WorksheetsBanking and Finance Quiz
Total questions: 15
Worksheet time: 8mins
Maria deposits $5,000 in a savings account earning 2% annual interest. The bank uses that money to lend out at 6%. How does this process benefit the economy?
Maria loses money while the bank profits.
The bank charges Maria a fee to cover the loan.
Maria can borrow back her own money anytime.
The bank’s lending helps someone buy a home or start a business.
A local farmer needs a $20,000 loan to buy new equipment. Which institution is most likely to offer him fair terms and reinvest in the local community?
Payday lender
Large international investment bank
Hedge fund
Local credit union
A startup raises $500,000 through Kickstarter. What is a key benefit of crowdfunding over a traditional bank loan?
They avoid sharing profits with investors.
Investors automatically become company owners.
If the project fails, each backer only loses a small amount.
Banks will forgive any future debt.
John has $10,000 to invest but doesn’t want his financial advisor motivated by sales commissions. What’s his best option?
A credit card company earning on interest charges
A payday lender offering fast cash
A bank that gives commission bonuses to salespeople
An investment bank that charges a flat yearly fee
A bank offers 0.5% interest on savings but loans money at 5%. What is the biggest risk the bank faces?
Depositors might sue the bank for low rates
The bank forgets to charge interest
Interest rates could rise, hurting profits
Borrowers might default and not repay loans
Which situation MOST closely caused the 2008 financial crisis?
Banks refused to give out any loans at all
Banks ran out of paper money and closed
Banks increased interest rates on savings accounts
Banks gave loans to many people who couldn’t repay them
A country struggles with ten local currencies. How could banks help solve this problem?
Banks create one world currency
Banks tax traders to prevent competition
Banks trade currency and convert values fairly
Banks stop all trade until one currency is used
Lisa chooses a credit union because she likes their member-focused approach. What is a benefit she might receive?
Free government bailouts when needed
Guaranteed high profits on risky investments
No loan repayment required if she changes her mind
A vote on major decisions of the credit union
After the 2008 crash, governments required banks to keep emergency funds. Why?
To pay bank executives bonuses
To ensure banks could absorb future losses
To make sure banks gamble more for profits
To reduce the number of credit unions
A small business owner needs a loan but is worried about high-interest rates and hidden fees. Which option focuses on shared values and community investment?
Payday loan
Stock market speculation
Using a credit card
Credit union loan
What is the primary reason crowdfunding spreads risk for individual investors?
Projects can’t lose money
The platform refunds all money if the project fails
Investors automatically become company owners
Each person is only responsible for part of the total investment
Why are microcredits a successful model for helping people in developing countries?
Microcredits build corporate factories
Microcredits target wealthy investors
Microcredits give small loans to people ignored by big banks
Microcredits always make the bank the most profit
A new bank model charges clients a fixed fee instead of sales commissions. What incentive does this create?
To prioritize high-risk investments
To give bad advice to earn commissions
To act in the client’s best interest without pushing products
To only work with the government
Sarah is concerned about low interest on savings but still uses a bank. Why?
She can withdraw unlimited money with no record
Savings accounts double her money
Her money is safer than keeping cash at home
Banks will always invest her money in the stock market
Which example BEST shows how banks manage risk in their daily operations?
Refusing to open any new accounts
Printing more money when cash runs low
Charging random fees for fun
Giving loans only after checking credit history and collateral
