Quiz  /  Banking Awareness Class 11 MCQ Questions With Answers

  • 1. 
    What is one difference between Banks and Credit Unions?

  • Banks have Checking accounts and Credit Unions have Savings Accounts
  • Banks are for profit.  Credit Unions are Non-profit.
  • Banks can give loans and Credit Unions cannot
  • Credit Unions allow everyone to join and Banks are selective

  • 2. 
    The tools and strategies the Federal Reserve uses to stabilize the economy is called?

  • Fiscal Policy
  • Monetary Policy
  • Tight Money
  • Easy Money

  • 3. 
    How many Board of Governor members are there?

  • 3
  • 5
  • 7
  • 12

  • 4. 
    What type of endorsement is the most secure?

  • Blank Endorsement
  • Restrictive Endorsement
  • Endorsement in Full
  • Full Endorsement

  • 5. 
    The drawer is the person writing check.

  • True
  • False

  • 6. 
    If you make an error on a check, what should you do?

  • Void the check and write a new one
  • Make corrections and initial the change
  • Use whiteout to fix the error
  • Throw the check away and write a new one

  • 7. 
    If there is an error in a bank savings register, it typically means the bank has made an error.

  • True
  • False

  • 8. 
    How do financial institutions make most of their money?

  • Fees
  • Interest
  • Mutual Funds
  • Loan Payments

  • 9. 
    It is ok to leave the amount portion of a check blank if you are unsure of the amount of an upcoming purchase.

  • true
  • false

  • 10. 
    All financial institutions and banks charge the same types of fees.

  • True
  • False

  • 11. 
    Another name for an overdraft fee is non-sufficient funds.

  • true
  • false

  • 12. 
    The only time you need to sign a deposit slip is when you are getting cash back after a deposit.

  • True
  • False

  • 13. 
    Outstaning checks are checks written by the account owner but have yet to be processed by the bank.

  • True
  • False

  • 14. 
    What is the name of a legal document that functions like cash?

  • Check
  • ATM
  • Deposit slip
  • PIN

  • 15. 
    When it comes to saving money, what is a good rule of thumb?

  • Keep most of your savings in your checking account
  • Put aside money for savings each month
  • Choose the savings account with the lowest interest rate
  • Put anything you can't afford on your credit card

  • 16. 
    You should keep your pin number in your wallet.

  • True
  • False

  • 17. 
    Which part of the check is the least important?

  • memo line
  • signature line
  • routing numbers
  • check number

  • 18. 
    What agencies insure banks and credit unions?

  • IRS and DHS
  • DHS and FDIC
  • FDIC and NCUA
  • NCUA and FICA

  • 19. 
    How many federal reserve districts are there?

  • 5
  • 10
  • 12
  • 21

  • 20. 
    What do you call the process of bringing your checkbook register into agreement with the bank statement?

  • Withdrawal
  • Deposit
  • Reconciliation
  • Endorsement

  • 21. 
    Approximately how often does a financial institution send a bank statement through the mail?

  • yearly
  • weekly
  • quarterly
  • monthly

  • 22. 
    Taking more money out of your account than is available​ is called?

  • Overdraw
  • Deposit
  • Withdraw
  • Balance

  • 23. 
    When do you have to sign a deposit slip?

  • When you receive cash back
  • When you deposit any amount of cash
  • When you deposit more than $100
  • When you deposit more than $10,000

  • 24. 
    A financial institution usually requires that an individual write a check or pay in cash for monthly service fees.

  • true
  • false

  • 25. 
    You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?

  • Compounding 1 time per year
  • Compounding quarterly
  • Compounding monthly
  • Compouding daily

  • 26. 
    Peer to Peer payment mostly involve funds being transferred from employers to employees (direct deposits).

  • True
  • False

  • 27. 
    When writing a check, it is a good idea to use

  • pencil
  • erasable pen
  • blue or black ink pen
  • red pen

  • 28. 
    The payee is the financial institution the check is written on.

  • True
  • False

  • 29. 
    Banks create money by taking in deposits, making _______, and charging _______.

  • interest, payments
  • loans, interest
  • payments, loans
  • debt, loans
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