#1
Which of the following is not a type of financial account?
Checking account
Savings account
Demat account
Transaction account
#2
What is the primary function of a bank?
Issuing credit cards
Providing loans and mortgages
Accepting deposits and lending money
Offering investment advice
#3
What does the term 'FDIC' stand for in banking?
Federal Deposit Insurance Corporation
Financial Development and Investment Commission
Federal Debt and Investment Corporation
Financial Deposit and Insurance Commission
#4
What is the maximum limit of FDIC insurance coverage per depositor per bank?
$100,000
$250,000
$500,000
$1,000,000
#5
What is the purpose of a SWOT analysis in financial planning?
To assess the strengths and weaknesses of a company's financial statements
To evaluate the potential risks and opportunities in the financial market
To determine the optimal investment strategy for a portfolio
To calculate the return on investment (ROI) for different financial products
#6
Which of the following is a characteristic of a money market account?
Higher interest rates than savings accounts
No withdrawal restrictions
FDIC insurance
Long-term investment horizon
#7
Which financial institution typically offers the highest interest rates on deposits?
Commercial bank
Credit union
Investment bank
Central bank
#8
What does the term 'APY' stand for in banking?
Annual Profit Yield
Average Percentage Yield
Annual Percentage Yield
Average Profit Yield
#9
In banking, what is 'KYC'?
Know Your Currency
Know Your Customer
Keep Your Coins
Key Yield Calculation
#10
What is the main purpose of the SWIFT network in the financial industry?
Facilitating communication between banks for international transactions
Providing loans to small businesses
Regulating stock exchanges
Issuing credit cards
#11
What is the role of an investment banker?
Providing financial advice to individuals
Managing mutual funds
Underwriting securities issuance
Processing credit card transactions
#12
What is a 'liquidity ratio' used for in financial analysis?
To measure a company's ability to meet short-term obligations
To assess a company's profitability
To evaluate the efficiency of inventory management
To determine the return on investment (ROI) for shareholders
#13
What is the role of the Federal Reserve in the United States banking system?
Managing government spending
Issuing currency
Regulating banks and monetary policy
Determining tax rates
#14
What is a 'prime rate' in banking?
The rate at which central banks lend money to commercial banks
The interest rate charged by banks to their most creditworthy customers
The rate at which banks lend money to each other overnight
The rate at which banks pay interest on deposits
#15
What is the purpose of a 'limit order' in stock trading?
To buy or sell a stock at the current market price
To buy or sell a stock only if it reaches a specified price
To automatically sell a stock when it reaches a certain profit margin
To trade stocks during specific hours of the trading day
#16
What is 'leverage' in financial markets?
The ratio of debt to equity in a company's capital structure
The process of borrowing money to invest in securities
The ability to buy and sell securities quickly without affecting their price
The practice of investing in multiple asset classes to reduce risk
#17
What is the primary purpose of the Federal Deposit Insurance Corporation (FDIC) in the United States?
To regulate the stock market
To insure bank deposits against bank failures
To oversee international trade agreements
To manage government spending