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Banking

Total questions: 30

Worksheet time: 3600secs

Name
Class
Date
1.

What of the following is true? Bank... (4)

a)

is a financial institution

b)

is a financial intermediary

c)

is a private business and is not regulated

d)

connects customers that have capital deficits to customers with capital surpluses

e)

accepts deposits and channels those deposits into lending activities

2.

Which types of banks can you name? (3)

a)

Central bank

b)

Investment bank

c)

Non-profit bank

d)

Commercial bank

3.

Which of the following are the functions of commercial banks (both primary and secondary)? (3)

a)

maintain record of Government revenue and expenditure

b)

determine foreign exchange rates

c)

exchange foreign currencies

d)

receive deposits

e)

give loans

4.

What functions have the merchant (investment) banks? (2)

a)

raise funds for industry on the various financial markets

b)

determine foreign exchange rates

c)

finance international trade

d)

receive deposits

5.

What are the main functions implemented by the Central bank? (4)

a)

It prints the national currency and determines foreign exchange rates

b)

it advises the Government on monetary and credit policies and maintains record of Government revenue and expenditure

c)

offer stockbroking and portfolio management services to rich corporate and individual clients

d)

it decides on the interest rates for bank deposits and bank loans

e)

maintain deposit accounts of all other banks and advances money to other banks, when needed

6.

What differs merchant (investment) bank from commercial one?

a)

Merchant banks work mainly with the government

b)

Merchant banks work mainly with individuals

c)

Merchant banks deal mainly with businesses

d)

Merchant banks deal mainly with commercial banks

7.

What are the main types of deposits? (3)

a)

Current Deposit

b)

Interest Deposit

c)

Fixed deposit

d)

Savings deposit

8.

What is the difference between current and fixed deposit?

a)

Current deposit is only for small sums of money

b)

Fixed deposits can be withdrawn any time, but current deposits can not

c)

Current deposits can be withdrawn any time, but fixed deposits can not

9.

What types of loans do you know? (3)

a)

Savings

b)

Cash credit

c)

overdraft

d)

current

e)

Mortage

10.

What are the primary functions of commercial banks? (2)

a)

accepting deposits

b)

collection of checks

c)

granting loans

d)

foreign exchange

11.

Which of the following are the secondary functions of the commercial banks? (3)

a)

collection of checks

b)

transfer of funds

c)

dealing in foreign exchange

d)

accepting deposits

e)

lending money

12.

What is a minimum interest rate?

a)

This is the discount rate, at which the central bank makes secured loans to government

b)

This is the discount rate, at which the central bank makes secured loans to individuals

c)

This is the discount rate, at which the central bank makes secured loans to business

d)

This is the discount rate, at which the central bank makes secured loans to commercial banks

13.

What is collateral?

a)

Hollywood movie with Tom Cruise

b)

an asset to secure the loan

c)

the board of directors of the central bank

d)

member of bank staff

14.

Who are blue chips?

a)

Very rich bankers

b)

Wealthy government officers

c)

poor people

d)

very safe large companies

15.

Which of the following are services granted by the banks? (3)

a)

Mobile banking

b)

Net-banking

c)

Collateral

d)

ATM

e)

Safeguarding

16.

What are the advantages of keeping money in the bank? (2)

a)

interest

b)

protection of funds

c)

The possibility of withdrawing money anytime with high interest rates

d)

good pension

17.

Why banks make profit? The main source

a)

They collect more interest than they pay to savers

b)

They pay more to savers than they collect

c)

They sell a lot of currency

d)

They render a lot of consult services

18.

What kind of bank does not take or keep the money of individual?

a)

investment (merchant)

b)

commercial

c)

retail

d)

savings

19.

Which of the following are Central banks? (3)

a)

Federal Reserve of the United States

b)

Bank of England

c)

Central Bank of Russia

d)

Barclays

e)

Sberbank

20.

What are the examples of banks?

a)

central bank

b)

commercial (retail) bank

c)

savings and loans banks

d)

development banks

e)

all of them

21.

What was the cause of the global banking crisis in 2008?

a)

Banks gave mortgages without checking financial backgrounds of clients

b)

Banks did not give loans to individuals

c)

Banks did not give loans to business

d)

The collapse of US currency

22.

What year did the first world wide banking crisis emerged?

a)

1929

b)

2008

c)

1998

d)

1914

23.

What can you pay for?

a)

rent, bill, a fine

b)

inherit, earn, win, sell

c)

have, pay, owe, own, invest

d)

pay for, pay with, pay in

24.

How can you get money?

a)

rent, bill, a fine

b)

inherit, earn, win, sell

c)

have, pay, owe, own, invest

d)

pay for, pay with, pay in

25.

How can you get money?

a)

rent, bill, a fine

b)

inherit, earn, win, sell

c)

have, pay, owe, own, invest

d)

pay for, pay with, pay in

26.

Where is the world’s oldest bank?

a)

England

b)

Italy

c)

Egypt

d)

Russia

27.

Which American President signed a bill in which the government guaranteed the savings of depositors if a bank went bankrupt?

a)

Franklin D. Roosevelt

b)

Theodore Roosevelt

c)

Benjamin Franklin

d)

Joe Biden

28.

When was the world’s first credit card issued?

a)

1960

b)

1950

c)

1970

d)

1940

29.

What is the name of the central bank in USA?

a)

The central bank of the USA

b)

Federal Reserve

c)

The Monitary Authority of the United States of America

d)

Federal Express

30.

What is the name of the central bank in Great Britain?

a)

Bank of England

b)

Bank of the United Kingdom

c)

Bank of EU

d)

British Bank