Retail Banking Industry and Processes MCQs (Chapterwise Multiple Choice Questions)

What is meant by the term Retail Banking?

Banking institutions executing transactions with companies

Banking institutions executing transactions with foreign countries

Banking institutions executing transactions with consumers

Banking institutions executing transactions with other banks

Answer & Explanation

Correct Answer: Banking institutions executing transactions with consumers

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What does the term "Debenture" imply?

A long term loan at prime market rate

A loan for the purchase of securities

A short term loan at an adjustable rate

A long term loan to a company, usually at a fixed rate of interest and for a specific term

Answer & Explanation

Correct Answer: A long term loan to a company, usually at a fixed rate of interest and for a specific term

Note: This Question is unanswered, help us to find answer for this one

What is the payment that people receive after a mishap which leaves them in the same financial position as they were in before they suffered the loss called?

Default

Collateral

Indemnity

Back pay

Answer & Explanation

Correct Answer: Indemnity

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What is the definition of an offshore bank?

A bank located in a different state

A virtual bank with no physical location

A bank which only offers checking and no other services

A bank located outside the country of the depositor, usually in a lower tax jurisdiction

Answer & Explanation

Correct Answer: A bank located outside the country of the depositor, usually in a lower tax jurisdiction

Note: This Question is unanswered, help us to find answer for this one

What is the current maximum limit that the FDIC will insure any one person at a bank for?

$50,000

$100,000

$250,000

$1,000,000

Answer & Explanation

Correct Answer: $250,000

Note: This Question is unanswered, help us to find answer for this one

Which of the following is a reason for a person to open an offshore account?

They are pressured into it by their family

They are required to by law

They want the ability to move their money out of their home country banking system, especially during times of economic turbulence

They think the onshore banking industry is about to collapse

Answer & Explanation

Correct Answer: They want the ability to move their money out of their home country banking system, especially during times of economic turbulence

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What is the definition of a negotiable instrument?

The payee can negotiate what amount is actually deposited into their accounts; it does not have to be the amount stated

A special type of contract for the payment of money capable of transfer by negotiation

A contract for land

A music instrument purchased through a draft

Answer & Explanation

Correct Answer: A special type of contract for the payment of money capable of transfer by negotiation

Note: This Question is unanswered, help us to find answer for this one

Checking all bank account papers to make sure that the bank records and your records agree is known as:

Credit check

Credit rating

Underwriting

Reconciliation

Answer & Explanation

Correct Answer: Reconciliation

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What does the term "Straight Paper" denote?

It is another name for a bond

It is another term for cash

It is a method used for depositing checks

It stands for unsecured notes, bills of exchange and/or banker's acceptances

Answer & Explanation

Correct Answer: It stands for unsecured notes, bills of exchange and/or banker's acceptances

Note: This Question is unanswered, help us to find answer for this one

How is a savings account different from a certificate of deposit?

Savings accounts are only at banks, cd's are only at credit unions

Savings accounts can be added to or withdrawn from at any time, CDs can not be

Savings accounts are for anyone, cd's are only for rich people

Savings accounts are required by anyone having a checking account, CDs are not

Answer & Explanation

Correct Answer: Savings accounts can be added to or withdrawn from at any time, CDs can not be

Note: This Question is unanswered, help us to find answer for this one

Retail Banking Industry And Processes Quick Quiz

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Retail Banking Industry And Processes MCQ

Retail Banking Industry And Processes Quick Quiz

What is meant by the term Retail Banking?

What does the term "Debenture" imply?

What is the payment that people receive after a mishap which leaves them in the same financial position as they were in before they suffered the loss called?

What is the definition of an offshore bank?

What is the current maximum limit that the FDIC will insure any one person at a bank for?

Which of the following is a reason for a person to open an offshore account?

What is the definition of a negotiable instrument?

Checking all bank account papers to make sure that the bank records and your records agree is known as:

What does the term "Straight Paper" denote?

How is a savings account different from a certificate of deposit?