This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 16 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Money on deposit, minus ....., can be loaned by banks to customers. A) Primary reserves. B) The reserve requirement. C) Cash on hand. D) Excess reserves. Show Answer Correct Answer: B) The reserve requirement. 2. One result of competition among banks is that A) The trend toward mergers in the banking industry has slowed. B) More banks banks exist now than a decade ago. C) More services are available to consumers. D) All of the answers. Show Answer Correct Answer: C) More services are available to consumers. 3. Anything that's accepted in exchange for goods & services. A) Currency. B) Deferred Payment. C) Money. D) Liquidity. Show Answer Correct Answer: C) Money. 4. A line of credit is: A) Is not readily available to the bank customer. B) A Master Card or Visa offered by a bank. C) A pool of available money that you can borrow. D) Must be backed by collateral. Show Answer Correct Answer: C) A pool of available money that you can borrow. 5. What is one difference between Banks and Credit Unions? A) Banks have Checking accounts and Credit Unions have Savings Accounts. B) Banks are for profit. Credit Unions are Non-profit. C) Banks can give loans and Credit Unions cannot. D) Credit Unions allow everyone to join and Banks are selective. Show Answer Correct Answer: B) Banks are for profit. Credit Unions are Non-profit. 6. The time and money spent in carrying out financial transactions are called: A) Liquidity Services. B) Transaction costs. C) Economies of scale. D) None of above. Show Answer Correct Answer: B) Transaction costs. 7. A computer based system that moves money from one account to another. Direct deposit, having a bill draft from your checking account, and moving money from savings to checking are all examples. A) Electronic Funds Transfer. B) Gringotts Bank. C) Bank of Mom and Dad. D) NSF Services. Show Answer Correct Answer: A) Electronic Funds Transfer. 8. What kinds of financial assets are sold on secondary markets A) Stocks. B) Small certificates of deposit. C) Savings bonds. D) Capital markets. Show Answer Correct Answer: A) Stocks. 9. Usin the Rule of 72, how long would it take for money to double at an 8 percent interest rate? A) 72 years. B) 9 years. C) 8 years. D) 18 years. Show Answer Correct Answer: B) 9 years. 10. When depositing money into an account, it is important to: A) Sign your deposit ticket. B) Thank the teller. C) Swipe your credit card. D) Include your account number. Show Answer Correct Answer: D) Include your account number. 11. A license authorizing a bank to operate usually called national banks. A) Certificate. B) FDIC. C) Savings and Loans association. D) Charter. Show Answer Correct Answer: D) Charter. 12. What agencies insure banks and credit unions? A) IRS and DHS. B) DHS and FDIC. C) FDIC and NCUA. D) NCUA and FICA. Show Answer Correct Answer: C) FDIC and NCUA. 13. Using the rule of 72, how long would it take for your money to double at a 4 percent interest rate? A) 36 years. B) 4 years. C) 18 years. D) 9 years. Show Answer Correct Answer: C) 18 years. 14. ..... service is offered by the merchant banker to get term loan for project, help client make appraisal, designing capital structure etc A) Underwriting. B) Loan Syndication. C) Issue Management. D) None of above. Show Answer Correct Answer: B) Loan Syndication. 15. To bring the bank statement and your own record of transaction into agreement A) Check for errors. B) Review. C) Balance. D) Reconcile. Show Answer Correct Answer: D) Reconcile. 16. It is a computerised database system developed and maintained by BNM to collect, process, store, and generate information.What is this? A) Block Discounting. B) Dishonoured Cheque Information System. C) Central Credit Reference Information System. D) Credit Tip Off System. Show Answer Correct Answer: B) Dishonoured Cheque Information System. 17. Plastic card that allows the holder to make credit purchases up to an authorized amount. A) Government bond. B) Debit card. C) Credit card. D) Line of credit. Show Answer Correct Answer: C) Credit card. 18. This institution requires you to be a member A) Banks. B) Credit Unions. C) Savings and Loans. D) Payday Loan Company. Show Answer Correct Answer: B) Credit Unions. 19. The National Credit Union Administration (NCUA) regulates which depository institution? A) Credit Unions. B) Mutual Savings Banks. C) Savings and Loan Association. D) Commercial Banks. Show Answer Correct Answer: A) Credit Unions. 20. Prearranged amount of credit that is available for a business to use as needed. A) Government bond. B) Medium of exchange. C) Line of credit. D) Checking account. Show Answer Correct Answer: C) Line of credit. 21. An 8th grader makes and sells earrings as a way to earn extra money. The money she gets is considered ..... A) Income. B) Expenses. C) Wants. D) Needs. Show Answer Correct Answer: A) Income. 22. Which of the following is a written order from you to your bank instructing your bank to pay money from your account to another party? A) A deposit slip. B) A certificate of deposit. C) A debit card. D) A check. Show Answer Correct Answer: D) A check. 23. Approximately how often does a financial institution send a bank statement to an account holder? A) Yearly. B) Quarterly. C) Monthly. D) Weekly. Show Answer Correct Answer: C) Monthly. 24. Amelia receives a card from her financial institution that allows to her use an ATM for depositing and withdrawing money, checking her account information, and more. Amelia has a what? A) Debit Card. B) ATM Card. C) Credit Card. D) Cash Card. E) Savings Account. Show Answer Correct Answer: B) ATM Card. 25. The amount of money in an account can be defined as: A) Account Amount. B) Money Level. C) Account Balance. D) Your Dough. Show Answer Correct Answer: C) Account Balance. 26. Which of the following is a job of the Federal Reserve? A) Insure the safety of deposits. B) Regulate inflation so it doesn't get out of control. C) Acts as the Governments Bank. D) All of the above. Show Answer Correct Answer: D) All of the above. 27. If your bank statement and personal transaction register do no match, you should do all of the following EXCEPT ..... A) Erase your balance and put in the bank statement amount since that is correct. B) Check to be sure that you didn't miss anything. C) Double check your math. D) Take your records to the bank for assistance. Show Answer Correct Answer: A) Erase your balance and put in the bank statement amount since that is correct. 28. Brooke is smart, financially stable, and is looking for a loan that offers a low interest rate and not much risk. Where should she apply for a loan at? A) Title Pawn. B) Payday Lender. C) Credit Union. D) Bank. Show Answer Correct Answer: C) Credit Union. 29. How can you avoid spending more than what is in your bank account? A) Check your bank statement once a month. B) Ask your financial institution to notify you when you are close to $ 0 in your account. C) Keep your own records to compare with your financial institution's records. D) None of the above. Show Answer Correct Answer: C) Keep your own records to compare with your financial institution's records. 30. Which financial institution is insured by NCUA? A) Commercial banks. B) Credit unions. C) Savings and loans. D) None of above. Show Answer Correct Answer: B) Credit unions. ← 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