This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Direct deposit typically refers to your ..... sending your ..... electronically to your bank account. A) Employer, bills. B) Parents, allowance. C) Employer, paycheck. D) State government, taxes. Show Answer Correct Answer: C) Employer, paycheck. 2. Where do Banks get the money they use to loan out to others? A) The Federal Reserve. B) The Savings of Depositers. C) The Government. D) Other Banks. Show Answer Correct Answer: B) The Savings of Depositers. 3. A request made to a financial institution to cancel a check or payment that has not yet been processed A) Stop Payment. B) Start Payment. C) Stop Processing. D) Standby Payment. Show Answer Correct Answer: A) Stop Payment. 4. Stages of a loan cycle.i. credit analysis-loan administration-marketing-loan recoveryii. marketing-credit analysis-loan administration-loan recoveryiii. credit analysis-marketing-loan administration-loan recoveryiv. credit analysis-loan administration-loan recovery-marketing A) Iii. B) I. C) Ii. D) Iv. Show Answer Correct Answer: C) Ii. 5. Which of the following transactions may be missing when you go online to review your checking account balance? A) Check that you mailed to your cousin for his birthday today. B) Automatic payment for your car loan paid two days ago. C) Debit card transaction from purchasing snacks at a local convenience store today. D) ATM cash withdrawal from yesterday. Show Answer Correct Answer: A) Check that you mailed to your cousin for his birthday today. 6. Which of the following concept is used for islamic banking? A) Al Mudharabah (profit-sharing). B) Al Murabahah (cost plus). C) Al Hiwalah (remittance). D) All of above. Show Answer Correct Answer: D) All of above. 7. Banks have customers sign a signature card when opening a checking account tohelp protect against: A) Overdraft. B) Counterfeiting. C) Phishing. D) Forgery. Show Answer Correct Answer: D) Forgery. 8. Liam wants cash from his bank, but it is closed, He will use the ATM. A) Credit card. B) Debit card. C) Savings account. D) None of above. Show Answer Correct Answer: B) Debit card. 9. Which non-deposit institution is used by people who do not have bank accounts to cash paycheck? They also do electronic tax filing, money orders, utility bill payments. A) Investment Companies. B) Mortgage Companies. C) Check Cashing Outlets. D) Pawnshops. Show Answer Correct Answer: C) Check Cashing Outlets. 10. A For Profit Depository Institution. May be privately owned or publicly traded. Anyone can open account, no membership required. Generally lower savings rates and higher fees A) Check Cashing Company. B) Payday Lender. C) Bank. D) Credit Union. Show Answer Correct Answer: C) Bank. 11. The tools and strategies the Federal Reserve uses to stabilize the economy is called? A) Monetary Policy. B) Tight Money. C) Easy Money. D) Fiscal Policy. Show Answer Correct Answer: A) Monetary Policy. 12. Individuals who you financially support in your household are: A) Tax shelters. B) Exemptions. C) Dependents. D) Heirs. Show Answer Correct Answer: C) Dependents. 13. What is the number of electoral votes for each state based on? A) Number of registered voters in the state. B) Congressional Representation. C) How long that state has been part of the United States. D) Population. Show Answer Correct Answer: B) Congressional Representation. 14. If a company is already in liquidity crunch and flotation costs of the issue would be high. What kind of instrument will be appoints for the money market. A) COD. B) Treasury Bill. C) Commercial Paper. D) Commercial Bills. Show Answer Correct Answer: C) Commercial Paper. 15. What does a Checking Account Number identify? A) What date the check was written. B) A particular check. C) What bank the account is with. D) The primary identifier for ownership of an account. Show Answer Correct Answer: D) The primary identifier for ownership of an account. 16. Stock prices are A) Unstable trending downward at a moderate rate. B) Extremely volatile (suddenly changed in a short period of time). C) Relatively stable trending downward at a moderate rate. D) Relatively stable trending upward at a steady pace. Show Answer Correct Answer: B) Extremely volatile (suddenly changed in a short period of time). 17. What is a disadvantage of using a debit card? A) You could forget to put the transaction in your register and have an inaccurate balance. B) If someone steals your card they could steal all of your money. C) You could go into debt by purchasing more than you can afford. D) There are no disadvantages. Show Answer Correct Answer: A) You could forget to put the transaction in your register and have an inaccurate balance. 18. A prospectus tells you A) If you need a hedge fund. B) Whether or not you need a financial intermediary. C) If you have a liquid investment. D) How well your investment is performing. Show Answer Correct Answer: D) How well your investment is performing. 19. As a property of money, ..... means that money must maintain its value over time in order to be widely accepted. A) Recognized. B) Portable. C) Durable. D) Stable. Show Answer Correct Answer: D) Stable. 20. Financial markets promote greater economic efficiency by channeling funds from ..... to ..... A) Savers; borrowers. B) Investors; savers. C) Savers; lenders. D) Borrowers; savers. Show Answer Correct Answer: A) Savers; borrowers. 21. Goldman Sachs is which type of financial institution? A) Commercial bank. B) Investment bank. C) Brokerage firm. D) Insurance company. Show Answer Correct Answer: B) Investment bank. 22. Banks provide which of the following A) Debit cards. B) Loans. C) Check writing services. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. Tyler needs a place for his paycheck to be direct deposited, he knows he will not earn much interest and does not really like being a member of anything. What would be Tyler's best choice? A) Bank. B) Title Pawn. C) Credit Union. D) Payday Loan. Show Answer Correct Answer: A) Bank. 24. The type of account where any number of transactions can be made inappropriate day with bank is ..... A) Fixed deposit account. B) Savings Bank account. C) Recurring deposit account. D) Current account. Show Answer Correct Answer: D) Current account. 25. Used to withdraw money from an ATM. Does not have all the functions of a debit card. A) Debit Card. B) ATM Card. C) Credit Card. D) Prepaid card. Show Answer Correct Answer: B) ATM Card. 26. Business that keeps your money safe until you need it. A) Balance. B) Bank. C) Application. D) Bank account. Show Answer Correct Answer: B) Bank. 27. Reggie decides to set up an Automatic Bill Pay Service in order to: A) To be able to use an ATM. B) To have his money transferred at a predetermined date to pay a recurring bill. C) To automatically pay the bank for loans. D) To have the bank take money from his paycheck and put it directly into a savings account. Show Answer Correct Answer: B) To have his money transferred at a predetermined date to pay a recurring bill. 28. ..... type of account is opened by business man A) Current account. B) Term or fixed deposit account. C) Recurring deposit account. D) Savings Bank account. Show Answer Correct Answer: A) Current account. 29. If there is an issue with your bank statement or account balance, who should you contact to resolve the issue? A) The local police station. B) Your bank. C) The CFPB. D) All of the above. Show Answer Correct Answer: B) Your bank. 30. Which of the following services would LEAST likely be offered online by a bank? A) Funds transfers between accounts. B) Bill payment services. C) Safety deposit boxes. D) Loan applications. Show Answer Correct Answer: C) Safety deposit boxes. ← PreviousNext →Related QuizzesBanking QuizzesFinance QuizzesBanking And Financial Institutions Quiz 1Banking And Financial Institutions Quiz 2Banking 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