banks? A) He should acquire knowledge of client's business. B) He should not have access to books of accounts of banks. C) He should do routine checking of all transactions. D) He cannot be a Limited Liability Partnership firm. Show Answer Correct Answer: A) He should acquire knowledge of client's business. 24. ..... is safe storage of funds for future use. A) Investment Advice. B) Loan Options. C) Savings Services. D) Payment Services. Show Answer Correct Answer: C) Savings Services. 25. Which bank Formulates the monetary policy? A) Bank of Baroda. B) State Bank of India. C) Reserve Bank of India. D) Canara Bank. Show Answer Correct Answer: C) Reserve Bank of India. 26. Delivery of financial services at affordable costs to the disadvantaged Low income segments of the society known as ..... A) B. Financial exclusion. B) D .Consumer credit. C) A. Credit creation. D) C. Financial Inclusion. Show Answer Correct Answer: D) C. Financial Inclusion. 27. Why do banks send customers a statement of their accounts every month? A) Reconcile the statement with their check registers. B) List all of the debits they have made with their debit cards. C) Verify their name and address on their account. D) Record all of the checks they have written. Show Answer Correct Answer: A) Reconcile the statement with their check registers. 28. Which type of account allows your deposited money to be withdrawn at any time by writing a check? A) Certified Cash Account. B) Savings Account. C) Certificate of Deposit. D) Checking Account. Show Answer Correct Answer: D) Checking Account. 29. What might happen if the government did not insure bank deposits? A) Banks would be robbed far more often. B) People would lose their savings if their banks went out of business. C) Banks would have to buy safe with extremely thick metal walls. D) Banks could no longer make loans to their customers. Show Answer Correct Answer: B) People would lose their savings if their banks went out of business. 30. Buying and selling of government securities by the central bank from/to banks is called? A) Open market operations. B) Margin. C) Banking. D) None of above. Show Answer Correct Answer: A) Open market operations. ← 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