Banking Exam Mock Test: Quiz!
-
Your take-home pay, or net income, is:
-
The amount you receive after benefits, such as vacation pay and health insurance, have been added.
-
The amount you receive after taxes, insurance, or other costs have been subtracted.
-
The total amount you earn.
-
If you are on your journey to becoming a banker, then the quiz below is perfect for you. It has most of the questions that you may get when it comes to the banking exam. Give it a shot and see if you are ready to hit someone with some complex banking knowledge.
.jpg "Banking Exam Mock Test: Quiz! - Quiz")
Quiz Preview
- 2.
The amount of interest you earn on money in your savings account will depend a lot on which three factors?
-
The interest rate, how often you make deposits, and how the financial institution invests your money.
-
The interest rate, how long you keep the money in your account, and how the financia institution pays the interest.
-
The prime rate, your credit rating, and how you make the deposits (cash, check, or direct deposit).
Correct Answer
A. The interest rate, how long you keep the money in your account, and how the financia institution pays the interest.Explanation
The correct answer is the interest rate, how long you keep the money in your account, and how the financial institution pays the interest. The interest rate is a crucial factor as it determines the percentage of interest you will earn on your savings. The longer you keep your money in the account, the more interest you will accumulate. Additionally, the way the financial institution pays the interest, whether it is compounded or simple interest, will also impact the amount you earn.Rate this question:
-
- 3.
All of the following are good ways to establish a good credit record except:
-
Don't write a check for more money than you have in your account.
-
Pay your bills in full and on time.
-
Use your credit card to buy something you can't really afford.
-
Always keep your promises to repay the money you borrow.
Correct Answer
A. Use your credit card to buy something you can't really afford.Explanation
Establishing a good credit record involves responsible financial behavior, such as not writing checks for more than the available balance, paying bills on time and in full, and keeping promises to repay borrowed money. However, using a credit card to buy something that is beyond one's affordability can lead to accumulating debt and difficulty in making timely payments, which can negatively impact the credit record. Therefore, using a credit card to buy something you can't really afford is not a good way to establish a good credit record.Rate this question:
-
- 4.
Charging on a credit card is essentially taking out a loan.
-
True
-
False
Correct Answer
A. TrueExplanation
Charging on a credit card is essentially taking out a loan because when a person makes a purchase using a credit card, they are borrowing money from the credit card company. The credit card company pays for the purchase on behalf of the cardholder, and then the cardholder is required to repay the amount borrowed, usually with interest. This is similar to taking out a loan where the borrower receives funds upfront and then repays the lender over time.Rate this question:
-
- 5.
Companies that keep track of everyone's credit history are called:
-
Big Brother
-
Collection Agencies
-
Credit Unions
-
Credit Bureaus
Correct Answer
A. Credit BureausExplanation
Credit bureaus are companies that keep track of everyone's credit history. They collect and maintain information about individuals' borrowing and repayment activities, including credit cards, loans, and mortgages. This information is used by lenders, such as banks and credit card companies, to assess an individual's creditworthiness and determine whether to approve or deny credit applications. Credit bureaus play a crucial role in the financial industry by providing accurate and up-to-date credit information to help lenders make informed decisions.Rate this question:
-
- 6.
Which one of the following statements is true about a credit card's "minimum payment"?
-
It is all you ever have to pay.
-
Minimum payments are really just a guideline and it's okay to pay less, but only once in awhile.
-
It is the minimum to keep your account in good standing. You should always pay the minimum, but it's much better to pay the entire balance if possible; that will also hep you avoid interest charges, too.
Correct Answer
A. It is the minimum to keep your account in good standing. You should always pay the minimum, but it's much better to pay the entire balance if possible; that will also hep you avoid interest charges, too.Explanation
The correct answer is that the minimum payment is the minimum amount required to keep your account in good standing. While it is important to always pay at least the minimum, it is even better to pay the entire balance if possible. Paying the entire balance helps to avoid interest charges and is more beneficial for managing credit card debt.Rate this question:
-
- 7.
A good general guideline is to avoid having credit card debt that exceeds:
-
10% of your monthly net income
-
The amount of your school loans
-
The amount you save on a monthl basis
-
20% of your monthly gross income
Correct Answer
A. 20% of your monthly gross incomeExplanation
The correct answer is 20% of your monthly gross income. This is because it is generally recommended to keep your credit card debt below this threshold to maintain a healthy financial situation. Having a high amount of credit card debt can lead to financial stress and difficulty in making timely payments. By limiting your credit card debt to 20% of your monthly gross income, you can ensure that you have enough income to cover your expenses and save for the future.Rate this question:
-
- 8.
What's the significance of being pre-approved for a loan?
-
You'll get higher interest rates.
-
You'll know the amount that will be available to you to make the purchase.
-
You'll get a longer term for payment.
-
You won't need a down payment.
Correct Answer
A. You'll know the amount that will be available to you to make the purchase.Explanation
Being pre-approved for a loan is significant because it allows you to know the amount that will be available to you to make a purchase. This information is crucial as it helps you determine your budget and make informed decisions about what you can afford. It saves you time and effort by narrowing down your options to properties or items that fall within your pre-approved loan amount. Additionally, it gives you a sense of confidence and bargaining power when negotiating with sellers, as you have already secured financing.Rate this question:
-
- 9.
What is APR?
-
A way to estimate the time or interest rate you would need to double your money on an investment.
-
A type of credit that is repaid to the lender in equal amounts, over a fixed period of time.
-
A measurement used to compare different loans, that takes into account the interest rate, term, and fees to illustrate the total cost of the loan.
Correct Answer
A. A measurement used to compare different loans, that takes into account the interest rate, term, and fees to illustrate the total cost of the loan.Explanation
APR stands for Annual Percentage Rate. It is a measurement used to compare different loans, taking into account the interest rate, term, and fees associated with the loan. It provides a more accurate representation of the total cost of the loan, allowing borrowers to make informed decisions when comparing loan options. The APR includes both the interest rate and any additional costs, giving borrowers a clearer understanding of the overall financial implications of the loan.Rate this question:
-
- 10.
A good general guideline is to not borrow more than _____ percent of your annual net income.
-
10
-
20
-
30
-
40
Correct Answer
A. 20Explanation
A good general guideline is to not borrow more than 20 percent of your annual net income. This means that you should not take on debt that exceeds 20 percent of the amount of money you earn after taxes and other deductions. This guideline helps to ensure that you do not become overwhelmed by debt and are able to manage your financial obligations effectively. It is important to borrow responsibly and only take on debt that you can comfortably repay.Rate this question:
-
Quiz Review Timeline (Updated): Mar 21, 2023 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Aug 17, 2013Quiz Created by
Amaress
Back to top