This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the total amount of money in a bank account at any given time? A) FDIC. B) Balance. C) Overdraft Fee. D) Account Number. Show Answer Correct Answer: B) Balance. 2. Banks move money between A) Other banks. B) Banks and individual customers. C) Governments. D) All of the answers. Show Answer Correct Answer: D) All of the answers. 3. Which of the following largely eliminated the wide variation of legal regulation from the country's payments system? A) Federal Reserve Act of 1913. B) Expedited Funds Availability Act of 1987. C) National Banking Act of 1864. D) Uniform Commercial Code of 1958. Show Answer Correct Answer: D) Uniform Commercial Code of 1958. 4. Depository institutions that offer many banking services and are owned by their customers A) Online banking. B) Commercial bank. C) Mobile banking. D) Credit union. Show Answer Correct Answer: D) Credit union. 5. Which one of the below is not a service provided by postal Bank of India A) Issue of national saving certificate. B) Mutual Funds. C) Money transfer. D) Kisan vikas Patra. Show Answer Correct Answer: B) Mutual Funds. 6. The Bank Secrecy Act of 1970 requires U.S. financial institutions to assist U.S.government agencies to: A) Set interest rates. B) Detect and prevent money laundering. C) Audit customer accounts. D) Audit financial institutions. Show Answer Correct Answer: B) Detect and prevent money laundering. 7. What is a check that does not appear on the bank statement called? A) Good check. B) Outstanding check. C) Cleared check. D) Bad check. Show Answer Correct Answer: B) Outstanding check. 8. ..... is the process of paying checks and other payments among different banks. A) Clearing. B) Loaning. C) Investing. D) Depositing. Show Answer Correct Answer: A) Clearing. 9. Which of the following statements about check cashing companies is TRUE? A) They have limited operating hours during the day. B) They sometimes offer free services. C) They charge high fees. D) They delay when you can access your cash. Show Answer Correct Answer: C) They charge high fees. 10. Checking account, debit cards, automatic withdrawal, and online payments are examples of ..... A) Investment Advice. B) Payment Services. C) Loan Options. D) Savings Services. Show Answer Correct Answer: B) Payment Services. 11. What is a CREDIT UNION? A) A nonprofit financial institution that is owned by its members and organized for their benefit. B) A type of short-term borrowing where a lender will extend high-interest credit based on a borrower's income and credit profile. C) Moving a balance from one credit card account to another. D) None of above. Show Answer Correct Answer: A) A nonprofit financial institution that is owned by its members and organized for their benefit. 12. All of these are required to open a bank account except ..... A) Valid Photo ID for proof of age / identity. B) Money to open the account. C) Social Security Card. D) A job. Show Answer Correct Answer: D) A job. 13. Which non-deposit institution makes loans based on the value of some tangible object, such as jewelry or electronics? A) Mortgage Companies. B) Check Cashing Outlets. C) Pawnshops. D) Investment Companies. Show Answer Correct Answer: C) Pawnshops. 14. Is a type of savings account that can offer a higher interest rate compared to traditional savings but lower rate than a CD. However, these accounts often require a higher minimum balance to be maintained. A) Certificate of Deposit. B) Money Market Account. C) Traditional Savings Account. D) Mutual Fund. Show Answer Correct Answer: B) Money Market Account. 15. Commercial Banks A) These banks also offer credit services, cash management and trade finance. B) Their clients include large corporations, other financial institutions. C) These manage the banking and financial needs of high net worth individuals. D) None of above. Show Answer Correct Answer: A) These banks also offer credit services, cash management and trade finance. 16. Which of the following are meant to store money which is NOT intended for daily expenses? A) Savings accounts. B) Checking accounts. C) Loan accounts. D) Credit accounts. Show Answer Correct Answer: A) Savings accounts. 17. How much money are you supposed to keep in your emergency funds? A) 4-6 months living expenses. B) 6-8 months living expenses. C) 1 year living expenses. D) None of above. Show Answer Correct Answer: B) 6-8 months living expenses. 18. A Bank Statement contains the following: A) How many days a year the bank is open. B) How many loans a bank has given in a year. C) A list of transactions of someone's bank account. D) When the bank transferred money. Show Answer Correct Answer: C) A list of transactions of someone's bank account. 19. The 9-digit number printed on a check that identifies the bank that holds the checking account and is responsible for payment is called the A) Account number. B) NSF number. C) Transit number. D) Check number. Show Answer Correct Answer: C) Transit number. 20. People who puts money in the banks A) Depositors. B) Withdrawers. C) Customers. D) Tellers. Show Answer Correct Answer: A) Depositors. 21. Which non-deposit institution chooses investment opportunities for long-term growth of their money and make mutual funds available. A) Life Insurance Companies. B) Pawn Shops. C) Consumer Finance Companies. D) Investment Companies. Show Answer Correct Answer: D) Investment Companies. 22. Account that lets you save money A) Minimum balance. B) Savings account. C) Interest. D) Checking account. Show Answer Correct Answer: B) Savings account. 23. Last year, First National Bank of Springfield paid $ 5.1 million in interest to depositors; it collected $ 7.8 million in interest from loans. Calculate the spread. A) $ 3.8 million. B) $ 12.9 million. C) $ 2.7 million. D) $ 5.1 million. Show Answer Correct Answer: C) $ 2.7 million. 24. Which savings account will earn you the least money? A) One that earns simple interest monthly. B) One that compounds interest daily. C) One that compounds interest monthly. D) One that earns simple interest daily. Show Answer Correct Answer: A) One that earns simple interest monthly. 25. The deposits for a fixed term can be deposited in ..... account A) Current account. B) Term or fixed deposit account. C) Saving account. D) Recurring deposit account. Show Answer Correct Answer: B) Term or fixed deposit account. 26. Writing a check is more secure than cash in all the circumstances EXCEPT A) It is safer to mail cash for a bill since someone could steal the check and cash it. B) Some bills cannot be paid with cash. C) Someone can steal your cash and you would be out that amount. D) You have proof of payment with a check. Show Answer Correct Answer: A) It is safer to mail cash for a bill since someone could steal the check and cash it. 27. Examples of these types of banks are Wells Fargo, Chase, and Regions A) Commercial banks. B) Credit unions. C) Charters. D) None of above. Show Answer Correct Answer: A) Commercial banks. 28. A blank endorsement on a check: A) Cancels the check. B) Restricts the use of the check. C) Has no effect on the check. D) Creates a check that can be cashed by anyone. Show Answer Correct Answer: D) Creates a check that can be cashed by anyone. 29. In which of the following case bank auditor is considered as disqualified? A) A body corporate other than LLP. B) Limited Liability Partnership. C) An individual who is a qualified CA. D) Partnership Firm. Show Answer Correct Answer: A) A body corporate other than LLP. 30. Allows customers to pay for purchases directly from their checking account. A) Debit card. B) Credit card. C) Deposit. D) Savings account. Show Answer Correct Answer: A) Debit card. ← PreviousNext →Related QuizzesBanking QuizzesFinance QuizzesBanking And Financial Institutions Quiz 1Banking 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 8Banking And Financial Institutions Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books