WorksheetsBAFS CHAPTER 1 TEST REVIEW
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
All of the following are functions of a bank except, __________.
a)
safeguard money
b)
print money
c)
exchange money
d)
lend money
2.
The bank function which includes keeping accurate records, identifying theft/fraud, and enforcing legal actions against those who inflict losses on the bank is __________.
a)
exchange money
b)
lend money
c)
safeguard money
d)
transfer money
3.
A deposit is considered a(n) __________ for a bank.
a)
asset
b)
liability
c)
liquid asset
d)
equity
4.
A deposit is considered a(n) __________ for a customer.
a)
asset
b)
liability
5.
More services at better rates is an effect of______________.
a)
reduction of banks to choose from
b)
diversity among banks
c)
competition between banks
d)
new banking technology
6.
Examples of types of technological innovations in banking include all but, _______.
a)
automated teller machines (ATMs)
b)
smart cards
c)
online banking
d)
lower interest rates
7.
A ______________ is a facilitator acting between parties in matters dealing with money.
a)
numeric intermediary
b)
fiscal intermediary
c)
financial intermediary
d)
governmental intermediary
8.
A ___________ is a financial institution that earns its money selling specific services or policies.
a)
non-depository
b)
depository
c)
selective
d)
specified
9.
After costs are deducted, what's left of revenue is called ________.
a)
Operating costs
b)
Profit
c)
Expenses
d)
Taxes
10.
Anything that can be readily exchanged, like cash. is considered a(n) _________.
a)
Frozen asset
b)
Primary asset
c)
Liquid asset
d)
Standardized asset
11.
A business which sells services to earn money is a _________.
a)
store
b)
bank
c)
credit card company
d)
school
12.
Medium of exchange is _______________.
a)
an agreed-upon system for measuring the value of wants and needs.
b)
an agreed-upon system for measuring the value of goods and services.
c)
an agreed-upon system for obtaining goods and services.
d)
an agreed-upon system for measuring the cost of goods and services.
13.
Most of a banks business comes from _________.
a)
stocks sold
b)
loans made
c)
credit extended to
d)
service fees
14.
When someone achieves ________ by using another person's personal information to unlawfully assume the identity of the other person identity theft has occurred.
a)
celebrity and fame
b)
financial gain
c)
emotional gain
d)
academic gain
15.
_____________ occurs when money is moved between banks, banks and individual customers, between banks and industry, and between banks and government.
a)
Money laundering
b)
Money transferring
c)
Money counterfeiting
d)
Money exchange
16.
A ______________ customer is one with a good credit rating, sufficient collateral for loans, and ongoing income.
a)
Trustworthy
b)
Loan-worthy
c)
Account-worthy
d)
Creditworthy
17.
____________ is a percentage of revenue earned on the principal (original amount) over a period of time.
a)
Investment
b)
Income
c)
Interest
d)
IRA
18.
A _________ is the most common type/form of loans.
a)
credit card
b)
home loan/mortage
c)
car loan
d)
student loan
19.
When one or more banks join or acquire another bank or banks, a __________ occurs
a)
bank closure
b)
default
c)
merger
d)
transfer
20.
How efficiently the bank is using its assets to generate revenue is measured by _____.
a)
ROA
b)
ROE
c)
ROI
d)
ROR
21.
The amount of return earned on each dollar invested is represented by
a)
ROA
b)
ROE
c)
ROI
d)
ROR
22.
Deregulation has reduced bank compettion and therefore hurt the banking industry.
a)
TRUE
b)
FALSE
23.
Profit is not a concern for a bank.
a)
TRUE
b)
FALSE
24.
Governments routinely examine the books (accounting records) of many businesses.
a)
TRUE
b)
FALSE
25.
Equity is NOT a test of bank profitability.
a)
TRUE
b)
FALSE
100 %
