This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which type of check endorsement begins with "For deposit only to account No. 123456 ..... "? A) Special/full. B) Blank. C) Restrictive. D) Transfer. Show Answer Correct Answer: C) Restrictive. 2. When did RBI nationalise? A) 1952. B) 1949. C) 1947. D) 1948. Show Answer Correct Answer: B) 1949. 3. "Form A" of Third Schedule of Banking Regulation Act, 1949 deals with preparation of ..... of financial statements of Banks. A) Appointment of auditor. B) Balance Sheet. C) Revenue Account. D) Profit & Loss Account. Show Answer Correct Answer: B) Balance Sheet. 4. Savings accounts typically offer more interest than what type of account? A) Certificate of deposit. B) Checking account. C) Retirement account. D) Money market account. Show Answer Correct Answer: B) Checking account. 5. How do banks make money? A) Loaning out money and charging interest. B) Paying interest to depositors. C) Providing public goods. D) Selling resources. Show Answer Correct Answer: A) Loaning out money and charging interest. 6. The Federal Reserve Bank is managed by a ..... A) Board of Managers. B) Board with a chairman. C) Board of Bankers. D) Board of Governors. Show Answer Correct Answer: D) Board of Governors. 7. An example for nationalized bank is ..... A) State bank of India. B) Rural bank. C) Option A and B. D) None of the above. Show Answer Correct Answer: A) State bank of India. 8. Direct deposit, automated transfer, automated loan payments, and automated bill pay are all examples of A) Automated services you can request from your financial institution. B) Bad financial practices as you could become a victim of fraud. C) Something that may become available in the future. D) Services that you can be charged for at your financial institution. Show Answer Correct Answer: A) Automated services you can request from your financial institution. 9. The financial intermediaries that the average person interacts with most frequently are A) Finance companies. B) Over-the-counter markets. C) Banks. D) Exchanges. Show Answer Correct Answer: C) Banks. 10. Which one of the following is a title typically held by a bank officer? A) Job analyst. B) Controller. C) Marketing coordinator. D) Bookkeeper. Show Answer Correct Answer: B) Controller. 11. Payment made for the use of borrowed money is called A) Financial Institution. B) Creditors. C) Secured. D) Interest. Show Answer Correct Answer: D) Interest. 12. What agency regulates banks and financial institutions and insures each depositor's accounts up to $ 250, 000? A) Internal Revenue Service. B) Federal Deposit Insurance Corporation. C) State Farm. D) Individual Banks. Show Answer Correct Answer: B) Federal Deposit Insurance Corporation. 13. Emilio borrows $ 1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years? A) $ 1350. B) $ 192. C) $ 150. D) $ 1392. Show Answer Correct Answer: D) $ 1392. 14. In a trust account, the ..... is the person who establishes the account and paysfunds into the account and the ..... is the person who receives the funds uponthe passing of the person or when they have met the required age. A) Trustee; beneficiary. B) Benefactor; trustee. C) Beneficiary; trustee. D) Trustee; benefactor. Show Answer Correct Answer: A) Trustee; beneficiary. 15. A check that is issued and guaranteed by a bank A) Certified checks. B) Cashier's checks. C) Money orders. D) Traveler's checks. Show Answer Correct Answer: B) Cashier's checks. 16. Typical e-banking services allow customers to do all of the following EXCPET A) Transfer funds from savings to checking. B) Print new checks. C) Pay bills online. D) Obtain cash. Show Answer Correct Answer: D) Obtain cash. 17. A check that is drawn by a bank on its own funds and signed by an authorized officer of the bank is a: A) Certified Check. B) Cashiers Check. C) Collateralized Check. D) Certificate of Deposit. Show Answer Correct Answer: B) Cashiers Check. 18. What is one advantage of a money market mutual fund as compared with a savings account? A) It has more risk. B) It is insured by the FDIC. C) It has higher interest. D) It has lower interest. Show Answer Correct Answer: C) It has higher interest. 19. What service is available through home banking on the internet? A) Selling gold. B) Checking account balances. C) Lending money to a friend. D) Withdrawing cash. Show Answer Correct Answer: B) Checking account balances. 20. A service provided by a bank that protects against non-sufficient funds. If you spend more than what is in your checking account, this covers the purchase. Beware, though, banks can charge steep fees for this service! A) Overdraft Protection. B) Payday Loan. C) Over the top protection. D) Overage Charges. Show Answer Correct Answer: A) Overdraft Protection. 21. A prepaid card for phone service and other similar transactions. A) Stored-value card. B) Credit card. C) Debit card. D) None of above. Show Answer Correct Answer: A) Stored-value card. 22. ..... is a company engaged in the business of dealing with monetary (money) transactions; such as, loans, investments, and currency exchange. A) Financial Banks. B) Financial Institution. C) Commercial Institution. D) Commercial Bank. Show Answer Correct Answer: B) Financial Institution. 23. One benefit of our free enterprise systtem is that it A) Allows the government to decide what goods and services will be produced. B) Provides people with opportunities to invest their savings for their most productive use. C) Restricts individual wealth. D) Benefits businesses and not individuals. Show Answer Correct Answer: B) Provides people with opportunities to invest their savings for their most productive use. 24. A plastic card that is electronically connected to the cardholder's depository institution account A) Savings card. B) Interest card. C) Debit card. D) Credit card. Show Answer Correct Answer: C) Debit card. 25. When I purchase a corporate ....., I am lending the corporation funds for a specific time. When I purchase a corporation's ....., I become an owner in the corporation. A) Bond; debt security. B) Bond; stock. C) Stock; bond. D) Stock; debt security. Show Answer Correct Answer: B) Bond; stock. 26. What agency performs central banking functions in the United States? A) Federal Reserve. B) Securities and Exchange Commission. C) US Treasury Department. D) First National Bank. Show Answer Correct Answer: A) Federal Reserve. 27. What happens to the costumer's money if the bank goes bankrupt? A) He loses it all. B) It is insured by law so he gets back the whole amount. C) It is insured by law up to 100 000 HUF / costumer / bank. D) None of above. Show Answer Correct Answer: C) It is insured by law up to 100 000 HUF / costumer / bank. 28. Which is the following is commercial Bank A) Muamalat Bank. B) Affin Bank. C) Bank Rakyat. D) HSBC bank Malaysia Berhad. Show Answer Correct Answer: B) Affin Bank. 29. A check register is a tool for ..... A) Accessing your account. B) Paying regular bills. C) Keeping track of your account balance. D) Earning interest on your balance. Show Answer Correct Answer: C) Keeping track of your account balance. 30. Fill in the blanks. Many banks do not charge fees for transactions if you keep a minimum balance. They offer a ..... A) NSF charge. B) Fee waiver. C) Unlimited transactions. D) Transaction limit. Show Answer Correct Answer: B) Fee waiver. ← 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 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