This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking And Financial Institutions > Banking And Financial Institutions – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking And Financial Institutions Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How can I protect myself from identity theft? A) Give my confidential info to my friends and family. B) Keep all my confidential information to myself. C) Install anti-virus software from my computer. D) Write down my confidential information on my twitter bio. Show Answer Correct Answer: B) Keep all my confidential information to myself. 2. This is money that has value because the substance it is made of has value like gold and silver. A) Commodity money. B) Characteristics of money. C) Representative money. D) Fiat money. Show Answer Correct Answer: A) Commodity money. 3. Writing only your name on the back of a check is called which type of endorsement? A) Plain Endorsement. B) Restrictive Endorsement. C) Blank Endorsement. D) Special Endorsement. Show Answer Correct Answer: C) Blank Endorsement. 4. Investing is best for ..... A) Long-term financial goals, like paying for retirement. B) Short-term financial goals, like building an emergency fund. C) Earning a little interest while keeping your money safe. D) Guaranteed fast growth on your money. Show Answer Correct Answer: A) Long-term financial goals, like paying for retirement. 5. Daycare can be very expensive! My friend pays $ 972 every month for her 3 year old daughter. This is considered a A) Variable Expense. B) Discretionary Expense. C) Fixed Expense. D) Income. Show Answer Correct Answer: C) Fixed Expense. 6. Which of the following statements about investing is TRUE? A) Investing is best for short-term financial goals. B) On average, putting money in a savings account earns a higher return than investing money in the stockmarket. C) Investing is riskier than putting money in a savings accounts. D) Investing is a guaranteed way to make money. Show Answer Correct Answer: C) Investing is riskier than putting money in a savings accounts. 7. To have a ..... at the end of the month, I have to make sure I don't spend more than I earn and have some money to save at the end of the month. A) Savings. B) Expense. C) Balanced Budget. D) Income. Show Answer Correct Answer: C) Balanced Budget. 8. Which of the following are examples of types of savings vehicles? A) Certificate of Deposit (CD). B) Money Market Account. C) Savings Account. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. Examples of these types of banks are Wells Fargo, Chase, and Bank of America. A) Commercial banks. B) Credit unions. C) Charters. D) Savings and loans. Show Answer Correct Answer: A) Commercial banks. 10. Lead of merchant banker should advice the issuer to enter into ..... intermediary for the purpose of issue management. A) Agreement. B) Arrangement. C) Memorandam of association. D) None of above. Show Answer Correct Answer: C) Memorandam of association. 11. Your PIN should be A) An easy to remember number like your birthday. B) Written down somewhere so you don't forget. C) A unique number known only to you. D) The same as the last 4 digits of your phone number. Show Answer Correct Answer: C) A unique number known only to you. 12. Janet inherited a valuable necklace and needs a safe place to keep it when she isn't wearing it, A) Checking account. B) Savings account. C) Safe deposit box. D) None of above. Show Answer Correct Answer: C) Safe deposit box. 13. When I use my debit card at the store, the money is automatically taken out of my ..... account. A) Inflation. B) Savings. C) Withdraw. D) Checking. Show Answer Correct Answer: D) Checking. 14. Service offered by most banks and credit unions that requires a Personal Identification Number (PIN) to check account balances, make cash withdrawals and deposits, and move money from one account to another. A) Electronic funds tranfer. B) Automated teller machine. C) Electronic financial transitioning. D) Remote check deposit. Show Answer Correct Answer: B) Automated teller machine. 15. The law that allows for electronic images of checks to be transmitted for processing in place of paper checks is ..... A) Truth in Lending. B) Rule of 72. C) Check 21. D) Going Green Act. Show Answer Correct Answer: C) Check 21. 16. Taking more money out of your account than is available is called? A) Deposit. B) Withdraw. C) Overdraw. D) Balance. Show Answer Correct Answer: C) Overdraw. 17. The standard amount of insurance per customer account provided by the FDIC is: A) $ 100, 000. B) $ 1, 000, 000. C) $ 250, 000. D) $ 500, 000. Show Answer Correct Answer: C) $ 250, 000. 18. The Federal Deposit Insurance Corporation (FDIC) insures depositors against losing their money in the case of a ..... A) Lost debit card. B) Death in the family. C) Bank failure. D) Stolen paycheck. Show Answer Correct Answer: C) Bank failure. 19. Why does the bank go through account verification? A) They need to make sure you are who you say you are. B) They want to see if you can be patient. C) To make you wait. D) They don't like you. Show Answer Correct Answer: A) They need to make sure you are who you say you are. 20. A user-owned, not-for-profit, cooperative financial institution is called a A) Credit union. B) Mutual savings bank. C) Savings and loan association. D) Commercial bank. Show Answer Correct Answer: A) Credit union. 21. Deposits which are payable after the expiry of a fixed period are called- A) Time deposits. B) . C) NONE. D) None of above. Show Answer Correct Answer: A) Time deposits. 22. A common financial service used by many consumers. They can help to manage money and make paying bills more convenient. A) PIN. B) Checking Account. C) Reconciling. D) Check. Show Answer Correct Answer: B) Checking Account. 23. What is the meaning of collateral? A) The legal status of the borrower. B) The financial worth or accumulated wealth of the borrower. C) Assets which the borrower uses to pledge as security against the loan. D) Associated with the quality in the borrower. Show Answer Correct Answer: C) Assets which the borrower uses to pledge as security against the loan. 24. What should you do before you approach an ATM? A) Make sure it is hidden so no one will see you withdraw money. B) Share a picture of your debit card with your friends. C) Ask someone nearby for help using the ATM. D) Check for any suspicious people lurking nearby. Show Answer Correct Answer: D) Check for any suspicious people lurking nearby. 25. All of the following are good check-writing habits EXCEPT A) Write checks in ink. B) Void checks on which you make errors. C) Always fill in the amount. D) Postdate all checks. Show Answer Correct Answer: D) Postdate all checks. 26. Which of the following is TRUE about checking accounts? A) It is illegal not to have a checking account. B) Banks can change the fee policies as long as they put the changes in writing and notify you. C) Banks cannot change fee policies, once you sign up you are locked in for life. D) Checking accounts are a great way to earn interest. Show Answer Correct Answer: B) Banks can change the fee policies as long as they put the changes in writing and notify you. 27. A prearranged amount of credit that is available for a business to use as needed is a ..... A) Line of credit. B) Bond. C) Letter of credit. D) Treasury note. Show Answer Correct Answer: A) Line of credit. 28. What is the gold standard? A) One unit of currency is equal to a set amount of gold. B) The level by which gold is judged. C) The idea that gold can buy everything. D) The use of gold as a medium of exchange. Show Answer Correct Answer: A) One unit of currency is equal to a set amount of gold. 29. The item most likely to be stored in a safe-deposit box are A) Cash. B) Bonds and stock certificates. C) Checkbooks. D) Deposit slips for a savings account. Show Answer Correct Answer: B) Bonds and stock certificates. 30. You will need a PIN to use a(n) ..... A) Checking account. B) NOW account. C) Personal check. D) Debit card. Show Answer Correct Answer: D) Debit card. ← 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books