This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The banks which perform function of accepting and lending loans are known as ..... banks A) Commercial Banks. B) Regional Rural Banks. C) Development Banks. D) Cooperative Banks. Show Answer Correct Answer: A) Commercial Banks. 2. Financial institution that does not accept deposits. A) Securities firm. B) Nondepository institution. C) Finance company. D) Depository institution. Show Answer Correct Answer: B) Nondepository institution. 3. ..... is a type of software to prepare income tax forms. A) Turbo tax. B) Excel. C) Quicken. D) Database. Show Answer Correct Answer: A) Turbo tax. 4. How many federal reserve districts are there? A) 21. B) 10. C) 12. D) 5. Show Answer Correct Answer: C) 12. 5. When have banks existed since? A) 16th century. B) 10th century. C) 14th century. D) 12th century. Show Answer Correct Answer: C) 14th century. 6. A stock is ..... A) A type of debt investment that acts like a loan. B) A type of savings account that pays interest based on current interest rates in the money market. C) A type of investment that invests in a mix of different types of investments. D) A share of ownership in a company. Show Answer Correct Answer: D) A share of ownership in a company. 7. What fees do you have to consider when you open a bank account? A) Interest, commission, maintenance fee. B) Opening fee, monthly fee, fee for withdrawing money. C) Opening fee, monthly fee, dividend. D) None of above. Show Answer Correct Answer: B) Opening fee, monthly fee, fee for withdrawing money. 8. It is safer to keep your money here than at home under your mattress. A) Bank. B) Want. C) Inflation. D) Balance. Show Answer Correct Answer: A) Bank. 9. Mary has endorsed a check by writing "For deposit only" above his signature. This is a A) Blank endorsement. B) Restrictive endorsement. C) Special endorsement. D) Full endorsement. Show Answer Correct Answer: B) Restrictive endorsement. 10. The ..... acts as the federal government's bank A) National Bank of the United States. B) Federal Reserve Bank. C) First Bank of the United States. D) Bank of America. Show Answer Correct Answer: B) Federal Reserve Bank. 11. Form you fill out with personal and employment information. A) Bank account. B) Bank. C) Application. D) Balance. Show Answer Correct Answer: C) Application. 12. Signing the back of a check, along with the words "For Deposit Only" is which type of endorsement? A) Special. B) Good. C) Blank. D) Restrictive. Show Answer Correct Answer: D) Restrictive. 13. A nonprofit financial institution that is privately owned and provides banking services for its members is called a ..... A) Credit union. B) Insurance agency. C) Trust department. D) Bank. Show Answer Correct Answer: A) Credit union. 14. Which is a difference between Banks and Credit Unions? A) Banks have Checking accounts and Credit Unions have Savings Accounts. B) Banks are for profit. Credit Unions are Non-profit. C) Banks can give loans and Credit Unions cannot. D) Credit Unions allow everyone to join and Banks are selective. Show Answer Correct Answer: B) Banks are for profit. Credit Unions are Non-profit. 15. When must you sign a deposit slip? A) When you deposit any amount of cash. B) When you deposit more than $ 10, 000. C) When you receive cash back. D) When you deposit more than $ 100. Show Answer Correct Answer: C) When you receive cash back. 16. Unchanging rate of interest A) Savings. B) Interest. C) Fixed interest rate. D) Variable Interest Rate. Show Answer Correct Answer: C) Fixed interest rate. 17. One job of the Federal Reserve is A) Withholding social security. B) Holding of reserves. C) Loaning individuals money. D) Collecting outstanding loans. Show Answer Correct Answer: B) Holding of reserves. 18. An individual who hold legal control of assets in a trust account is known as which of the following? A) Beneficiary. B) Dependent. C) Claimer. D) Controller. Show Answer Correct Answer: A) Beneficiary. 19. ..... normally has a maturity between 6 months to 3 years and more.i. term loanii. personal loaniii. housing loan A) I. B) Ii. C) Iii. D) None of above. Show Answer Correct Answer: B) Ii. 20. For-profit depository businesses that offer financial services to both consumers and other businesses A) Checking account. B) Commercial bank. C) Mobile banking. D) Debit card. Show Answer Correct Answer: B) Commercial bank. 21. Is the minimum dollar amount that a customer must have in an account to receive some service benefits, such as keeping the account open or receiving interest OR to avoid paying account maintenance fees A) Maximum Balance. B) Minimum Liquid Assets. C) Minimum Balance. D) None of the above. Show Answer Correct Answer: C) Minimum Balance. 22. Money that has no intrinsic value and does not represent another valuable commodity in a vault somewhere. A) Fiat money. B) Representative money. C) Commodity money. D) Monopoly money. Show Answer Correct Answer: A) Fiat money. 23. Consumers can borrow money from banks to A) Raise capital. B) Save money. C) Get a credit card. D) Purchase a home or pay for college. Show Answer Correct Answer: D) Purchase a home or pay for college. 24. Why do banks charge you fees? A) So I can leave their bank. B) Because they are mean. C) They want money. D) For different services. Show Answer Correct Answer: D) For different services. 25. Financial institutions are monitored through which of the following? A) Federal Deposit Insurance Corporation. B) Federal Reserve System. C) National Financial Institution Agency. D) National Banking Union Administration. Show Answer Correct Answer: B) Federal Reserve System. 26. In the United States, the money supply (M1) is comprised of: A) Coins, paper currency, and checkable deposits. B) . currency, checkable deposits, and Series E bonds. C) Coins, paper currency, checkable deposits, and credit balances with brokers. D) Paper currency, coins, gold certificates, and time deposits. Show Answer Correct Answer: A) Coins, paper currency, and checkable deposits. 27. What is the additional insurance that many finance companies require owners to payfor when they finance an auto loan? A) Payment. B) Gap. C) Home. D) Life. Show Answer Correct Answer: B) Gap. 28. Financial institutions that get funds from the public and use them to finance their business A) Wholesale bank. B) Depository intermediary. C) Nondepository intermediary. D) Depositor. Show Answer Correct Answer: B) Depository intermediary. 29. The correct order in the principles of good lendingi. Purpose-Amount-Duration-Repayments-Securityii. Amount-Purpose-Repayments-Duration-Securityiii. Duration-Amount-Purpose-Repayments-Securityiv. Security-Purpose-Duration-Amount-Repayments A) Iv. B) Iii. C) I. D) Ii. Show Answer Correct Answer: C) I. 30. When the bank pays a transaction for you because you don't have enough money in your account it's called an ..... A) Bank. B) Overdraft. C) Income. D) Withdrawal. Show Answer Correct Answer: B) Overdraft. ← 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 7Banking And Financial Institutions Quiz 8Banking And Financial Institutions Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books