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FINANCIAL SECTOR

Total questions: 20

Worksheet time: 30mins

Name
Class
Date
1.

Which of the following is NOT a financial institution ?

a)

Credit Union

b)

Central Bank

c)

Insurance Company

d)

National Lotteries Control Board

2.

Which of the following is part of the INFORMAL financial sector?

a)

Building Society

b)

Sou Sou

c)

Credit Union

d)

Development Bank

3.

The main role of the financial sector is to:

a)

Allocate funds from savers to borrowers

b)

Give expert advice

c)

Keep customers assets safe

d)

Be intermediaries for customers and businesses

4.

The incentives banks give customers to save.

a)

Capital

b)

Dividends

c)

Profit

d)

Interest

5.

Which of the following is NOT a role of the commercial bank?

a)

Provide foreign exchange services

b)

Provide compensation

c)

Distribute wealth equitably

d)

Mobilize funds between savers and borrowers

6.

Can persons can survive outside the formal financial sector?

a)

Yes

b)

No

7.

Complete the text: For _______ is the root of all evil.

a)

Money

b)

Need for money

c)

Requirement for money

d)

Love of money

8.

Which of these is NOT a monetary policy tool?

a)

Discount rate

b)

Balance Accounts

c)

Open Market Operation

d)

Reserved Requirements

9.
A reserve ratio is the:
a)
proportion of cash and security reserves the bank needs to hold.
b)
fraction of deposits that the bank is required to hold.
c)
loan to deposit ratio in the bank's balance sheet.
d)
money belonging to the bank's largest depositors.
10.

Which of the following is NOT a function of commercial bank?

a)

Providing financial and tax planning advice

b)

Print money

c)

Providing insurance

d)

Exchanging foreign currencies

11.

How many central banks are there in the Bahamas?

a)

1

b)

2

c)

3

d)

4

12.

Who own the Central Bank

a)

the Prime Minister

b)

Government

c)

Private Business Owner

d)

Opposition Leader

13.

the Function of The Central Bank that control the money supply is

a)

lender of last resort

b)

Advisor to the government

c)

controls the issue of currency

d)

bankers bank

14.

The Function of the Central bank that helps the government to get a loan is

a)

the governments bank

b)

governments' advisor

c)

managing government borrowing

d)

bankers bank

15.

A financial sector does not have the responsibility of encouraging saving

a)

True

b)

False

16.

Which of the following is a function of the financial sector?

a)

redirecting savings funds to investors in a way that makes a profit

b)

Participating in the four P's of marketing

c)

Looking for the best production costs

17.

Financial markets have the basic function of

a)

Bringing together

people with funds to lend and people who want to borrow funds.

b)

Assuring that the swings in the business cycle are less pronounced.

c)

Assuring that governments need never resort to printing mone

d)

both (B) and (C) of the above

18.

Financial institutions are also known as ______________.

a)

Financial organization

b)

Financial intermediaries

c)

Financial system

d)

Any of the above

19.

One of the MAJOR functions of a Central Bank is to

a)

issue notes and coin

b)

issue stocks and shares

c)

accept deposit accounts

d)

make loans and advances

20.

Which of the following are services provided by commercial banks?

I. Controlling the supply of money

II. Offering loans to small businesses

III. Accepting deposits from customers.

a)

I and II only

b)

I and III only

c)

II and III only

d)

I, II and III