This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 12 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following actions would help you lower the risks of investing? A) Invest more money. B) Invest less money. C) Invest directly in businesses and avoid financial intermediaries. D) Diversify your investments. Show Answer Correct Answer: D) Diversify your investments. 2. There are the derivatives market except.. A) Commodity Futures. B) Unit Trust. C) KLIBOR Futures. D) KLSE CI Futures. Show Answer Correct Answer: B) Unit Trust. 3. When you have taken out more money than you have in your bank account. A) Overdrawn. B) Statement. C) Debit card. D) Endorse. Show Answer Correct Answer: A) Overdrawn. 4. A card sold in specified dollar amounts that can be used to purchase products or services A) Check cards. B) Credit cards. C) Debit cards. D) Prepaid cards. Show Answer Correct Answer: D) Prepaid cards. 5. How do banks earn their money? A) High initial bank account opening fees. B) Allocating customers' money for daily expenses and company's money for quarterly bills. C) Lending money at higher interest rates than what they are paying out for savings accounts. D) Circulating printed money into the economy and keeping a percentage for daily operations. Show Answer Correct Answer: C) Lending money at higher interest rates than what they are paying out for savings accounts. 6. When using your debit card for a purchase it is safest to run it as A) Credit and signing it. B) Debit and entering your PIN. C) Its never safe. D) Charge and signing it. Show Answer Correct Answer: A) Credit and signing it. 7. Financial institution that is involved in the trading of securities in the financial market. A) Finance company. B) Credit Union. C) Securities firm. D) Commercial bank. Show Answer Correct Answer: C) Securities firm. 8. IFSC Code stands for ..... A) Indian Foreign Service code. B) Indian Full Service carrier. C) Instant Free space credit. D) Indian Financial system code. E) None of these. Show Answer Correct Answer: D) Indian Financial system code. 9. A ..... enables you to withdraw cash from your account at ATMs or to pay directly for goods or services at many businesses. A) Debit card. B) Credit card. C) NOW card. D) Check register. Show Answer Correct Answer: A) Debit card. 10. Which deposit institution provides savings accounts, make loans to individuals and businesses and offer other services? A) Credit Unions. B) Mutual Savings Banks. C) Savings and Loan Association. D) Commercial Bank. Show Answer Correct Answer: D) Commercial Bank. 11. Which of the following cannot be covered by insurance? A) Car accident. B) Power outage. C) Lost items. D) Fire damage. Show Answer Correct Answer: C) Lost items. 12. Fill in the blanks.Hani can withdraw, deposit, transfer or pay bills, etc. as many times as he needs. His bank gives him ..... A) NSF charge. B) Unlimited transactions. C) Overdraft protection. D) Fee waiver. Show Answer Correct Answer: B) Unlimited transactions. 13. Type of check endorsement that is "for deposit only" A) Blank Endorsement. B) Restrictive Endorsement. C) Special Endorsement. D) None of above. Show Answer Correct Answer: B) Restrictive Endorsement. 14. If you make an error on a check, what should you do? A) Void the check and write a new one. B) Make corrections and initial the change. C) Use whiteout to fix the error. D) Throw the check away and write a new one. Show Answer Correct Answer: A) Void the check and write a new one. 15. What is a financial statement owned by its members called? A) Credit union. B) Bank. C) Depository. D) Money place. Show Answer Correct Answer: A) Credit union. 16. Is a payment card that deducts money directly from a consumer's checking account to pay for a purchase. cards eliminate the need to carry cash or physical checks to make purchases. BUY NOW, PAY NOW. A) Credit Card. B) Prepaid Card. C) Debit Card. D) ATM Card. Show Answer Correct Answer: C) Debit Card. 17. Functions of banks A) Discounting of bills. B) Hiring safe deposit lockers. C) Conducting foreign exchange transactions. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. Suppose over the next 10 years the prices of the things you buy double. If your income ALSO doubles, how much will you be able to buy in 10 years? A) Less. B) The same. C) More. D) None of above. Show Answer Correct Answer: B) The same. 19. The Services of banks are called ..... A) Saving account. B) Banking. C) Current account. D) All of the above. Show Answer Correct Answer: B) Banking. 20. A ..... is type of financial investment issued by a corporation, government, or other organization. A) Banknote. B) Loan. C) Financial exchange. D) Security. Show Answer Correct Answer: D) Security. 21. A strategy for using money to reach important goals and to advance your financial security A) Savings plan. B) Interest plan. C) Budget. D) None of above. Show Answer Correct Answer: A) Savings plan. 22. What do we call the amount left over from your paycheck after taxes and deductions? A) Gross balance. B) Transaction. C) Balance. D) Net pay. Show Answer Correct Answer: D) Net pay. 23. Will needs a better way travel to and from work. What type of loan does he need? A) Business. B) Auto. C) Mortgage. D) Home equity. Show Answer Correct Answer: B) Auto. 24. You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money? A) Compouding daily. B) Compounding monthly. C) Compounding quarterly. D) Compounding 1 time per year. Show Answer Correct Answer: A) Compouding daily. 25. Everything else held constant, an increase in interest rates on student loans A) Increases costs for students with no loans. B) Reduces the cost of a college education. C) Increases the cost of a college education. D) Has no effect on educational costs. Show Answer Correct Answer: C) Increases the cost of a college education. 26. What can affect whether banks or other financial institutions are interested in offering an individual a loan? A) Personal credit. B) Business credit. C) Financial experience. D) Financial knowledge. Show Answer Correct Answer: A) Personal credit. 27. This is a bank check you can order in case someone doesn't accept personal checks. A) Cross Check. B) Certified Check. C) Coat Check. D) Cashier's Check. Show Answer Correct Answer: D) Cashier's Check. 28. Governments can raise money to finance public spending through the sale of ..... A) James. B) Shares. C) Stocks. D) Bonds. Show Answer Correct Answer: D) Bonds. 29. Patrick has bought one too many video games and has not paid his speeding ticket, which has to be paid TODAY. He needs money fast and he can pay it back when he gets paid Friday. Which one will he most likely choose? A) Bank. B) Title Pawn. C) Payday Loan. D) Credit Union. Show Answer Correct Answer: C) Payday Loan. 30. If you write a check for $ 100 but you only have $ 50 in your account ..... A) No one will care until the check comes to the bank. B) You have just overdrafted your account. C) You need to make a deposit before the check comes to the bank. D) All of the above. Show Answer Correct Answer: D) All of the above. ← 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