Banking Remediation Quiz

20 Questions

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Banking Quizzes & Trivia

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Questions and Answers
  • 1. 
    Many companies offer ____________, which is an automatic deposit of net pay to an employee's designated bank account. 
    • A. 

      Accounts receivable

    • B. 

      Amortization

    • C. 

      Gross pay

    • D. 

      Direct deposit

  • 2. 
    A debit card allows you to _________
    • A. 

      Protect yourself against overdraft

    • B. 

      Pay for purchases directly from your checking or savings account

    • C. 

      Borrow money for a short period of time

    • D. 

      Spend more money than you have in your account

  • 3. 
    A ___________ is a financial institution that traditionally specialized in savings accounts and mortgage loans but now offers many of the same services offered by commercial banks
    • A. 

      Mutual savings bank

    • B. 

      Savings and loan association

    • C. 

      Credit union

    • D. 

      Life insurance policy company

  • 4. 
    What is money placed in a checking account called?
    • A. 

      Investment deposit

    • B. 

      Checking deposit

    • C. 

      Special deposit

    • D. 

      Demand deposit

  • 5. 
    The calculation for the rate of return is __________
    • A. 

      Total deposit + total interest

    • B. 

      Original deposit X total interest

    • C. 

      Total interest + original withdrawl amount

    • D. 

      Total interest earned + original deposit

  • 6. 
    According to the Truth in savings law, financial institutions have to inform you of all of the following EXCEPT ____________ 
    • A. 

      Interest rate earned

    • B. 

      Number of deposits held in the bank

    • C. 

      Annual percentage rate

    • D. 

      Terms and conditions of the savings plan

  • 7. 
    Overdraft protection is __________  
    • A. 

      The use of a debit card to purchase an item

    • B. 

      An automatic loan made to an account if the balance will not cover the amount written on a check

    • C. 

      The amount of interest that a financial institution would pay on a $100 deposit

    • D. 

      The percentage of increase in the value of savings from earned interest

  • 8. 
    A _________ is a request that a bank or other financial institution "not cash or honor" a specific written check
    • A. 

      Point-of-sale transaction

    • B. 

      Certificate of deposit

    • C. 

      Stop-payment order

    • D. 

      Rate of return

  • 9. 
    Your bank statement will include all of the following EXCEPT __________
    • A. 

      Depoists

    • B. 

      Checks you have written

    • C. 

      Debit card charges

    • D. 

      The number of years you have had the account

  • 10. 
     A _________ is an action taken to check for the differences between a bankstatement and a checkbook balance 
    • A. 

      Collelction of receipts

    • B. 

      Endorsement

    • C. 

      Reconciliation

    • D. 

      Stop-payment order

  • 11. 
    The amount a bank is required to withhold on a customer's deposits on reserve in their vault or on deposit with the central bank represents the _________
    • A. 

      Reserve ratio

    • B. 

      Deposit ratio

    • C. 

      Savings ratio

    • D. 

      Loan-to-value ratio

  • 12. 
    Which type of reserve is associated with the fractional reserve banking system? 
    • A. 

      Required reserves

    • B. 

      Excess reserves

    • C. 

      Neither of these answers

    • D. 

      Both of the answers

  • 13. 
    Money as a medium of exchange BEST represents that money can be used ______ 
    • A. 

      As deferred payment for debts

    • B. 

      To purchase goods and services

    • C. 

      As savings for its anticipated future value

    • D. 

      To represent a nominal value for a building or house

  • 14. 
    Money has 3 functions, they are _________, ___________ and ____________
    • A. 

      IOU, inflation hedge and store of value

    • B. 

      Medium of exchange, inflation hedge and store of value

    • C. 

      Medium of exchange, unit of account and IOU

    • D. 

      Medium of exchange, unit of account and store of value

  • 15. 
    The primary function of a bank is to ________________
    • A. 

      Control the money supply

    • B. 

      Provide notes and coins for trade

    • C. 

      Make a profit

    • D. 

      Provide a check clearing system

  • 16. 
    Banks create money by ____________
    • A. 

      Printing it

    • B. 

      Issuing debit cards

    • C. 

      Accepting checks

    • D. 

      Lending out part of its deposits

  • 17. 
    Money supply is _________________
    • A. 

      The bank of B, B & T

    • B. 

      Money + bank cards + credit cards

    • C. 

      Checks + money + credit cards + bank cards

    • D. 

      Currency in circulation plus bank deposits

  • 18. 
    If banks and the private sector decide to hold less cash, the money multiplier will be ______
    • A. 

      Unchanged

    • B. 

      Larger

    • C. 

      Smaller

    • D. 

      Unstable

  • 19. 
    Three variables affect the demand for money; they are ___________, ___________ and __________
    • A. 

      Bank opening hours, the proportion of weekly paid employees and interest rates

    • B. 

      Price level, interest rates and real income

    • C. 

      Time of year, bank opening hours and price level

    • D. 

      The proportion of weekly paid employees, time of year and real income

  • 20. 
    If I keep some money available in case I see a bargain, this is an example of __________ 
    • A. 

      Asset demand for money

    • B. 

      Transaction demand for money

    • C. 

      Token demand for money

    • D. 

      Precautionary demand for money