#1
Which of the following is not a type of financial institution?
Commercial Bank
Credit Union
Retail Store
Investment Bank
#2
What is the primary function of an investment bank?
Issuing credit cards
Providing savings accounts
Facilitating mergers and acquisitions
Offering mortgage loans
#3
Which financial service typically involves borrowing money to purchase a home?
Auto loan
Student loan
Mortgage loan
Personal loan
#4
What is the main function of an insurance company?
Providing loans to businesses
Offering investment advice
Providing protection against financial losses
Issuing credit cards
#5
Which financial service typically involves pooling funds from multiple investors to invest in a diversified portfolio of securities?
Mutual fund
Savings account
Individual retirement account (IRA)
Checking account
#6
Which of the following is NOT a type of insurance commonly offered by insurance companies?
Life insurance
Health insurance
Automobile insurance
Credit card insurance
#7
Which financial service typically offers the highest interest rates to depositors?
Savings account
Certificate of deposit (CD)
Checking account
Money market account
#8
What is the primary purpose of a credit union?
Maximizing profits for shareholders
Providing financial services to members
Facilitating international trade
Investing in real estate
#9
What is the primary role of the World Bank?
Regulating global financial markets
Providing loans to developing countries
Managing international trade agreements
Issuing global currency
#10
Which financial institution acts as an intermediary between buyers and sellers in financial markets?
Commercial bank
Investment bank
Central bank
Stock exchange
#11
Which of the following is not a characteristic of a money market instrument?
High liquidity
Long maturity period
Low risk
Issued by governments and corporations
#12
What is the primary function of a stock exchange?
Providing loans to individuals
Facilitating the buying and selling of stocks and other securities
Issuing government bonds
Offering insurance policies
#13
Which regulatory body oversees the activities of banks in the United States?
Federal Trade Commission (FTC)
Securities and Exchange Commission (SEC)
Federal Reserve System (Fed)
Consumer Financial Protection Bureau (CFPB)
#14
What is the primary purpose of a hedge fund?
Providing loans to small businesses
Offering retirement planning services
Investing pooled funds in various assets
Offering personal banking services
#15
What is the main function of the International Monetary Fund (IMF)?
Providing financial assistance to low-income countries
Regulating global stock markets
Managing international trade agreements
Stabilizing exchange rates and facilitating international monetary cooperation
#16
Which financial institution acts as the lender of last resort to commercial banks?
Central bank
Investment bank
Retail bank
Credit union
#17
Which financial service typically involves investing in a diversified portfolio of stocks and bonds based on a predetermined investment objective?
401(k) plan
Health savings account (HSA)
Money market account
Asset management account
#18
What is the primary function of a financial planner?
Facilitating the buying and selling of stocks
Managing retirement savings and investments
Offering mortgage loans
Providing personalized financial advice and creating financial plans