This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 25 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which deposit institution specialize in savings accounts and making loans for home mortgages? A) Credit Unions. B) Mutual Savings Banks. C) Savings and Loan Association. D) Commercial Bank. Show Answer Correct Answer: C) Savings and Loan Association. 2. The person to whom a check is written is the A) Endorser. B) Payee. C) Drawee. D) Drawer. Show Answer Correct Answer: B) Payee. 3. Which of the following is the most significant difference between commercial banks and credit unions? A) How they pay interest on deposits. B) How they charge interest on loans. C) What types of deposits they accept. D) How they are regulated by the government. Show Answer Correct Answer: D) How they are regulated by the government. 4. The phrase used for putting money into a savings account is: A) Verifying the account. B) Making a deposit. C) Making a withdrawal. D) Balancing the account. Show Answer Correct Answer: B) Making a deposit. 5. Extended Bank Negara Malaysia's powers for the supervision and regulation of financial institutions A) DFI 2002. B) IFSA 2013. C) MSBA 2011. D) BAFIA 1989. Show Answer Correct Answer: D) BAFIA 1989. 6. The widest range of financial services is offered by A) A commercial bank. B) A check-cashing outlet. C) A mutual savings bank. D) An investment company. Show Answer Correct Answer: A) A commercial bank. 7. Which of the following financial institutions provides loans for prospective home buyers? A) Mortgage companies. B) Brokerage firms. C) Insurance companies. D) Savings and loan associations. Show Answer Correct Answer: A) Mortgage companies. 8. What do commercial banks provide service to? A) None. B) A commercial bank provides banking services. C) A commercial bank provides to businesses. D) A commercial bank provides banking services to businesses, institutions and some individuals. Show Answer Correct Answer: D) A commercial bank provides banking services to businesses, institutions and some individuals. 9. What is money borrowed that must be repaid, usually with interest? A) Debit card. B) Check. C) Loan. D) Checking account. Show Answer Correct Answer: C) Loan. 10. A cash obligation A) Asset. B) Liquid asset. C) Equity. D) Liability. Show Answer Correct Answer: D) Liability. 11. Interest earned on interest is called A) Interest on fire. B) Compound interest. C) Double interest. D) Complicated interest. Show Answer Correct Answer: B) Compound interest. 12. Four types of Depository Institutions are Commercial Bank, Mutual Savings Bank, Credit Unions and A) Pawn Shops. B) Federal Reserve. C) Savings and Loan Association. D) Life Insurance Agencies. Show Answer Correct Answer: C) Savings and Loan Association. 13. What relationship does risk have to return? A) With lower risk, the potential for a return disappears. B) The higher the risk, the greater the potential for return. C) The higher the risk, the lower the potential for return. D) The lower the risk, the greater the potential for return. Show Answer Correct Answer: B) The higher the risk, the greater the potential for return. 14. Money placed into an account. A) Line of credit. B) Investment bank. C) Finance company. D) Deposit. Show Answer Correct Answer: D) Deposit. 15. Money subtracted from an account A) Deposit. B) Balance. C) Transfer. D) Withdrawal. Show Answer Correct Answer: D) Withdrawal. 16. The standard insurance amount provided by the FDIC is ..... per depositor, per insured bank, for each account ownership category. A) $ 100, 000. B) $ 1, 000, 000. C) $ 500, 000. D) $ 250, 000. Show Answer Correct Answer: D) $ 250, 000. 17. What is the name of our nation's central bank? A) The Federal Reserve. B) The United States National Bank. C) Bank of America. D) The National Bank of the United States. Show Answer Correct Answer: A) The Federal Reserve. 18. In a point-of ..... transaction, a merchant accepts a debit card to pay for purchases. A) Sale. B) Service. C) Reserve. D) Stop. Show Answer Correct Answer: A) Sale. 19. ..... covers the entire range of services provided by a merchant banker. A) Cooperate counselling. B) Project counselling. C) Credit syndication. D) None of above. Show Answer Correct Answer: A) Cooperate counselling. 20. Why is it important to reconcile your bank statements? A) To avoid spending more than what is in your account. B) To detect any errors in your account. C) To determine if you were charged any fees. D) All of the above. Show Answer Correct Answer: D) All of the above. 21. Refers to the use of a smartphone or other cellular device to perform online banking tasks while away from your home computer, such as monitoring account balances, transferring funds between accounts, bill payment and locating an ATM A) Mobile Banking. B) Brick and Mortar Banking. C) Traditional Banking. D) Wire Fraud. Show Answer Correct Answer: A) Mobile Banking. 22. What institution clears checks for member banks? A) US Banks. B) Federal Reserve. C) Credit Unions. D) White House. Show Answer Correct Answer: B) Federal Reserve. 23. Which financial institution offer loans such as mortgages and auto loans? A) Commercial banks. B) Credit unions. C) Savings and loans. D) All of them. Show Answer Correct Answer: D) All of them. 24. When you don't have enough money in your checking account to pay for a check, the check will: A) Fail. B) Bounce. C) Drop. D) Rip. Show Answer Correct Answer: B) Bounce. 25. The main purpose of the Federal Reserve System is to A) Collect tax revenue for state and local governements. B) Supervise and regulate member banks. C) Protect depositors' money in case of bank failure. D) Inform consumers of wise investments choices. Show Answer Correct Answer: B) Supervise and regulate member banks. 26. These institutions do not receive deposits but provide other financial services for a fee. A) Depository institutions. B) Non depository institutions. C) Clearing houses. D) Credit unions. Show Answer Correct Answer: B) Non depository institutions. 27. The bond markets are important because they are A) Easily the most widely followed financial markets in the United States. B) The markets where foreign exchange rates are determined. C) The markets where interest rates are determined. D) The markets where all borrowers get their funds. Show Answer Correct Answer: C) The markets where interest rates are determined. 28. You can deduct money from your bank account to make a purchase by use of a A) Debit card. B) Prepaid card. C) Charge card. D) Credit card. Show Answer Correct Answer: A) Debit card. 29. A ..... that pools money from many investors and invests in well diversified portfolio of sound investment. A) Mutual fund. B) Commercial Banks. C) Insurance companies. D) Venture capital. Show Answer Correct Answer: A) Mutual fund. 30. The market value of all share or equity issued by a company is called it's ..... A) Return on Capital. B) Market Capitalisation. C) Total Equity. D) Money for Investment. Show Answer Correct Answer: B) Market Capitalisation. ← 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