FBLA: Banking & Financial Systems

Many recent bank closings can be tied to:

• credit default swaps
• competition and recent laws governing banks
• the recession
• unethical practices and greed

What is another name for the rate of the return on a savings account?

• yield
• equity
• liquidity
• compounding

What is the first sale of a common stock to the public called?

• IPO
• call
• debenture 
• secondary market

What do actuaries do? 

• evaluate the likelihood of present events
• evaluate assets and liabilities
• evaluate the likelihood of future events
• actually evaluate accounting statements

What's the best action to take after an interview? 

• evaluate how you did and send a thank you note
• write down all the questions you were asked in case you're asked again
• tell the other interviewees about what went right or wrong 
• email the interviewer to find out when they are going to hire

When is revenue recorded? 

• contract talks reach a successful ending
• when sales or services take place 
• cash is received from the customer
• at the end of a quarter when financial statements need to be prepared

The Board of Governors are: 

• elected by the presidents of the Federal Reserve Banks and serve six-year terms
• representative governors from states that have Federal Reserve Banks and serve for four years 
• appointed by the president and confirmed by the Senate for 14 year terms
• the Presidents of the Federal Reserve Banks 

EFT is an acronym for

• electronic funds transit
• electronic funds transfer
•  electronic funds transmitter
• electronic financial transfer

If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?

• Income tax may be charged on your interest depending on your income. 
• Your interest would not be credited to your account until you turn 18.
• Sales tax may be charged on the interest that you earn.
• Earnings from saving account interest may not be taxed.

What is the primary goal of insurance?

• to protect the insurance companies from losses from natural disasters 
• to aid the government in setting fiscal policy for losses and premiums 
• to allocate the risks of loss from the individual to a great number of people 
• to make sure that when you have insurance you are always covered for all losses