This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 24 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. This is a check guaranteed by a bank: A) ATM Check. B) Certified Check. C) Certificate of Deposit. D) Cashiers Check. Show Answer Correct Answer: B) Certified Check. 2. Money received is called ..... A) Income. B) Insurance. C) Savings. D) None of above. Show Answer Correct Answer: A) Income. 3. A share of common stock is a claim on a corporation's A) Debt. B) Liabilities. C) Expenses. D) Earnings and assets. Show Answer Correct Answer: D) Earnings and assets. 4. Financial institution that makes money by issuing loans. A) Securities firm. B) Finance company. C) Investment bank. D) Nondepository institution. Show Answer Correct Answer: B) Finance company. 5. Caiden earned $ 475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually . What will be his balance after 15 year? A) $ 839.45. B) $ 831.10. C) $ 827.52. D) $ 846.80. Show Answer Correct Answer: B) $ 831.10. 6. Which of the following will most benefit you financially? A) A savings account that compound interest monthly. B) A savings account that does not compound interest. C) A savings account that compound interest yearly. D) A savings account that compound interest daily. Show Answer Correct Answer: D) A savings account that compound interest daily. 7. All of the following can happen if you bounce a check (write an overdraft) EXCEPT A) You will be arrested for check fraud. B) The payee, if a business, will charge you a fee for a bounced check. C) You will be charged substantial fee by your bank. D) The unpaid check will be returned to the payee's bank. Show Answer Correct Answer: A) You will be arrested for check fraud. 8. Which of the following typically has the lowest fees or costs to use? A) Cash Advance. B) Credit Card. C) Payday Loan. D) Debit Card. Show Answer Correct Answer: D) Debit Card. 9. Use the RULE OF 72 to calculate how long it will take for your money to double if it's earning 6% in interest. A) 16 years. B) 36 years. C) 72 years. D) 12 years. Show Answer Correct Answer: D) 12 years. 10. Savings and Investment accounts offered by Islamic banks such as the case of BISB and KFH utilize the contracts below, except: A) Ijarah. B) Mudharabah Mutlaqah. C) Wakalah. D) Mudharabah Muqayyadah. Show Answer Correct Answer: A) Ijarah. 11. Which account is commonly opened by people to save their money for future needs? A) Savings bank account. B) Term or fixed deposit account. C) Current account. D) Recurring deposit account. Show Answer Correct Answer: D) Recurring deposit account. 12. Which of the following would you need to do to make sure that $ 750, 000 worth of your deposits were insured and backed by the federal government? A) Apply for both FDIC and NCUSIF insurance. B) Keep your deposits in a bank's safety deposit box. C) Place $ 250, 000 in accounts in three different financial institutions. D) Maintain a reconciled bank statement. Show Answer Correct Answer: C) Place $ 250, 000 in accounts in three different financial institutions. 13. Amount of money in your account at a given time. A) Bank. B) Balance. C) Application. D) Bank account. Show Answer Correct Answer: B) Balance. 14. There should be effective screening done at the time of ..... of credit cards A) Cancellation. B) Renewal. C) Issue. D) Payment. Show Answer Correct Answer: C) Issue. 15. Which of the following transactions will REDUCE your checking account balance immediately A) Writing your monthly rent check which you will mail tomorrow. B) Using your credit card to pay for your school books. C) Using your debit card to pay for groceries at the supermarket. D) Depositing a check at a local bank branch. Show Answer Correct Answer: C) Using your debit card to pay for groceries at the supermarket. 16. ..... is the ability to transfer money to others. A) Savings Services. B) Investment Advice. C) Payment Services. D) Loan Options. Show Answer Correct Answer: C) Payment Services. 17. High-interest rates might cause a corporation to ..... building a new plant that would provide more jobs. A) Complete. B) Consider. C) Postpone. D) Contemplate. Show Answer Correct Answer: C) Postpone. 18. Formula used to compute the amount of a depository institutions required reserves A) Fee. B) State-chartered bank. C) Reserve requirement. D) None of above. Show Answer Correct Answer: C) Reserve requirement. 19. ..... was established as a premiere economic-based Islamic financial institution inspired with a realization to help provide investment services and opportunities while managing pilgrimage activities for the Malaysian Muslim community. A) EPF. B) KWSP. C) Tabung Haji. D) SOCSO. Show Answer Correct Answer: C) Tabung Haji. 20. Financial markets promote economic efficiency by A) Channeling funds from savers to investors. B) Creating inflation. C) Reducing investment. D) Channeling funds from investors to savers. Show Answer Correct Answer: A) Channeling funds from savers to investors. 21. What should you do before you use an ATM? A) Ask someone nearby for help using the ATM. B) Share your pin number with trusted friends so you don't forget it. C) Inspect the ATM and its surroundings to make sure it is safe to use. D) Memorize your debit card number because you'll need to type it in at the ATM. Show Answer Correct Answer: C) Inspect the ATM and its surroundings to make sure it is safe to use. 22. What is it called when you spend more money than is in your account, often resulting in a fee? A) Credit. B) Debit. C) Overdraft. D) Transfer. Show Answer Correct Answer: C) Overdraft. 23. Making payments on time is an important part of managing which of the following? A) Checking account. B) Savings account. C) Loan account. D) Trust account. Show Answer Correct Answer: C) Loan account. 24. A market for dealing in monetary assets of short term nature, less than ..... year. A) One. B) Two. C) Five. D) None of above. Show Answer Correct Answer: A) One. 25. How many Board of Governor members are there? A) 5. B) 3. C) 7. D) 12. Show Answer Correct Answer: C) 7. 26. You should keep track of your spending because if you spend more money than you have in your bank account it is considered a ..... and usually will cause a fee. A) Balance. B) Overdraw. C) Bankruptcy. D) Withdraw. Show Answer Correct Answer: B) Overdraw. 27. Riba which is related to the exchange of certain type of goods/commodities that involve different counter value and or deferred delivery is: A) Riba Al Duyun. B) Riba Al Nasi'ah. C) Riba Al Fadl. D) Riba Al Jahiliyyah. Show Answer Correct Answer: C) Riba Al Fadl. 28. What is the purpose of money market? A) Serve as link between surplus and deficit units. B) Raise money for projects by issuing stock. C) Able to rapidly adjust liquidity position. D) Bring together investors holding capital. Show Answer Correct Answer: C) Able to rapidly adjust liquidity position. 29. Outstanding transactions are ..... A) Ones that were received by the bank after the closing date of your statement. B) Ones that were done perfectly and do not require your attention. C) Ones that match your own record of transactions. D) Ones that are on the bank statement but not on your own record. Show Answer Correct Answer: A) Ones that were received by the bank after the closing date of your statement. 30. When the national bank was established? A) 21 January 1957. B) 25 January 1956. C) 26 January 1959. D) 23 January 1959. Show Answer Correct Answer: C) 26 January 1959. ← 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