Lesson 5 Bank Deposit Function Quiz

What is the primary purpose of bank deposits?

• To generate profits for the bank

• To serve as a liability for the bank

• To provide loans to customers

• To facilitate international trade

Which of the following is NOT a motive for depositors to place their money in banks?

• Earnings or Income

• Safety

• Convenience

• High-risk investments

What type of deposit account is designed to promote financial inclusion?

• Savings Deposit Account

• Basic Deposit Account

• Demand Deposit Account

• Time Deposit Account

What is a characteristic of a Time Deposit?

• It has a specified date of maturity

• Funds can be withdrawn at any time

• It is only available to businesses

• It does not earn interest

Which account allows for frequent access to funds on demand?

• Savings Deposit Account

• Time Deposit Account

• Demand Deposit Account

• Basic Deposit Account

What is required to open an individual bank account?

• Only one valid ID

• A letter from an employer

• Two valid IDs and proof of billing

• A minimum deposit of $1000

What does KYC stand for in banking?

• Know Your Credit

• Keep Your Cash

• Keep Your Customer

• Know Your Customer

Which of the following is a requirement for company bank accounts?

• A business plan

• Personal references

• Proof of income

• Two valid IDs of signatories

What is the role of the Anti-Money Laundering Council (AMLC)?

• To regulate interest rates

• To implement the Anti-Money Laundering Act

• To manage bank deposits

• To provide loans to banks

What is a feature of Negotiable Certificates of Time Deposits (NCTDs)?

• They cannot be transferred

• They are only available to individuals

• They are issued without approval

• They have a minimum maturity of 731 days