Banking Quiz: Trivia Exam! Ultimate Questions

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Banking Quiz: Trivia Exam! Ultimate Questions - Quiz

Below are some Banking quiz trivia exam ultimate questions. One of the safest places to put your money instead of carrying cash everywhere is the bank. There exists different account which a person may opt to put their money and each of them has their own allure. Do you know the different between a debit and credit-card or different types of loans available to someone? Take up the questions and see how informed you are on banks.


Questions and Answers
  • 1. 

    Which banks do not accept deposits?

    • A.

      Commercial banks

    • B.

      Retail Banks

    • C.

      Investment banks

    • D.

      None of the above

    Correct Answer
    C. Investment banks
    Explanation
    Investment banks do not accept deposits. Unlike commercial banks and retail banks, which offer various types of deposit accounts, investment banks primarily focus on providing financial services such as underwriting securities, facilitating mergers and acquisitions, and advising clients on investment strategies. Therefore, investment banks do not have the function of accepting deposits from individuals or businesses.

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  • 2. 

    What is the average rate on savings accounts?

    • A.

      5 percent

    • B.

      1-3 percent

    • C.

      0.5 percent

    • D.

      10 percent

    Correct Answer
    B. 1-3 percent
    Explanation
    The average rate on savings accounts is typically between 1-3 percent. This means that on average, individuals can expect to earn an annual interest rate of 1-3 percent on the money they have saved in their savings accounts. This rate may vary depending on the specific bank and the current economic conditions.

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  • 3. 

    A credit report is

    • A.

      A list of your financial assets and liabilities

    • B.

      Your monthly credit-card statement

    • C.

      A loan and bill payment history

    • D.

      Your credit line with your financial institution

    Correct Answer
    C. A loan and bill payment history
    Explanation
    A credit report is a detailed record of an individual's borrowing and repayment activities. It includes information about loans taken out and bills paid, providing a history of how responsible the individual has been in managing their debts. This report is used by lenders and financial institutions to assess a person's creditworthiness and determine whether they are likely to repay their debts in a timely manner. It does not include information about financial assets and liabilities or monthly credit-card statements, as those are separate aspects of an individual's financial situation.

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  • 4. 

    Which type of account offers the highest returns?

    • A.

      A savings account

    • B.

      Basic account

    • C.

      A money market account

    • D.

      All of the above

    Correct Answer
    C. A money market account
    Explanation
    A money market account offers the highest returns compared to a savings account and a basic account. Money market accounts typically have higher interest rates and may offer additional benefits such as check-writing privileges. These accounts are designed for individuals who want to earn a higher return on their savings while still maintaining some liquidity and access to their funds.

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  • 5. 

    Which of the following is NOT a commonly used term in the context of Banking?

    • A.

      Investment banking

    • B.

      Corporate banking

    • C.

      Retail banking

    • D.

      Social banking

    Correct Answer
    D. Social banking
    Explanation
    Social banking is not a commonly used term in the context of banking. Investment banking, corporate banking, and retail banking are all well-known and widely used terms in the banking industry. Social banking, on the other hand, refers to a banking approach that focuses on social and environmental objectives, such as providing financial services to disadvantaged individuals or supporting sustainable development. While it is a valid concept, it is not as commonly used or recognized as the other three terms in the context of traditional banking.

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  • 6. 

    Which of the following maybe the reason for returning a check?

    • A.

      All of the listed options

    • B.

      Insufficient funds

    • C.

      Improper Details

    • D.

      Signature not clear

    Correct Answer
    A. All of the listed options
    Explanation
    The reason for returning a check could be any of the listed options. If there are insufficient funds in the account, the check will be returned. Similarly, if the details provided on the check are improper or the signature is not clear, the check may also be returned. Therefore, all of the listed options are potential reasons for returning a check.

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  • 7. 

    Retail Banking means 

    • A.

      Whole sale Banking

    • B.

      Banking for Individuals

    • C.

      Banking for Corporates

    • D.

      Retail Outlets

    Correct Answer
    B. Banking for Individuals
    Explanation
    Retail banking refers to banking services provided to individual customers, such as personal accounts, loans, credit cards, and other financial products and services tailored for individuals. It focuses on meeting the financial needs of individual consumers rather than businesses or corporations. This type of banking typically includes services like savings accounts, checking accounts, mortgages, and consumer loans. Retail banking aims to provide convenient and accessible banking services to individuals for their personal financial management.

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  • 8. 

    What is a mutual fund?

    • A.

      A pool of funds used to purchase securities on behalf of investors

    • B.

      All of the listed options

    • C.

      A portfolio of stocks, bonds and other securities

    • D.

      A collective investment vehicle

    Correct Answer
    B. All of the listed options
    Explanation
    A mutual fund is an investment vehicle that pools money from multiple investors to purchase a diversified portfolio of securities, which can include stocks, bonds, and other assets. This allows individual investors to access a wide range of investments that they may not be able to afford or manage on their own. Therefore, the correct answer is "All of the listed options" because a mutual fund is indeed a pool of funds used to purchase securities on behalf of investors, a portfolio of stocks, bonds, and other securities, and a collective investment vehicle.

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  • 9. 

    What is the central bank in the United States called?

    • A.

      Federal Reserve

    • B.

      Federal Reserve Board

    • C.

      Reserve Bank of America

    • D.

      Bank of America

    Correct Answer
    A. Federal Reserve
    Explanation
    The central bank in the United States is called the Federal Reserve. It is responsible for conducting monetary policy, regulating and supervising banks, and maintaining the stability of the financial system. The Federal Reserve plays a crucial role in controlling inflation, promoting economic growth, and ensuring the stability of the US dollar.

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  • 10. 

    Which of the following is not a secured loan?

    • A.

      Equity Loans

    • B.

      Secured Loans with Savings

    • C.

      Equity Lines of Credit

    • D.

      Personal Loans

    Correct Answer
    D. Personal Loans
    Explanation
    Personal loans are not secured loans because they do not require collateral. In contrast, equity loans, secured loans with savings, and equity lines of credit all involve using assets as collateral to secure the loan. Personal loans are typically unsecured and based on the borrower's creditworthiness.

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