Banking Test

45 Questions

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Banking Quizzes & Trivia

Questions and Answers
  • 1. 
    Which of the following is NOT a banking service? 
    • A. 

      Electronic Funds Transfer

    • B. 

      Safe Deposit Boxes

    • C. 

      Stop Payment Orders

    • D. 

      Discretionary Funds

  • 2. 
    What is the limit for FDIC insurance on a single account?
    • A. 

      $100,000.00

    • B. 

      $150,000.00

    • C. 

      $200,000.00

    • D. 

      $250,000.00

    • E. 

      $300,000.00

  • 3. 
    A PIN on a debit card is a
    • A. 

      Passbook interest number

    • B. 

      Personal insurance number

    • C. 

      Personal identification number

    • D. 

      Passbook insurance number

    • E. 

      There isn't a PIN number on a debit card

  • 4. 
    What type of account is a mix between a savings and checking account?
    • A. 

      Share draft account

    • B. 

      Standard account

    • C. 

      Interest account

    • D. 

      Special account

  • 5. 
    Which of the following assets is most liquid?  
    • A. 

      A checking account

    • B. 

      A savings account

    • C. 

      A certificate of deposit

    • D. 

      The above three are equally liquid.

  • 6. 
    Which of the following is not a characteristic of certificate of deposit (CDs)?  
    • A. 

      You pay a penalty for early redemption.

    • B. 

      You "lock in" (are guaranteed) the stated interest if you hold the CD until maturity.

    • C. 

      They are preferred over money market deposits if you expect interest rates to fall

    • D. 

      They have a minimum maturity of three years.

  • 7. 
    Monica Basidtes received a check and endorsed it by simply signing her name on the reverse e of the check. This is called  
    • A. 

      A special endorsement

    • B. 

      A deposit endorsement.

    • C. 

      A restrictive endorsement.

    • D. 

      A blank endorsement.

  • 8. 
    John issued a check to Mary who signed it as a blank endorsement. Mary lost the check. If someone finds it, he/she could  
    • A. 

      Sign his/her name under Monica's and cash the check.

    • B. 

      Write "for deposit only" under Monica's signature and deposit it to his/her account.

    • C. 

      Do nothing; the check must be made payable to him/her before it can be cashed.

    • D. 

      Do nothing; since he or she is neither a payer or payee.

  • 9. 
    Which of the following statements is true concerning overdrafts?  
    • A. 

      An effective way to prevent them is to "overload" the account.

    • B. 

      They can be avoided by arranging an automatic transfer from a savings account.

    • C. 

      They are inexpensive nuisances because banks usually do not charge for overdrafts.

    • D. 

      They differ from "bounced checks" in that "bouncing" a check is a mistake while an overdraft is deliberate.

  • 10. 
    If you discover that someone has stolen your checks, you should  
    • A. 

      Issue an immediate stop payment for each check.

    • B. 

      Purchase account insurance to avoid potential losses.

    • C. 

      Inform the bank and open a new account.

    • D. 

      Do nothing.

  • 11. 
    A bank is one of the safest places to put your money.
    • A. 

      True

    • B. 

      False

  • 12. 
    Which of the following will likely pay the highest rate of interest?
    • A. 

      Checking account

    • B. 

      Passbook savings account

    • C. 

      Certificate of deposit

    • D. 

      All of the above will pay the same amount of interest

  • 13. 
    Money order is guaranteed by bank to be valid up to the amount printed on it.
    • A. 

      True

    • B. 

      False

  • 14. 
    Money orders are easy to duplicate, therefore, teller should pay careful attention especially to maximum amount printed on the money order.
    • A. 

      True

    • B. 

      False

  • 15. 
    When would a customer typically need cashier's check?
    • A. 

      When he/she is in immediate need of sizable cash.

    • B. 

      When he/she needs guaranteed funds (e.g., home closing).

    • C. 

      When he/she does not know which exact amount he/she will need.

  • 16. 
    What is the advantage of "automatic deduction'' as one of the main types of payment forms?
    • A. 

      Customer does not need to authorize any deduction from the account as it happens automatically.

    • B. 

      Customer will not be late with check as the payment is automatically taken out of bank account.

    • C. 

      Customer does not receive any payment reminders.

  • 17. 
    What is the extra feature of a debit card that ATM card does not have?
    • A. 

