This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 19 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A key factor in producing high economic growth is A) Eliminating foreign trade. B) Well-functioning financial markets. C) High-interest rates. D) Stock market volatility. Show Answer Correct Answer: B) Well-functioning financial markets. 2. They make loans based on the value of jewelry or some other valuable item. A) Consumer finance companies. B) Check-cashing outlets. C) Pawn shops. D) Investment companies. Show Answer Correct Answer: C) Pawn shops. 3. The Federal Reserve maintains the ..... of our currency. A) Design. B) Value. C) Trading. D) Color. Show Answer Correct Answer: B) Value. 4. A card issued by a bank that allows the holder to check account balances, withdraw and deposit cash, and transfer money from one account to another using an ATM. A) ATM card. B) ID card. C) Debit card. D) Credit card. Show Answer Correct Answer: A) ATM card. 5. Financial institution that offers savings and loan services. Also called "thriftys" A) Nondepository institution. B) Depository institution. C) Savings and loan institution. D) Credit union. Show Answer Correct Answer: C) Savings and loan institution. 6. Money the banks make you pay for breaking the rules A) Deposit. B) Withdrawal. C) Deposit slip. D) Service charge. Show Answer Correct Answer: D) Service charge. 7. What type of endorsement is the most secure? A) Endorsement in Full. B) Restrictive Endorsement. C) Blank Endorsement. D) Full Endorsement. Show Answer Correct Answer: B) Restrictive Endorsement. 8. Contains the checks and the check register: A) Check. B) Checkbook. C) Check Register. D) None of above. Show Answer Correct Answer: B) Checkbook. 9. Frank has ten dollars. If he does not spend any of the money, it will keep its worth of ten dollars. How is that using money? A) A medium of exchange. B) A unit of measure. C) A store of value. D) None of above. Show Answer Correct Answer: C) A store of value. 10. The most likely computer management tool for financial forms is: A) Spreadsheet. B) Database. C) PowerPoint. D) Word processing. Show Answer Correct Answer: A) Spreadsheet. 11. Your money is insured for up to how much when kept in a bank or credit union? A) $ 200, 000. B) $ 100, 000. C) $ 150, 000. D) $ 250, 000. Show Answer Correct Answer: D) $ 250, 000. 12. The Indian postal department is planning to start a bank to be tentatively called the ..... A) Central bank of India. B) Postal bank of India. C) State bank of Mysore. D) Canada bank. Show Answer Correct Answer: B) Postal bank of India. 13. An increase in interest rates might ..... saving because more can be earned in interest income. A) Encourage. B) Discourage. C) Disallow. D) Invalidate. Show Answer Correct Answer: A) Encourage. 14. An issue that arises when an account holder seeks to make a purchase or clear a check that their account cannot cover with the funds available. may also be referred to as "non-sufficient funds, " or "NSF" A) Promissory note. B) Electronic Funds Transfer. C) Not Your Best Life. D) Insufficient Funds. Show Answer Correct Answer: D) Insufficient Funds. 15. The memo line on a check is ..... A) Where you sign your name. B) Where you should write the check number. C) Optional. D) Where you should write the amount. Show Answer Correct Answer: C) Optional. 16. An organization that provides services related to money. A) Insurance company. B) Charter. C) Financial institution. D) Commercial bank. Show Answer Correct Answer: C) Financial institution. 17. Todd goes to a bank in order to get a Car Loan so he can buy a car. What is he going to give the bank as collateral? A) His wedding ring. B) Real estate. C) Savings account. D) Car title. Show Answer Correct Answer: D) Car title. 18. The stock market is a physical place. A) Yes, it's located in most major cities around the world. B) No, trading is all done online. C) Yes and No, there are physical places where stocks are sold, but they are also sold virtually. D) None of above. Show Answer Correct Answer: C) Yes and No, there are physical places where stocks are sold, but they are also sold virtually. 19. When you are making payments on a car and/or house you have a ..... A) Bankruptcy. B) Withdraw. C) Overdraw. D) Debt. Show Answer Correct Answer: D) Debt. 20. What is a SAVINGS ACCOUNT? A) A bank account that you cannot deposit your money from for a specific amount of time. B) A bank account that you can write checks from. C) A bank account that earns interest. D) None of above. Show Answer Correct Answer: C) A bank account that earns interest. 21. Deposits are insured by the Federal Deposit Insurance Corporation up to ..... per depositor. A) $ 200, 000. B) $ 150, 000. C) $ 100, 000. D) $ 250, 000. Show Answer Correct Answer: D) $ 250, 000. 22. The most common & safest financial institution A) Savings & loan. B) CD's & DDA's. C) Commercial bank. D) Federal depoisitory. Show Answer Correct Answer: C) Commercial bank. 23. The first ever Islamic financial institution established in the 1960s outside the MENA region is: A) Mit Ghamr Savings Bank. B) Dubai Islamic Bank. C) Bank Islam Malaysia. D) Tabung Hajj Malaysia. Show Answer Correct Answer: D) Tabung Hajj Malaysia. 24. Which statement is true of a bank? A) For-profit institution owned by shareholders. B) Generally offers lower fees and interest on loans than credit unions. C) Known for providing more personalized service. D) Accepts only members who meet certain qualifications. Show Answer Correct Answer: A) For-profit institution owned by shareholders. 25. The contract in Islamic banking that is related to the agricultural goods is: A) Salam. B) Musharakah. C) Istisna'. D) Ijarah. Show Answer Correct Answer: A) Salam. 26. What is the advantage of leasing? A) Lease rental payments are long-term expenses. B) Cost of maintaining the asset may be borne by the lessee. C) Provides 100% financing. D) No ownership. Show Answer Correct Answer: C) Provides 100% financing. 27. Which one of the the below options is not a characteristic of Bank? A) Lending loans. B) Withdrawal and payment. C) Accepting deposits. D) Mutual funds. Show Answer Correct Answer: D) Mutual funds. 28. Which of the following is NOT one of the Fed's overall goals? A) To stabilize prices. B) To maintain interest rates. C) To encourage economic growth. D) To encourage full employment. Show Answer Correct Answer: B) To maintain interest rates. 29. How do banks make a profit on loans? A) Over-charging customers. B) Greedy profit capitalists. C) By charging higher interest on loan paybacks than they pay interest on savings. D) Banks usually lose money on loans. Show Answer Correct Answer: C) By charging higher interest on loan paybacks than they pay interest on savings. 30. Once money is "loaded" , it can be used to make transactions just like a debit card, but unlike a debit it is NOT connected to a bank account. Often comes with heavy fees for basic services! Beware! A) Prepaid Card. B) Debit Card. C) Store Gift Card. D) Credit Card. Show Answer Correct Answer: A) Prepaid Card. ← 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