Pobpf Obj. 7.0 Banking

20 Questions | Total Attempts: 104

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Banking Quizzes & Trivia

Principles of Business and Personal Finance objective on banking.


Questions and Answers
  • 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