Chap 3 Banking Deposit Quiz

Which type of deposit is designed to provide immediate access to funds?

• Transaction deposits

• Non-transaction deposits

• Hybrid deposits

• Fixed deposits

Which of the following is NOT a characteristic of savings deposits?

• Unlimited withdrawal privileges

• Low interest rate

• Fixed maturity date

• Stable source of funds for banks

Money Market Deposit Accounts (MMDAs) are attractive to banks because:

• They have no transaction limits

• They require no reserve holding

• They yield high profits

• They are held only by governments

Which deposit type allows upward adjustment in promised interest rates during its term?

• Bump-up CDs

• Step-up CDs

• Liquid CDs

• Jumbo CDs

What type of deposits are insured under the FDIC insurance program?

• Foreign deposits

• Corporate deposits

• Deposits payable in the U.S.

• Equity deposits

Which Act allowed banks to electronically transfer check images instead of the physical check?

• Glass-Steagall Act

• Check 21 Act

• Dodd-Frank Act

• Community Reinvestment Act

Core deposits are characterized by:

• High interest rate sensitivity

• Predominance in large banks

• Large denomination deposits

• Stable and predictable behavior

Which factor does NOT influence deposit interest rates?

• Maturity of the deposit

• Marketing goals of the institution

• Stock market performance

• Risk of the offering institution

ElmBank uses conditional pricing for accounts. Which factor likely determines fees?

• Bank’s annual profit

• Number of transactions

• Local economic conditions

• Customer’s age

RedOak Bank launched a “Lifeline Banking” program. This initiative primarily benefits:

• High-income individuals

• Corporations

• Low-income individuals

• Foreign investors