Quiz: Principles Of Business And Personal Finance In Banking
Principles of Business and Personal Finance objective on banking.
- 1.When the Federal Reserve lowers the discount rate to encourage borrowing by member banks, it is exercising which role/responsibility?
- A.
Clearing checks between banks in different cities
- B.
Discounting currency of member banks
- C.
Participating in open market operations
- D.
Supervising banks
- 2.Holding reserve deposits for its member banks is an example of which role/responsibility of the Federal Reserve?
- A.
Clearing checks between banks in different cities
- B.
Discounting currency of member banks
- C.
Participating in open market operations
- D.
Supervising banks
- 3.What is NOT a way that The Federal Reserve supervises banks?
- A.
Accepts deposits of member banks
- B.
Approves bank mergers
- C.
Inspects banks yearly
- D.
Lends money to individual consumers
- 4.The paper currency supplied by the Federal Reserve is called:
- 5.All national banks are required to join the:
- 6.Federal Reserve Notes are printed by the Bureau of:
- A.
Federal District Banks
- B.
Federal Reserve
- C.
Investigations
- D.
Printing and Engraving
- 7.A lower discount rate will:
- A.
Decrease competition among customers
- B.
Decrease funds available to customers
- C.
Increase funds available to customers
- D.
Increase funds available to banks
- 8.Electronic Funds Transfer assists customers with money management by:
- A.
Allowing withdrawals to be made at any time for impulse buying
- B.
Providing for automatic deposits and payments
- C.
Reconciling the bank statement for the consumer
- D.
Totally eliminating the need for cash
- 9.The commercial bank service that assists consumers by managing investments on behalf of the young and elderly is:
- 10.The banking service that assists consumers with money management by providing a record of expenses is:
- 11.Checking accounts provided by commercial banks do NOT assist consumers in managing money by:
- A.
Allowing for unlimited withdrawals
- B.
Providing a record of expenses
- C.
Providing proof of payment
- D.
Providing safe transter of funds
- 12.Commercial bank services that assist a consumer in planning for future needs do NOT include:
- A.
Accepting deposits
- B.
Automatic teller machines
- C.
Automatic transfer to savings account
- D.
Investment services
- 13.What is NOT true of technological advances in banking?
- A.
Automatic teller machines are not used widely
- B.
Customer records are always up-to-date
- C.
Customers can get fast or instant loan approval
- D.
Customers with direct deposit do not have to go to the bank to deposit checks
- 14.A DISADVANTAGE of banking at home is:
- A.
Customers can make transactions at any time
- B.
Customers have access to information at all times
- C.
Security of customer accounts can be a problem
- D.
Transactions are very time consuming
- 15.The banking technology that allows funds to move electronically from one account or bank to another is:
- 16.Automatic Teller Machines (ATMs) CANNOT:
- A.
Charge fees for service
- B.
Eliminate the need for banks
- C.
Provide customers with 24-hour service
- D.
Transfer funds electronically
- 17.Which is a DISADVANTAGE of on-line banking?
- A.
Account security can be a problem
- B.
Customer can bank when it is convenient
- C.
Customers can bank from a bank of their choice
- D.
Customers cannot get assistance from the bank
- 18.The automated clearing house uses which technology?
- A.
Automated teller machines (ATM)
- B.
Electronic funds transfer (EFT)
- C.
Optical character readers (OCR)
- D.
Point of sale terminals (POS)
- 19.Juanita keeps a balance over $1,500 in her cheking account. She is interested in a credit/debit card and would like to earn interest on her account. What typeof checking account would be best for Juanita?
- A.
Basic
- B.
NOW
- C.
Regular
- D.
Super NOW
- 20.Manuel only writes a few check each month, and only maintains a balance of $300. What type of checking account would be best for Manuel?
- A.
Basic
- B.
NOW
- C.
Regular
- D.
Super NOW
Related Topics
Recent Quizzes
Featured Quizzes
Popular Topics
Back to top