      Debit card can be used for purchases.

    • B. 

      The amount of purchase is not directly deducted from customer’s checking account, but bills monthly.

    • C. 

      There is no extra feature. Both cards have the same functions.

  • 18. 
    What is a "Check register"?
    • A. 

      A book that you write in.

    • B. 

      A way to sign up for a magazine subscription.

    • C. 

      A paper form used to keep track of the checks written.

  • 19. 
    What of the following apply for a  "Check"?
    • A. 

      A written order instructing the bank to pay money to someone.

    • B. 

      It must have a date, amount and signature.

    • C. 

      It must be filled out in pen, with no empty spaces.

    • D. 

      All of the above.

  • 20. 
    What is money?
    • A. 

      Currency used as an accepted way of exchange. We all agree it has value.

    • B. 

      Something you use as wallpaper.

    • C. 

      Shells, cows, etc. Things traded for something else.

  • 21. 
    What is a "Savings Account"?
    • A. 

      An account that gives you free money.

    • B. 

      A bank account you put money into for future large purchases.

    • C. 

      An account that looks like a pig.

  • 22. 
    What is a "Balance"?
    • A. 

      When you stand on one foot.

    • B. 

      The money you won with a Lottery card.

    • C. 

      The exact amount of money in an account.

  • 23. 
    Checking/Savings accounts. Can access your money from an ATM or by writing up to 3 checks a month.
    • A. 

      Certificate of Deposits

    • B. 

      Money-Market Deposit Accounts

    • C. 

      Statement Accounts

    • D. 

      None of the above

  • 24. 
    Banks pays a fixed amount of interest, on a fixed amount of money, for a fixed amount of time.
    • A. 

      Passbook Account

    • B. 

      Statement Account

    • C. 

      Certificate of Deposit

    • D. 

      None of the above

  • 25. 
    • A. 

      Risk, Availability of funds, Rate stability of return, investing

    • B. 

      Risk, Availability of funds, Rate stability of return, savings

    • C. 

      Risk, Availability of funds, Rate stability of return, Protection against inflation

    • D. 

      None of the above

  • 26. 
    A certificate of deposit must be held for a set amount of time.
    • A. 

      False

    • B. 

      True

  • 27. 
    Credit Card is
    • A. 

      The electronic transfer of a payment (for a month's salary, for example) directly form the payer's account to the recipient's account

    • B. 

      A small, specially coded plastic card issued by a bank, business, etc., authorizing the cardholder to purchase goods or services on credit

    • C. 

      A savings account that generally earns higher rates than regular savings accounts and limits you to no more than a total of six automatic or preauthorize transfers, telephone transfers or payment from a savings account each monthly statement cycle.

    • D. 

      A form (usually located in the back of a checkbook) on which users of checking accounts may record checks they have written and deposits they have made. Information thus recorded helps people to keep track of balances in their accounts

    • E. 

      Written order directing a bank or credit union to pay a person or business a specific sum of money.

  • 28. 
    Money Market Account is
    • A. 

      The electronic transfer of a payment (for a month's salary, for example) directly form the payer's account to the recipient's account

    • B. 

      A small, specially coded plastic card issued by a bank, business, etc., authorizing the cardholder to purchase goods or services on credit

    • C. 

      A savings account that generally earns higher rates than regular savings accounts and limits you to no more than a total of six automatic or preauthorize transfers, telephone transfers or payment from a savings account each monthly statement cycle.

    • D. 

      A form (usually located in the back of a checkbook) on which users of checking accounts may record checks they have written and deposits they have made. Information thus recorded helps people to keep track of balances in their accounts

    • E. 

      Written order directing a bank or credit union to pay a person or business a specific sum of money.

  • 29. 
    Check is
    • A. 

      The electronic transfer of a payment (for a month's salary, for example) directly form the payer's account to the recipient's account

    • B. 

      A small, specially coded plastic card issued by a bank, business, etc., authorizing the cardholder to purchase goods or services on credit

    • C. 

      A savings account that generally earns higher rates than regular savings accounts and limits you to no more than a total of six automatic or preauthorize transfers, telephone transfers or payment from a savings account each monthly statement cycle.

    • D. 

      A form (usually located in the back of a checkbook) on which users of checking accounts may record checks they have written and deposits they have made. Information thus recorded helps people to keep track of balances in their accounts

    • E. 

