#1
Which of the following is an example of a liquid asset?
Real estate property
Stocks
Savings account
Jewelry
#2
What does APR stand for in banking?
Annual Percentage Rate
Average Personal Revenue
Adjusted Price Ratio
All Purpose Return
#3
What is the purpose of compound interest?
To decrease the value of an investment
To simplify interest calculations
To earn interest on both the initial principal and the accumulated interest
To pay interest only once
#4
Which of the following is NOT a type of financial institution?
Credit Union
Investment Bank
Retail Store
Commercial Bank
#5
What does the term 'liquidity' refer to in finance?
The ability to convert assets into cash quickly without significant loss of value
The amount of debt an individual holds
The total assets of a company
The profitability of an investment
#6
Which of the following is NOT a factor that affects credit scores?
Payment history
Income level
Length of credit history
Types of credit used
#7
What is the primary function of a central bank?
Issuing currency
Lending to commercial banks
Regulating monetary policy
Providing loans to the public
#8
What is the purpose of a SWIFT code in international banking?
To identify a bank branch
To indicate the type of transaction
To determine the account holder
To calculate currency exchange rates
#9
What is the purpose of a credit score?
To measure an individual's ability to save money
To assess an individual's creditworthiness
To determine an individual's salary
To evaluate an individual's spending habits
#10
What is the main difference between a checking account and a savings account?
Interest rates
Availability of checks
Minimum balance requirements
Purpose of use
#11
What is the purpose of a Certificate of Deposit (CD) in banking?
To transfer money between accounts
To provide a loan to the bank
To earn a fixed interest rate for a specified period
To pay bills online
#12
What is the primary role of the Securities and Exchange Commission (SEC) in the United States?
To regulate banking institutions
To enforce tax laws
To oversee the stock market and protect investors
To manage government spending
#13
What is the key function of the Federal Deposit Insurance Corporation (FDIC) in the United States?
To regulate stock markets
To provide insurance for bank deposits
To manage government bonds
To oversee credit unions
#14
What is the purpose of diversification in investment portfolios?
To increase investment risk
To concentrate investments in one asset
To reduce investment risk
To eliminate investment opportunities
#15
What is the purpose of a 401(k) retirement plan?
To provide health insurance coverage
To offer paid vacation days
To save and invest for retirement with tax advantages
To pay off student loans
#16
What is the significance of the Federal Reserve System in the United States?
It manages the country's national parks
It regulates the postal service
It controls the country's monetary policy and regulates banks
It oversees the country's military operations
#17
What is the purpose of the Basel III Accord in banking regulation?
To standardize accounting practices
To prevent money laundering
To establish guidelines for risk management and capital adequacy
To regulate interest rates