Wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

Banking Products & Services Key Concepts

Total questions: 100

Worksheet time: 50mins

Name
Class
Date
1.

The purpose and function of financial institutions is:

a)

To facilitate the flow of money and provide financial services.

b)

To manufacture consumer goods.

c)

To regulate international trade agreements.

d)

To provide healthcare services.

2.

The different types of services financial institutions offer include:

a)

Loans, savings accounts, investment services, and insurance

b)

Only loans and savings accounts

c)

Only investment services and insurance

d)

Only currency exchange and ATM services

3.

Interest is calculated using which of the following methods?

a)

By multiplying principal, rate, and time

b)

By adding principal and rate only

c)

By dividing principal by rate

d)

By subtracting rate from principal

4.

Fill in the blank: Financial institutions are engaged in the business of dealing with ______ transactions of individual and commercial clients.

a)

monetary

b)

legal

c)

educational

d)

medical

5.

Fill in the blank: Financial institutions facilitate the ______ of cash through the economy among consumers, businesses and government.

a)

flow

b)

storage

c)

loss

d)

blockage

6.

Fill in the blank: Financial institutions are regulated by federal and state laws and monitored through the ______ ______ ______.

a)

Federal Reserve System

b)

Internal Revenue Service

c)

Department of Commerce

d)

Securities and Exchange Commission

7.

Fill in the blank: Financial institutions include a wide range of ______ such as banks, savings and loan associations, trust companies, credit unions and investment firms.

a)

organizations

b)

currencies

c)

technologies

d)

locations

8.

Fill in the blank: Financial institutions exist to help individuals and businesses meet current and future financial ______.

a)

goals

b)

problems

c)

debts

d)

risks

9.

Fill in the blank: Many financial service providers offer helpful information, ______ tools, practical strategies and more to their customers.

a)

interactive

b)

expensive

c)

obsolete

d)

confusing

10.

Fill in the blank: Financial institutions offer many services and products, such as ______ accounts.

a)

checking

b)

grocery

c)

library

d)

movie

11.

Fill in the blank: Financial institutions offer many services and products, such as ______ loans.

a)

business

b)

holiday

c)

picnic

d)

party

12.

Fill in the blank: Financial institutions offer many services and products, such as ______ cards.

a)

debit

b)

gift

c)

playing

d)

business

13.

Fill in the blank: Financial institutions offer many services and products, such as ______ counseling.

a)

financial

b)

legal

c)

medical

d)

nutritional

14.

Which of the following is a feature of a checking account?

a)

Ability to send money with transfers and wires

b)

Earning compound interest

c)

Limiting the number of withdrawals

d)

Not intended for daily expenses

15.

What is the purpose of a routing number in a checking account?

a)

To identify the specific financial account

b)

To serve as an address for the bank

c)

To monitor monthly statements

d)

To earn interest

16.

Fill in the blank: Individuals and businesses can closely monitor their money with ______ statements.

a)

monthly

b)

annual

c)

weekly

d)

daily

17.

Which type of checking account is designed for qualifying high school and college students?

a)

Senior

b)

Student

c)

Premium

d)

Joint

18.

Savings accounts are intended for daily expenses.

a)

True

b)

False

19.

Fill in the blank: Savings accounts are considered a more financially ______ means of keeping unneeded funds compared to a checking account.

a)

advantageous

b)

risky

c)

unreliable

d)

expensive

20.

Which of the following is NOT a feature of a checking account?

a)

Debit cards for ATM withdrawals

b)

Direct deposits from employer

c)

Limiting the number of withdrawals

d)

Personal or business checks

21.

Fill in the blank: Interest can be earned on the ______ held in any bank account.

a)

balance

b)

cheque

c)

signature

d)

address

22.

Which type of checking account is for business owners?

a)

Joint

b)

Business

c)

Premium

d)

Online

23.

Earned interest on bank accounts tends to utilize compound interest.

a)

True

b)

False

24.

What is the typical range of interest rates for accounts, according to the worksheet?

a)

0.01 percent to 2 percent annually

b)

1 percent to 5 percent monthly

c)

2 percent to 10 percent annually

d)

0.1 percent to 1 percent monthly

25.

Which type of account typically has lower interest rates?

a)

Savings accounts

b)

Checking accounts

c)

Investment accounts

d)

Retirement accounts

26.

