Retail Banking Industry and Processes
 

  1. Question: What is the purpose of the FDIC?

    A
    It provides deposit insurance guaranteeing the safety of retail banking customers' money

    B
    It acts as a clearing house for all checks

    C
    It provides loans to banks

    D
    It provides loans to consumers

    Note: Answer not sure
    1. Report

  2. Question: What would happen if Mr. X made a check out to Mr. Y for $100, who indorsed the check, and then sold it for $50 to Mr. Z? Would Mr. Z be able to cash the check?

    A
    Yes, but only for $50, not the face value of $100

    B
    Yes, for the amount of $100

    C
    No, Mr. Z can not cash it since it was sold to him for less than the face value

    D
    No, since it was not issued to him

    Note: Answer not sure
    1. Report

  3. Question: Which of the following is a reason for a person to open an offshore account?

    A
    They are pressured into it by their family

    B
    They are required to by law

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

    D
    They think the onshore banking industry is about to collapse

    Note: Answer not sure
    1. Report

  4. Question: What is meant by "online banking"?

    A
    Using the internet to log in to and interact with your bank account

    B
    Going to the bank and talking to the teller

    C
    Using the ATM machine

    D
    Mailing checks to the bank for deposit

    Note: Answer not sure
    1. Report

  5. Question: Which of the following is a benefit of an offshore bank account?

    A
    Ability to walk into a local branch of the bank

    B
    Low taxation on the transactions related to the offshore account

    C
    Debit cards

    D
    Customer service

    Note: Answer not sure
    1. Report

  6. Question: What does the term "Nostro Account" imply?

    A
    It is another term for an Escrow Account

    B
    It is a banking term to describe an account a bank holds with a bank in a foreign country, usually in the currency of that country

    C
    It is an account with a bank from which any part of the balance may be withdrawn on demand

    D
    It is an account with two or more authorized signatories

    Note: Answer not sure
    1. Report

  7. Question: Why do banks offer debit cards and off-site ATM machines?

    A
    To encourage people to shop and go into debt

    B
    For the convenience of their customers in order to build brand loyalty

    C
    Because it is required by law

    D
    Because everyone else does it

    Note: Answer not sure
    1. Report

  8. Question: What does FDIC stand for?

    A
    Financial Deposit Insurance Company

    B
    Federal Draft Insurance Company

    C
    Financial Draft Insurance Corporation

    D
    Federal Deposit Insurance Corporation

    Note: Answer not sure
    1. Report

  9. Question: What is meant by the term "Discrete Compounding"?

    A
    Paying interest on loans made to other banks

    B
    The process of calculating interest and adding it to the existing principal and interest at the end of finite time intervals such as a day, a month or a year

    C
    Compounding interest only on high interest loans

    D
    The difference between the cost of money and the rate received on it

    Note: Answer not sure
    1. Report

  10. Question: Which of the following is a risk with having money in a bank?

    A
    The bank might close down

    B
    There is no insurance mechanism in place on banks

    C
    The US dollar might crash

    D
    There is a run on the banks during turbulent economic times, due to which banks may be unable to give customers all of their money on demand

    Note: Answer not sure
    1. Report
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