This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 17 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is not an example of a stored-value card? A) Gift card. B) Credit card. C) Subway smart card. D) Phone card. Show Answer Correct Answer: B) Credit card. 2. Approximately how often does a financial institution send a bank statement through the mail? A) Monthly. B) Weekly. C) Quarterly. D) Yearly. Show Answer Correct Answer: A) Monthly. 3. What are smart cards? A) Debit or credit cards with a microchip. B) Debit cards you can not steal. C) Credit cards. D) None of above. Show Answer Correct Answer: A) Debit or credit cards with a microchip. 4. Sets out the regulatory framework for Malaysia's Islamic financial sector A) Islamic Financial Service Act 2012. B) Islamic Financial Service Act 2011. C) Islamic Financial Service Act 2010. D) Islamic Financial Service Act 2013. Show Answer Correct Answer: D) Islamic Financial Service Act 2013. 5. Form of business organization recognized by law as a separate legal entity with all rights and responsibilities of an individual, including the right to buy and sell legal property, Enter into legal contracts, sue and be sued A) Shareholder. B) Corporation. C) Stock. D) None of above. Show Answer Correct Answer: B) Corporation. 6. A certificate, usually issued by a government or banking institution, that allows the stated payee to receive cash on demand. Functions in a similar way to a cashier's check but available for purchase at more locations (post office, gas station, etc). Be careful, they are at high risk for fraud! A) Cash on Demand. B) Money Order. C) IOU. D) Promissory Note. Show Answer Correct Answer: B) Money Order. 7. In defining money as M1, economists exclude time deposits because: A) The intrinsic value of time deposits is nil. B) The purchasing power of time deposits is much less stable than that of checkable deposits and currency. C) They are not directly or immediately a medium of exchange. D) . they are not recognized by the Federal government as legal tender. Show Answer Correct Answer: C) They are not directly or immediately a medium of exchange. 8. A(n) ..... check is a check that is dated later than the date on which it is actually written. A) Bounced. B) Bank. C) Postdated. D) Returned. Show Answer Correct Answer: C) Postdated. 9. Involves guiding people on the best ways to manage, invest or use their money A) Loan. B) FDIC. C) Financial counseling. D) Depository institution. Show Answer Correct Answer: C) Financial counseling. 10. A bank can sell only those NPA's which remained NPA for more than ..... year/years A) 3. B) 5. C) 4. D) 2. Show Answer Correct Answer: D) 2. 11. What type of check has been written but not yet returned to the bank for payment? A) Cleared. B) Stale. C) Forged. D) Outstanding. Show Answer Correct Answer: D) Outstanding. 12. When you borrow money from a bank, where does that money come from? A) The accounts of the bank's customers. B) The federal government. C) A credit card company. D) The bank's own business checking account. Show Answer Correct Answer: A) The accounts of the bank's customers. 13. ..... are financial instruments whose value is derived from other underlying assets. A) Derivatives. B) Mutual Funds. C) Insurance. D) None of above. Show Answer Correct Answer: A) Derivatives. 14. Which is the best description of a 'money market' A) Made up of all those people and organisations who want money and all the people and organisations who are willing and able to supply money. B) Any place where buyers and sellers come together. C) The money used to pay for goods and services. D) A bank at which people can open an account at. Show Answer Correct Answer: A) Made up of all those people and organisations who want money and all the people and organisations who are willing and able to supply money. 15. The price paid for using someone else's money A) Debit card. B) Credit card. C) Interest rate. D) Interest. Show Answer Correct Answer: D) Interest. 16. ..... is money added to a checking or savings account. A) Deposit. B) Put in money. C) Check. D) Withdraw. Show Answer Correct Answer: A) Deposit. 17. Under section 38(1) of the BAFIA 1989, the banking institutions are required to maintain a ..... A) Maximum liquidity ratio. B) Reserves ratio. C) Minimum liquidity ratio. D) Intermediate liquidity ratio. Show Answer Correct Answer: C) Minimum liquidity ratio. 18. The ease with which investment can be converted into cash is ..... A) Low return. B) Low risk. C) Easement. D) Liquidity. Show Answer Correct Answer: D) Liquidity. 19. A company owned by families or a small number of investors and do not issue stock to the public. A) Private company. B) Industry. C) Public company. D) Portfolio. Show Answer Correct Answer: A) Private company. 20. A ..... savings bank is a financial institution owned by the depositors, to whom the profits go. A) Federal. B) Commercial. C) Depositors. D) Mutual. Show Answer Correct Answer: D) Mutual. 21. What is the function of a municipal bond? A) To provide money for a firm to expand its business. B) To provide money for the federal government to pay its debts. C) To provide money for local government to finance public schools. D) To provide money for individuals who are willing to take high risks. Show Answer Correct Answer: C) To provide money for local government to finance public schools. 22. Anything of value that is accepted in return for goods or services is ..... A) Credit. B) Products. C) Money. D) Cash. Show Answer Correct Answer: C) Money. 23. Marisol has written a $ 500 check to Stephen, but she has only $ 300 in her account and it is returned unpaid to Stephen. Marisol has written a A) Postdated check. B) Floating check. C) Bounced check. D) Promissory note. Show Answer Correct Answer: C) Bounced check. 24. Checkable deposits are classified as money because A) They can be readily used in purchasing goods and paying debts. B) Banks hold currency equal to the value of their checkable deposits. C) They are ultimately the obligations of the Treasury. D) They earn interest income for the depositor. Show Answer Correct Answer: A) They can be readily used in purchasing goods and paying debts. 25. A document where you record all checks and deposits and debit transactions for a checking account is called a A) Bank form. B) Check register. C) Deposit slip. D) Bank statement. Show Answer Correct Answer: B) Check register. 26. Auditor of SBI is appointed by ..... A) Shareholders. B) CAG. C) BOD. D) Central Govt. Show Answer Correct Answer: B) CAG. 27. Which of the following is an example of a Private Financial Institution? A) The Federal Reserve. B) Wells Fargo. C) Walmart. D) Best Buy. Show Answer Correct Answer: B) Wells Fargo. 28. Companies that give out small loans in return for a portion of an upcoming paycheck. They generally charge much higher interest on loans than other institutions. A) Title loan. B) Pay day lender. C) Credit union. D) Mortgage broker. Show Answer Correct Answer: B) Pay day lender. 29. The largest stock exchange in the world is ..... A) Korea Exchange. B) NYSE. C) Shanghai Stock Exchange. D) LSE. Show Answer Correct Answer: B) NYSE. 30. How do banks help businesses? A) Making loans. B) Sharing profits. C) Issuing insurance. D) Issuing credit cards. Show Answer Correct Answer: A) Making loans. ← 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