Banking & Insurance Quiz

Which type of bank primarily deals with individual customers and small businesses? 

• A) Central Bank

• B) Commercial Bank

• C) Investment Bank

• D) Cooperative Bank

What is the main purpose of a Central Bank?

• A) To provide loans to individuals

• B) To regulate the country's monetary policy

• C) To offer checking accounts

• D) To insure deposits

Which type of account typically earns interest and allows limited withdrawals?

• A) Checking Account
  

• B) Savings Account
  

• C) Fixed Deposit Account
  

• D) Current Account

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

• A) Reserve Requirement
  

• B) Capital Ratio
  

• C) Liquidity Ratio
  

• D) Asset Ratio

Which of the following is NOT a type of bank?

• A) Commercial Bank
  

• B) Investment Bank
  

• C) Insurance Bank
  

• D) Cooperative Bank

What is a current account primarily used for?

• A) Saving money for future use
  

• B) Daily transactions and business activities
  

• C) Long-term investment
  

• D) High-interest savings

Which of the following is an important role of banks in the economy?

• A) To create money
  

• B) To print currency
  

• C) To regulate stock markets
  

• D) To collect taxes

What type of bank is established to serve specific groups of people, often in rural areas?

• A) Commercial Bank
  

• B) Cooperative Bank
  

• C) Central Bank
  

• D) Development Bank

Which of the following is an example of a non-banking financial institution (NBFI)?

• A) Savings and Loan Association
  
  

• B) Credit Union
  

• C) Mutual Fund
  

• D) Commercial Bank

What is the primary function of an investment bank?

• A) Accepting deposits
  
  

• B) Facilitating mergers and acquisitions
  

• C) Providing personal loans
  

• D) Offering savings accounts