This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Financial institutions that obtain funds from the public and use them to finance the loans and investments that provide the majority of their income. A) Depository institutions. B) Brokerage houses. C) Loan companies. D) Non depository institutions. Show Answer Correct Answer: A) Depository institutions. 2. A merchant banking is a financial institutions conducting money market activities and a lending A) Underwriting and financial advice. B) Investment service. C) All of above. D) None of above. Show Answer Correct Answer: C) All of above. 3. How would you reconcile your bank account to avoid spending more than you have? A) Contact your financial institution to read your transactions for the past month. B) Compare your own records of your spending with your financial institution's records. C) Review your bank statement once at the end of the month. D) None of the above. Show Answer Correct Answer: B) Compare your own records of your spending with your financial institution's records. 4. Two types includes mutual savings and loan associations and stock savings and loans association. A) Credit unions. B) Savings and loans associations. C) Commercial banks. D) Insurance companies. Show Answer Correct Answer: B) Savings and loans associations. 5. Poorly performing financial markets can be the cause of A) Financial stability. B) Wealth. C) Poverty. D) Financial expansion. Show Answer Correct Answer: C) Poverty. 6. What type of investment offers the most liquidity? A) Checking account. B) Mutual funds. C) CD's. D) Stocks. Show Answer Correct Answer: A) Checking account. 7. A profit is ..... A) Money lent. B) Money earned. C) Money spent. D) Money borrowed. Show Answer Correct Answer: B) Money earned. 8. Online bank accounts are available ..... A) Until midnight. B) During office hours. C) 24 hours a day. D) Monday to Friday. Show Answer Correct Answer: C) 24 hours a day. 9. Type of savings plan where money is left on deposit for a stated period of time. A) Certificate of Deposit (CD). B) Checking Account. C) Money Market. D) Savings Account. Show Answer Correct Answer: A) Certificate of Deposit (CD). 10. In Murabahah financing, when an orderer is asked to pay a certain amount of money in advanced to the seller in order to show seriousness towards the transaction that can later be refunded upon certain conditions, the contract used is called: A) Arboun. B) Hamish Jiddiyyah. C) Down payment. D) All options are correct. Show Answer Correct Answer: B) Hamish Jiddiyyah. 11. How do banks make profits? A) By charging people interest to borrow money. B) By charging people interest to keep their money there. C) By charging a fee every time a customer writes a check or uses a debit card. D) None of the above-banks are nonprofit institutions. Show Answer Correct Answer: A) By charging people interest to borrow money. 12. Financial institutions that do not take or hold deposits A) Wholesale bank. B) Depositor. C) Depository intermediary. D) Nondepository intermediary. Show Answer Correct Answer: D) Nondepository intermediary. 13. Which of the following pays the highest interest rate? A) CD. B) Checking account. C) Savings account. D) Money market account. Show Answer Correct Answer: A) CD. 14. PIN stands for ..... A) Payment identification number. B) Personal identification number. C) Personal information number. D) Payment information number. Show Answer Correct Answer: B) Personal identification number. 15. Also called a check card, allows you to make purchases by swiping your card through a point of sale (POS) terminal that is usually located at the merchant's checkout counter. A) Social security card. B) Debit card. C) ATM card. D) Credit card. Show Answer Correct Answer: B) Debit card. 16. Checking accounts and debit cards are examples of a financial institution's A) Investment services. B) Payment services. C) Lending services. D) Saving services. Show Answer Correct Answer: B) Payment services. 17. Protects you from overdrawing your account. Money is automatically taken from your savings account if you write a check or make an ATM withdrawal for too much money. A) Withdraw Protection. B) Overdraft Protection. C) Blanket protection. D) Maximum Protection. Show Answer Correct Answer: B) Overdraft Protection. 18. ..... is the act of opening accounts at two or more institutions and using the "floattime" of available funds to crate fraudulent balances. A) Check kiting. B) Reconciliation. C) Forgery. D) Counterfeiting. Show Answer Correct Answer: A) Check kiting. 19. The U.S. corporation insuring deposits in the U.S. against bank failure. A) Federal Deposit Insurance Corporation. B) National Credit Union Association. C) Savings and loan associations. D) None of above. Show Answer Correct Answer: A) Federal Deposit Insurance Corporation. 20. Which bank is called lender of last resort? A) Commercial bank. B) Agricultural bank. C) Central bank. D) None of above. Show Answer Correct Answer: C) Central bank. 21. Which non-deposit institution provide loans for buying a home or other real estate? A) Mortgage Companies. B) Investment Companies. C) Pawnshops. D) Check Cashing Outlets. Show Answer Correct Answer: A) Mortgage Companies. 22. The cashier of a bank should not have access to ..... of a bank A) Ledger Accounts. B) Currency counting machine. C) Attendance register. D) Cash Vault. Show Answer Correct Answer: A) Ledger Accounts. 23. Financial institutions that provide traditional checking and savings accounts for individuals and business. They also provide loans. Both Banks & Credit Unions are examples. A) Depository Institution. B) The Stock Market. C) Check Cashing Company. D) Payday Lenders. Show Answer Correct Answer: A) Depository Institution. 24. What is paying for something with money that you borrow and must pay back, usually with interest? A) Credit. B) Interest. C) Lend. D) Income. Show Answer Correct Answer: A) Credit. 25. Payment transactions that can be completed with no physical connection between the payment device and the physical point of sale terminal or store clerk A) Credit union. B) Debit card. C) Contactless payment. D) Depository institutions. Show Answer Correct Answer: C) Contactless payment. 26. You have a tax-deferred retirement account. At what age can you start withdrawing money? A) At any age. B) 59 1/2. C) 62. D) 65. Show Answer Correct Answer: B) 59 1/2. 27. A loan where an asset stands good for the loan and is not based off of the borrower's creditworthiness is a: A) Cash Loan. B) Mortgage Loan. C) Car Loan. D) Collateralized Loan. Show Answer Correct Answer: D) Collateralized Loan. 28. A summary of all deposits, charges, and withdrawals sent to you monthly. A) Statement. B) Debit card. C) Endorse. D) Overdrawn. Show Answer Correct Answer: A) Statement. 29. What is function banker to the bank? A) Financial institution. B) Management of banking system. C) Management of government accounts. D) Lender of last resort. Show Answer Correct Answer: D) Lender of last resort. 30. Bank that receives its charter from the star in which it operates A) Account. B) State-chartered bank. C) Service. D) None of above. Show Answer Correct Answer: B) State-chartered bank. ← 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 8Banking And Financial Institutions Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books