WorksheetsBanking Products & Services Final Exam
Total questions: 25
Worksheet time: 2hrs 5mins
What is the primary function of financial institutions?
To offer educational courses
To provide entertainment services
To facilitate the flow of cash through the economy
To manufacture goods
Which of the following is NOT a type of checking account?
Standard
Joint
Online
Investment
What is the main purpose of a savings account?
To purchase real estate
To invest in stocks
To pay daily expenses
To store money while earning interest
How is interest typically calculated on bank accounts?
Using a simple interest formula
Using a compound interest formula
Using a fixed interest rate
Using a variable interest rate
What is a key feature of a personal loan?
It is a recurring loan
It has a fixed interest rate
It is only for business use
It does not require repayment
Which of the following is a non-depository financial institution?
Savings and loan association
Investment bank
Credit union
Commercial bank
What is the role of the Federal Deposit Insurance Corporation (FDIC)?
To regulate credit card companies
To provide loans to individuals
To insure bank deposits
To manage stock exchanges
Which service is provided by electronic funds transfer?
Issuing physical checks
Providing in-person banking services
Automated teller machines (ATMs)
Offering investment advice
What is a characteristic of credit unions?
They only offer business loans
They are for-profit organizations
They are owned by shareholders
They are member-owned and nonprofit
What is a trust account used for?
To provide loans for home purchases
To facilitate currency exchange
To offer high-interest savings
To manage and protect an account on behalf of beneficiaries
Which of the following allows customers to borrow money from a financial institution up to a certain limit?
Debit card
Credit Card
Trust Account
Safety Deposit Box
The electronic movement of money from one account to another is known as a(n) __________.
Electronic Funds Transfer
Electronic movement of money
Technology funds
Financial electronic transaction
Which of the following is the definition of multifactor authentication?
Requiring more than one method of credential authentication to verify a user’s identity for a transaction
Restricting access to bank locations to authorized personnel only
Storing cash in a fire-proof safe
Training employees to identify fraudulent banknotes
Which of the following choices describes the first step to taking out a loan?
Gathering all personal assets
Assigning a beneficiary
Recording all transactions
Comparing institution loan rates
__________ allows customers to have their paycheck electronically deposited directly into their account.
Electronic withdrawal
Direct deposit
Deposit slip
Online payment
Which of the following is a line of credit issued to customers to cover checks or debits exceeding the amount in their account?
Automated teller machine
Debt restructuring
Overdraft protection
Cash flow budgeting
Match the following accounts to their descriptions.
For qualifying high school and college students
Student account
For qualifying elderly individuals
Senior account
For two or more account holders
Joint account
Secure means of storing money in which individuals or businesses can deposit or withdraw money as needed
Checking account
Account designed for children to learn about saving
Kids account
Which of the following allows individuals to borrow against their home’s value to finance major expenses
Home equity loan
Mortgage loan
Restructuring loan
Refinancing loan
(a) are companies engaged in the business of dealing with the (b) transactions of individual and commercial clients. These institutions facilitate the (c) through the (d) and are regulated by federal and state laws and monitored through the (e) .
Wyatt needs to go to a financial institution to open a checking account; however, he wants to use the services of a nonprofit financial institution. Which financial institution should Wyatt visit?
Commercial bank
Credit union
Retail bank
Investment bank
Mercy is ready to purchase her first house, but she will require the use of a loan. She will most likely require a __________ loan.
Home equity
Auto
Mortgage
Beneficiary
Match the following checking accounts to their descriptions.
For customers who want a reliable basic account
Standard account
For customers with no need for in-person banking
Online account
For business owners
Business account
For customers with large sums of money
Premium account
Select all the following which are forms of electronic funds transfer.
Automated teller machine
Direct deposit
Overdraft protection
Trust deposit
Select all of the following items which are required to open a savings account.
Current bank account and routing numbers
Initial deposit
Previous year’s tax receipts
Valid government-issued identification
__________ provide financial coverage to protect individuals or organizations against possible adverse events in exchange for premium payments.
Insurance companies
Brokerage firms
Retail banks
Investment unions
