FBLA Banking & Finance Test

What is the primary function of a bank?

• Issuing credit cards

• Accepting deposits

• Selling insurance

• Providing legal advice

What does the term "APR" stand for?

• Annual Payment Rate

• Average Personal Return

• Annual Percentage Rate

• Asset Protection Ratio

What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?

• To regulate interest rates

• To insure deposits in banks

• To manage the national debt

• To provide loans to small businesses

What does the acronym "IRA" stand for in finance?

• Individual Retirement Account

• International Revenue Allocation

• Investment Regulatory Agency

• Internal Revenue Assessment

Which of the following is NOT a type of financial institution?

• Credit Union

• Mutual Fund

• Investment Bank

• Retail Store

What is the purpose of a credit score?

• To determine the price of goods

• To calculate taxes

• To evaluate job performance

• To assess a person's credit risk

What does the acronym "ETF" stand for in finance?

• Every Transaction Fee

• Exchange-Traded Fund

• External Taxation Factor

• Endorsement and Transfer Fee

Which of the following is a characteristic of a checking account?

• Usually has a minimum balance requirement

• Typically offers high-interest rates

• Limited to a certain number of withdrawals per month

• Mainly used for long-term savings

What is the main purpose of diversification in investment?

• To minimize risk

• To increase potential returns

• To maximize tax benefits

• To ensure liquidity

What does the acronym "NYSE" stand for in finance?

• New York State Exchange

• National Yield and Securities Exchange

• New York Stock Exchange

• National Yield for Stock Exchange