Fill in the blank: Interest on savings or checking accounts is often calculated daily, but not ______ or added to an account until the end of a statement period.

a)

compounded

b)

withdrawn

c)

spent

d)

deposited

27.

Which of the following is NOT required to calculate interest using the simplified compound interest formula?

a)

Average balance or principle

b)

Statement period or frequency

c)

Interest rate

d)

Account holder's age

28.

What is the formula used to find the total amount in a bank account with compound interest?

a)

A) A=P(1+r/n)(nt)A = P(1+r/n)^{(nt)}

b)

B) A = P + r

c)

C) A = P - r

d)

D) A = P(1−r/n)(nt)P(1-r/n)^{(nt)}

29.

Gary maintains an average balance of $3,050 in his checking account. The annual interest rate is 2 percent and the bank pays interest monthly. What will be the total amount in Gary's account after two years?

a)

$3,050

b)

$3,174.62

c)

$3,200

d)

$3,100

30.

Fill in the blank: The annual interest rate on Gary's checking account is ______ percent.

a)

2

b)

1

c)

3

d)

4

31.

What is the typical amount range for personal loans from a bank?

a)

500to500 to 5,000

b)

1,000to1,000 to 50,000

c)

10,000to10,000 to 100,000

d)

50,000to50,000 to 500,000

32.

Personal loans are considered ______ purpose loans in which individuals can choose how to use them.

a)

general

b)

specific

c)

educational

d)

housing

33.

Which of the following is NOT a feature of personal loans?

a)

A) One-time loans

b)

B) Used for business purposes

c)

C) Fixed interest rates

d)

D) Creation of debt to be repaid with added interest

34.

Business loans require the business to repay the loan according to the ______ institution's terms and conditions.

a)

financial

b)

educational

c)

medical

d)

government

35.

Which of the following is typically required when applying for a business loan?

a)

Loan application form

b)

Business description

c)

Executive summary

d)

All of the above

36.

Mortgage loans are given by a financial institution for the purchase of ______.

a)

real estate

b)

vehicles

c)

electronics

d)

furniture

37.

Which type of loan is given by a financial institution for the purchase of a vehicle?

a)

Home equity loan

b)

Auto loan

c)

Personal loan

d)

Student loan

38.

A home equity loan allows an individual to borrow ______ their home’s value to finance major expenses such as home repairs, medical bills, or college education.

a)

against

b)

above

c)

under

d)

beside

39.

Debit cards allow bank customers to draw money directly from their ______ account in order to make purchases or withdraw cash.

a)

checking

b)

savings

c)

loan

d)

credit

40.

Debit cards are considered a safe and convenient alternative to cash or checks.

a)

True

b)

False

41.

Credit cards allow consumers to ______ money from a financial institution up to a certain limit in order to purchase items or withdraw cash.

a)

deposit

b)

borrow

c)

save

d)

invest

42.

To apply for a credit card, consumers are usually required to apply for a ______.

a)

savings account

b)

line of credit

c)

debit card

d)

trust account

43.

Interest on credit card purchases begins one month after a purchase is made and borrowing limits are set according to the individual’s ______ rating.

a)

credit

b)

income

c)

age

d)

education

44.

Trust accounts allow banks to manage and protect an account on behalf of a ______ or beneficiaries, such as cash, savings bonds, stocks, mutual funds, and real estate.

a)

beneficiary

b)

manager

c)

shareholder

d)

auditor

45.

Financial counseling is available at multiple financial institutions in order to advise individuals on money and ______.

a)

debt

b)

weather

c)

sports

d)

fashion

46.

Financial counseling involves financial problem solving and setting ______ and long-term goals.

a)

immediate

b)

delayed

c)

flexible

d)

uncertain

47.

Financial institutions are:

a)

organizations that provide financial services such as banks and insurance companies

b)

government agencies that regulate trade

c)

companies that manufacture consumer goods

d)

educational institutions that offer finance courses

48.

The different functions and types of financial institutions include:

a)

Accepting deposits, providing loans, investment services, and insurance.

b)

Only providing loans to individuals.

c)

Managing only government funds.

d)

Issuing only credit cards.

49.

The difference between depository and non-depository financial institutions is:

a)

Depository institutions accept deposits from the public, while non-depository institutions do not.

b)

Non-depository institutions accept deposits, while depository institutions do not.

c)

Both types of institutions accept deposits from the public.

d)

Depository institutions only provide loans, while non-depository institutions only offer insurance.

50.

