Retail Banking Industry and Processes, Finance And Accounting

Question: Which of the following is a characteristic of a certificate of deposit?
A
You have to earn at least $100,000 in salary to be allowed to buy a CD

B
It is just a different name for a savings account

C
It requires that the funds be kept in the account for a minimum fixed period of time e.g. 90 days

D
Only large banks offer them

Note: Answer not sure
1. Report
Question: Would a bank be allowed to pay someone from a personal account without a mandate from the customer?
A
No, not without a check drawn against the account by the account holder

B
Yes, but only to government entities

C
Yes, if someone presents a written note in good faith to pay them

D
Yes, because banking is fairly unregulated

Note: Answer not sure
1. Report
Question: What would a person do if they wanted to have the facility to save money as well as issue checks?
A
They can only have one or the other facility

B
Open both a savings and a checking account with the same bank

C
Open a savings account with one bank, and a checking account with another

D
Not use a bank at all

Note: Answer not sure
1. Report
Question: What does the term "Availability Float" imply?
A
The banking hours of your local bank

B
The period of time it takes a check to be cleared

C
A limit on how long a check is good for before it becomes invalid

D
The time period or the amount represented by checks that have been deposited but not cleared

Note: Answer not sure
1. Report
Question: What is the ratio of bank reserves to bank deposits called?
A
Deposit multiplier

B
Deposit schedule

C
Reserve ratio

D
Reserve/Deposit ratio

Note: Answer not sure
1. Report
Question: What is meant by the term "Redemption"?
A
Cashing in a bond coupon

B
Receiving interest on a loan

C
Opening a secondary bank account

D
Paying off a mortgage loan in full

Note: Answer not sure
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Question: How is a savings account different from a certificate of deposit?
A
Savings accounts are only at banks, cd's are only at credit unions

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Savings accounts can be added to or withdrawn from at any time, CDs can not be

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

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

Note: Answer not sure
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Question: What is the signing of a check on its back by the payee referred to as?
A
Writing the check

B
Indorsing the check

C
Cashing the check

D
Monopolizing the check

Note: Answer not sure
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Question: What is the process which the Federal Reserve uses to influence the availability and cost of money and credit called?
A
Credit policy

B
Monetary policy

C
Credit rating

D
Federal reserve system

Note: Answer not sure
1. Report
Question: Why is a negotiable instrument a "special contract"?
A
Because nobody has to sign it

B
Because it is always only for services, not goods

C
Because there is no date written on it

D
Because it does not include the typical requirements of a contract such as offer, acceptance and consideration

Note: Answer not sure
1. Report

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Question: Which of the following is a characteristic of a certificate of deposit?

Question: Would a bank be allowed to pay someone from a personal account without a mandate from the customer?

Question: What would a person do if they wanted to have the facility to save money as well as issue checks?

Question: What does the term "Availability Float" imply?

Question: What is the ratio of bank reserves to bank deposits called?

Question: What is meant by the term "Redemption"?

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

Question: What is the signing of a check on its back by the payee referred to as?

Question: What is the process which the Federal Reserve uses to influence the availability and cost of money and credit called?

Question: Why is a negotiable instrument a "special contract"?