Banking and Investment Quiz

What is the primary function of a commercial bank?

• Issuing currency

• Granting loans

• Managing government budgets

• Conducting monetary policy

What does ATM stand for?

• Automated Teller Machine

• Automated Transaction Machine

• Auto Transfer Machine

• Automatic Teller Mechanism

Which of the following is not a type of bank account?

• Savings account

• Current account

• Fixed deposit account

• Investment account

What is the term for money that a bank must keep as a reserve and not lend out?

• Capital requirement

• Reserve requirement

• Deposit insurance

• Credit reserve

Which entity is responsible for regulating the banking sector in the United States?

• Federal Reserve

• Securities and Exchange Commission

• Treasury Department

• Internal Revenue Service

What is a mortgage?

• A loan for purchasing a car

• A loan for starting a business

• A loan for buying a home

• A short-term personal loan

Which term refers to the interest rate charged by banks on loans to their most creditworthy customers?

• Prime rate

• Base rate

• Discount rate

• Federal funds rate

What does FDIC stand for?

• Federal Deposit Insurance Corporation

• Federal Development Investment Council

• Financial Debt Insurance Committee

• Federal Department of Investment Control

What is the main purpose of the World Bank?

• To regulate international trade

• To provide financial assistance to developing countries

• To control global interest rates

• To oversee stock exchanges

Which of the following is not considered a financial institution?

• Credit union

• Investment bank

• Supermarket

• Commercial bank