Which organizations accept deposits and provide loans?

a)

Banks

b)

Insurance companies

c)

Investment firms

d)

Real estate agencies

51.

Banks use deposits to provide ______ and commercial loans.

a)

personal

b)

mortgage

c)

student

d)

auto

52.

Which of the following is NOT included as a type of bank?

a)

Commercial banks

b)

Retail banks

c)

Credit unions

d)

Grocery stores

53.

What is the main function of commercial banks?

a)

Selling products

b)

Receiving, transferring, and lending money

c)

Providing insurance

d)

Managing real estate

54.

Commercial banks may offer services specific to large corporations, such as foreign trade services, credit card processing, and merchant services.

a)

True

b)

False

55.

Name one example of a commercial bank mentioned in the list.

a)

JP Morgan Chase

b)

Apple Inc.

c)

Google LLC

d)

Tesla Motors

56.

Retail banks provide a wide variety of financial services for individuals, families, and small businesses.

a)

True

b)

False

57.

Retail banks do not deal with ______ corporations and financial institutions.

a)

large

b)

small

c)

medium

d)

local

58.

Credit unions offer many of the same services as banks.

a)

True

b)

False

59.

Which of the following is a characteristic of Credit Unions?

a)

For-profit organizations

b)

Member-owned, nonprofit financial institutions

c)

Not supervised by any authority

d)

Only offer credit cards

60.

Credit Unions are supervised and insured by which organization?

a)

Federal Reserve

b)

The National Credit Union Administration

c)

Securities and Exchange Commission

d)

Department of Treasury

61.

Fill in the blank: Credit Unions offer higher savings rates and charge ______ compared to most banks.

a)

lower fees

b)

higher fees

c)

the same fees

d)

no fees

62.

Savings & Loan Associations are always nonprofit organizations.

a)

True

b)

False

63.

Which of the following is NOT a type of Non-Depository Financial Institution?

a)

Investment banks

b)

Brokerage firms

c)

Credit Unions

d)

Insurance companies

64.

Fill in the blank: Savings & Loan Associations are primarily in the business of handling ______ accounts, personal loans, and mortgage lending.

a)

deposit

b)

checking

c)

credit

d)

investment

65.

Which of the following is an example of a Credit Union?

a)

Highland Federal Savings & Loan Association

b)

Navy Federal Credit Union

c)

Goldman Sachs

d)

State Farm Insurance

66.

Investment Banks & Companies are ______ organizations which hold and manage securities for investment purposes.

a)

nonprofit

b)

private

c)

government

d)

member-owned

67.

Fill in the blank: Securities are financial instruments with ownership rights, ______ rights or rights to buy, sell or trade.

a)

debt

b)

property

c)

voting

d)

tax

68.

Non-Depository Financial Institutions offer federally insured deposit accounts.

a)

True

b)

False

69.

Investment Banks are regulated by which organization?

a)

Federal Deposit Insurance Corporation (FDIC)

b)

Securities and Exchange Commission (SEC)

c)

Internal Revenue Service (IRS)

d)

Federal Reserve

70.

Fill in the blank: Investment banks are ______ organizations which help companies raise capital.

a)

for-profit

b)

non-profit

c)

government

d)

charitable

71.

Which of the following is NOT an example of an investment bank?

a)

Goldman Sachs

b)

Barclays

c)

Citigroup

d)

Allstate

72.

Brokerage firms assist individuals in buying and selling securities among ______.

a)

investors

b)

banks

c)

governments

d)

corporations

73.

Fill in the blank: Brokerage firms derive their profit from ______ on orders given.

a)

commissions

b)

interest

c)

dividends

d)

fees

74.

Which of the following is a brokerage firm?

a)

Fidelity

b)

State Farm Insurance

c)

Goldman Sachs

d)

Nationwide Mutual Insurance Company

75.

Insurance companies provide ______ coverage to protect individuals or organizations against possible adverse events in exchange for premium payments.

a)

financial

b)

medical

c)

legal

d)

educational

76.

Fill in the blank: Money collected from ______ is used by insurance companies to pay claims.

a)

premiums

b)

taxes

c)

donations

d)

investments

77.

Which of the following is NOT an insurance company?

a)

A) Allstate

b)

B) Nationwide Mutual Insurance Company

c)

C) Schwab

d)

D) State Farm Insurance

78.

Mortgage companies provide loans for prospective ______.

a)

home buyers

b)

car owners

c)

students

d)

business travelers

79.