      Written order directing a bank or credit union to pay a person or business a specific sum of money.

  • 30. 
    Direct Deposit
    • A. 

      The electronic transfer of a payment (for a month's salary, for example) directly form the payer's account to the recipient's account

    • B. 

      A small, specially coded plastic card issued by a bank, business, etc., authorizing the cardholder to purchase goods or services on credit

    • C. 

      A savings account that generally earns higher rates than regular savings accounts and limits you to no more than a total of six automatic or preauthorize transfers, telephone transfers or payment from a savings account each monthly statement cycle.

    • D. 

      A form (usually located in the back of a checkbook) on which users of checking accounts may record checks they have written and deposits they have made. Information thus recorded helps people to keep track of balances in their accounts

    • E. 

      Written order directing a bank or credit union to pay a person or business a specific sum of money.

  • 31. 
    Register is
    • A. 

      The electronic transfer of a payment (for a month's salary, for example) directly form the payer's account to the recipient's account

    • B. 

      A small, specially coded plastic card issued by a bank, business, etc., authorizing the cardholder to purchase goods or services on credit

    • C. 

      A savings account that generally earns higher rates than regular savings accounts and limits you to no more than a total of six automatic or preauthorize transfers, telephone transfers or payment from a savings account each monthly statement cycle.

    • D. 

      A form (usually located in the back of a checkbook) on which users of checking accounts may record checks they have written and deposits they have made. Information thus recorded helps people to keep track of balances in their accounts

    • E. 

      Written order directing a bank or credit union to pay a person or business a specific sum of money.

  • 32. 
    An electronic machine that bank customers and credit union members can use to withdraw cash and make financial transactions
    • A. 

      BANK

    • B. 

      CHECK

    • C. 

      ATM

    • D. 

      DEBT

  • 33. 
    The amount of money owed to lenders
    • A. 

      Debt

    • B. 

      Credit

    • C. 

      Check

    • D. 

      Bank

  • 34. 
    A financial institution that accepts deposits and channels the money into lending activities
    • A. 

      ATM

    • B. 

      DEBT

    • C. 

      CHECK

    • D. 

      BANK

  • 35. 
    A monthly summary providing the status of a depositor's financial accounts 
    • A. 

      Bank

    • B. 

      Bank Statement

    • C. 

      Savings Account

    • D. 

      Endorsement

  • 36. 
    Any transfer of funds initiated by electronic means from an electronic terminal, telephone, computer, ATM or magnetic tape.
    • A. 

      Endorsement

    • B. 

      Certificat of Deposit

    • C. 

      Electronic Funds Transfers

    • D. 

      Bank Statement

  • 37. 
    Blank Endorsement
    • A. 

      When the check has been determined for deposit only

    • B. 

      When only the signature of the person who the check was written to endorses

    • C. 

      When two signatures are on the back of the check

    • D. 

      Answer option 4

  • 38. 
    Special Endorsement
    • A. 

      When the check has been determined for deposit only

    • B. 

      When only the signature of the person who the check was written to endorses

    • C. 

      When two signatures are on the back of the check

    • D. 

      Answer option 4

  • 39. 
    Restrictive Endorsement
    • A. 

      When the check has been determined for deposit only

    • B. 

      When only the signature of the person who the check was written to endorses

    • C. 

      When two signatures are on the back of the check

    • D. 

      Answer option 4

  • 40. 
    Bounced Check → A check that has been paid
    • A. 

      True

    • B. 

      False

  • 41. 
    Debit Card is a bank card that automatically deducts the amount of a purchase from the checking account of the card holder
    • A. 

      True

    • B. 

      False

  • 42. 
    Type question here
    • A. 

      True

    • B. 

      False

  • 43. 
    Checking Account Reconciliation is the act of balancing the check register and bank statement
    • A. 

      True

    • B. 

      False

  • 44. 
    Online Banking is a financial institution that accepts deposits and channels the money into lending activities
    • A. 

      True

    • B. 

      False

  • 45. 
    Personal identification number (PIN) is a certificate issued by a bank to a person depositing money in an account for a specified period of time (often six months, one year, or two years). A fee is charged for early withdrawal from this type of account
    • A. 

      True

    • B. 

      False