Six-Weeks Test (5th Form)

A financial institution that provides a range of financial services to individuals and business clients, is referred to as a

All of the following are roles of the financial institution EXCEPT:

• Commercial bank accepts money deposits and therefore provides a safe place for saving

  money.

• Offering loans and overdraft to persons who need financial assistance.

• They also offer investment opportunities such as mutual funds, annuities and stocks and

  bonds

• Selling stale dated cheques.

A safety deposit box at the bank given to individuals for storing highly valuable items is a ____________ offered by financial institutions.

Which of the following is a function of the central bank?

• A. The Central Bank has the sole authority to issue notes and coins.

• B. Offering settlement services such as authorizing credit card payments

• C. It manages the national debt.

• A & C

Which of the following is NOT an asset to a business?

• factory buildings

• taxes to be paid to the government

• inventory

• money in the bank

A plan for systematic saving and spending is referred to as

• trading

• investing

• financing

• budgeting

On which of the following bank accounts is a service fee discharged?

• Current

• Savings

• Term deposit

• Fixed deposit

Which of the following is a function of a commercial bank?

• Refusal of deposits

• Barring of long-term financing

• Making the various currencies

• Lending of depositors' funds

A _______ _______ can only be paid into a bank account.

• bearer cheque

• crossed cheque

• open cheque

• order cheque

A/an ________ ________ can be cashed over the counter and can be cashed by the wrong person

• crossed cheque

• bearer cheque

• order cheque

• open cheque