This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 15 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A(n) ..... is an example of a nondepository financial institution. A) Commercial bank. B) Insurance company. C) Credit union. D) Mutual savings bank. Show Answer Correct Answer: B) Insurance company. 2. A non profit financial cooperative owned by and operated for the benefit of its members; services offered only to its members. A) Commercial Banks. B) Credit Union. C) Savings and Loans Associations. D) Federal Deposit Insurance Corporation. Show Answer Correct Answer: B) Credit Union. 3. Which of the following is generally true about financial intermediaries? A) Intermediaries are government agencies. B) Intermediaries channel money from investors to savers. C) Intermediaries increase the level of risk for investors. D) Intermediaries provide information to savers and investors. Show Answer Correct Answer: D) Intermediaries provide information to savers and investors. 4. What should you do before you withdraw money from the ATM? A) Inspect the ATM to make sure it wasn't tampered with. B) Find a hidden ATM so no one will see you withdraw money. C) Ask someone nearby for help using the ATM. D) Share your pin number with trusted friends so you don't forget it. Show Answer Correct Answer: A) Inspect the ATM to make sure it wasn't tampered with. 5. Which of the following is considered a liability for a bank? A) Deposits. B) Investments. C) Loans. D) Banks can't carry liabilities. Show Answer Correct Answer: A) Deposits. 6. The difference between interest paid and interest received A) Equity. B) Profit. C) Asset. D) Spread. Show Answer Correct Answer: D) Spread. 7. Which of the following is a non-deposit financial institution? A) Mutual savings bank. B) Credit union. C) Life insurance company. D) Savings and loan association. Show Answer Correct Answer: C) Life insurance company. 8. Why do some people invest in bonds with a low intrest rate? A) The investor may want an investment with a low credit rating. B) The investory may want to make a high yield. C) The investor may want a bond that matures in 20 years. D) The investor may want a low-risk investment. Show Answer Correct Answer: D) The investor may want a low-risk investment. 9. A Check Cashing Center provides service to someone who DOES NOT have a: A) ATM Card. B) Checking Account. C) Bank Account. D) Savings Account. Show Answer Correct Answer: C) Bank Account. 10. What means Wakalah? A) A contract of agency between the principle and the agent. B) A contract of benevolent loan between the lender and the borrower. C) A contract of remittance or transfer fund/debt between depositor and creditor. D) A contract of leasing between the owner of goods or asset. Show Answer Correct Answer: A) A contract of agency between the principle and the agent. 11. Credit unions are able to offer better interest rates because ..... A) Credit unions are not supervised and canmake their own rules. B) They are privately owned and run by a board of directors. C) They have an agreement with the U.S. Treasury Department. D) They are member owned and want to offer better services to their members. Show Answer Correct Answer: D) They are member owned and want to offer better services to their members. 12. Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called A) Fund-available markets. B) Commodity markets. C) Financial markets. D) Derivative exchange markets. Show Answer Correct Answer: C) Financial markets. 13. Financial advisors typically recommend an individual has enough savings to cover at least ..... months worth of bills. A) One to two. B) Three to six. C) 12 to 18. D) Six to eight. Show Answer Correct Answer: B) Three to six. 14. A person employed to deal with customers' transactions at a bank such as taking deposits or cashing checks. A) Cashier. B) Count. C) Penn. D) Teller. Show Answer Correct Answer: D) Teller. 15. Single people earning less than $ 50, 000 per year, will most likely use the A) 1040EZ Form. B) 1040 Form. C) 1040A Form. D) W-2 Form. Show Answer Correct Answer: A) 1040EZ Form. 16. Which type of account is easiest to access? A) Checking Account. B) Money market account. C) CD. D) Savings Account. Show Answer Correct Answer: A) Checking Account. 17. What's left of revenue after costs are deducted A) Equity. B) Profit. C) Asset. D) Spread. Show Answer Correct Answer: B) Profit. 18. In what type of market is money lent for periods longer than a year? A) Capital market. B) Primary market. C) Secondary market. D) Money market. Show Answer Correct Answer: A) Capital market. 19. Which of the following types of Financial Institutions has this unit mainly focused? A) Commercial Banks. B) Savings & Loans Associations. C) Brokerage Firms. D) Credit Unions. Show Answer Correct Answer: A) Commercial Banks. 20. Money is something I can trust to keep its value over time. A) Store of value. B) Unit of account. C) Medium of exchange. D) Unit of value. Show Answer Correct Answer: A) Store of value. 21. Which part of the check is the least important? A) Check number. B) Signature line. C) Routing numbers. D) Memo line. Show Answer Correct Answer: D) Memo line. 22. A wire transfer is ..... A) A financial transcation that electronically moves funds from one bank to another. B) Moving money from one account to another. C) Paying your bills online using your computer. D) The electronic connections used to access your account. Show Answer Correct Answer: A) A financial transcation that electronically moves funds from one bank to another. 23. Which of the following best describes a LOAN? A) Money borrowed that can be paid back if one feels like it. B) Money gifted to someone with no expectation of payback. C) Money borrowed. D) Money borrowed with the expectation of paying it back in a timely manner. Show Answer Correct Answer: D) Money borrowed with the expectation of paying it back in a timely manner. 24. The primary liabilities of a commercial bank are A) Bonds. B) Mortgages. C) Deposits. D) None of above. Show Answer Correct Answer: C) Deposits. 25. Fill in the blank.Lucy's employer doesn't giver her a pay cheque. Instead, her pay goes into her bank account. She uses ..... because it is convenient. A) Account balance. B) Minimum balance. C) NSF charge. D) Direct deposit. Show Answer Correct Answer: D) Direct deposit. 26. Savings account, checking and payment accounts, loans and other credit plans and other services such as safe-deposit boxes and investment advice are all examples of: A) Savings and Loan Companies. B) Government Agencies. C) Banking Services. D) Credit Unions. Show Answer Correct Answer: C) Banking Services. 27. Lets you borrow money from the bank but you have to pay back the loan in 20 to 30 days without being charged interest A) Credit cards. B) Loans. C) Banks. D) None of above. Show Answer Correct Answer: A) Credit cards. 28. If your checkbook is stolen A) Your name could be forged and used to purchase items without your consent. B) All the checks are automatically voided. C) It doesn't matter since the thief doesn't know how you sign your name. D) The thief can access all of your accounts. Show Answer Correct Answer: A) Your name could be forged and used to purchase items without your consent. 29. A common name for U.S. currency is ..... A) Orange backs. B) Blue backs. C) Green backs. D) Yellow backs. Show Answer Correct Answer: C) Green backs. 30. Interest helps allocate savings to its most productive use by A) Transferring money from borrowers to savers. B) Providing money for business improvements. C) Limiting risk. D) Directing households to save or invest. Show Answer Correct Answer: D) Directing households to save or invest. ← 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