Fill in the blank: Mortgage companies are ______ organizations regulated by the Federal Deposit Insurance Corporation (FDIC).

a)

for-profit

b)

non-profit

c)

government

d)

charitable

80.

Which of the following is a free service offered by mortgage companies?

a)

Premiums

b)

Calculators

c)

Commissions

d)

Assets

81.

How does an individual open a financial account?

a)

By submitting required documents and completing an application process

b)

By making a phone call without any documentation

c)

By sending a text message

d)

By visiting any website without verification

82.

The steps to managing financial accounts include:

a)

Tracking income and expenses, budgeting, reconciling accounts, and reviewing statements.

b)

Ignoring account balances and spending freely.

c)

Only saving receipts without reviewing statements.

d)

Making random purchases without tracking income.

83.

Loss prevention is:

a)

a strategy to reduce theft and minimize losses in businesses

b)

a method to increase sales through advertising

c)

a way to improve employee satisfaction

d)

a technique for expanding product lines

84.

Online Banking gives customers the ability to manage money online with a ________ or computer.

a)

mobile device

b)

television

c)

printer

d)

calculator

85.

Which of the following is NOT a feature of Online Banking?

a)

A) Paying bills

b)

B) Depositing checks

c)

C) Downloading statements

d)

D) Cooking recipes

86.

When opening a savings account, individuals must provide basic personal information, valid government-issued identification, current bank’s account and routing numbers, and an initial ________.

a)

deposit

b)

signature

c)

address

d)

reference

87.

The best savings accounts should provide great customer service, high-end technology, higher-than-average interest rates, and should have low or no fees.

a)

True

b)

False

88.

Managing a Savings Account includes working towards ________ goals.

a)

savings

b)

spending

c)

borrowing

d)

investing

89.

Which of the following is NOT part of managing a savings account?

a)

A) Making regular deposits

b)

B) Recording all account activity

c)

C) Protecting account information

d)

D) Ignoring account events

90.

Taking out a loan allows individuals or businesses to borrow money for ________ when funds are not readily available.

a)

expenses

b)

entertainment

c)

vacations

d)

gifts

91.

Choices for loans may be limited based on the type of loan needed.

a)

True

b)

False

92.

What is the purpose of evaluating monthly payments when considering a loan?

a)

To determine what an individual can afford based on personal budget.

b)

To find out the total interest paid over the life of the loan.

c)

To compare different lenders' customer service ratings.

d)

To check the credit score requirements for the loan.

93.

Choosing a loan with a ______ loan term typically provides lower overall interest.

a)

shorter

b)

longer

c)

fixed

d)

variable

94.

What is the benefit of choosing a loan with the least amount of money owed over the entire term, if affordable?

a)

It is smart financially as it reduces the total amount paid in interest and principal.

b)

It increases the total interest paid over time.

c)

It makes the loan term longer and more expensive.

d)

It results in higher monthly payments without any financial benefit.

95.

Managing a Loan includes understanding the ______ agreement.

a)

loan

b)

rental

c)

employment

d)

insurance

96.

Setting up ______ alerts is important for managing account events.

a)

email

b)

weather

c)

calendar

d)

location

97.

Safeguarding Financial Institutions involves actions taken by the Federal Reserve Banks to ______ and monitor accounts for financial institutions.

a)

maintain

b)

close

c)

ignore

d)

restrict

98.

The Federal Deposit Insurance Corporation (FDIC) protects individuals and businesses by maintaining the ______ of the nation’s banking systems.

a)

stability

b)

growth

c)

decline

d)

privatization

99.

Loss Prevention Measures include implementing ______ authentication to verify the user’s identity for a login or transaction.

a)

multifactor

b)

single-factor

c)

password-only

d)

token-based

100.

Restricting access to authorized personnel and storing cash-related items in a ______-proof safe are examples of loss prevention measures.

a)

fire

b)

water

c)

shock

d)

dust

Similar Resources on Wayground

Federal Reserve Test

101 questions

Federal Reserve Test

quiz

Worksheet

•

9th - 12th Grade

S25TH - Saving and Investing

96 questions

S25TH - Saving and Investing

quiz

Worksheet

•

12th Grade

QUIZ PERTEMUAN 5_ETIKA PROFESI AUDITOR

100 questions

QUIZ PERTEMUAN 5_ETIKA PROFESI AUDITOR

quiz

Worksheet

•

12th Grade