Retail Banking Industry and Processes, Finance And Accounting

Question: What is the primary function of a bank?
A
To act as a payment agent for its customers, and to borrow and lend money

B
To help people buy cars

C
To hide money from the IRS

D
To allow the rich to get richer

Note: Answer not sure
1. Report
Question: What is meant by the term "risk based pricing"?
A
Charging a higher rate from customers more likely to default

B
Pricing the online services of a bank high

C
Charging a higher rate from high net worth customers to capitalize on their wealth

D
Charging higher bank fees from customers based on their income

Note: Answer not sure
1. Report
Question: What does the term "Straight Paper" denote?
A
It is another name for a bond

B
It is another term for cash

C
It is a method used for depositing checks

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

Note: Answer not sure
1. Report
Question: What is a holder in due course?
A
The payee of a negotiable instrument

B
The drawee of a negotiable instrument

C
An innocent party who purchases a negotiable instrument without any defect in the instrument or any notice of dishonor.

D
The writer of a check

Note: Answer not sure
1. Report
Question: What is the term which describes illegally benefiting from float e. g. by depositing and drawing checks between accounts at two or more banks?
A
Floating

B
Rejecting

C
Kiting

D
Stocking

Note: Answer not sure
1. Report
Question: What type of account would someone put their money into if they wanted to earn a high rate of return and not to have access to their money for a fixed period e.g. 90 days?
A
A certificate of deposit

B
A checking account

C
A savings account

D
A stock account

Note: Answer not sure
1. Report
Question: What is "Negotiable Order of Withdrawal Account" i.e. NOW Account, another name for?
A
A mortgage loan

B
A checking account with no fees

C
A checking account that earns interest

D
A savings account

Note: Answer not sure
1. Report
Question: What can the FDIC do to a member bank if the bank fails to comply with the set standards?
A
Send a letter to the Congress

B
Stop insuring that bank's customers

C
Declare the bank insolvent and take over its management

D
Close down the bank

Note: Answer not sure
1. Report
Question: What type of account would someone who wants to earn a high rate of interest and does not intend to have many transactions open?
A
A checking account

B
A savings Account

C
A mortgage loan

D
A money market account

Note: Answer not sure
1. Report
Question: How does a bank make money by providing currency exchange services to its customers?
A
By charging the customers a slightly higher exchange rate than the rate it pays

B
By cheating the customers on the exchange rate

C
By forcing them to deposit the money in their bank

D
By asking the customers to introduce five friends to the bank as customers

Note: Answer not sure
1. Report

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Question: What is the primary function of a bank?

Question: What is meant by the term "risk based pricing"?

Question: What does the term "Straight Paper" denote?

Question: What is a holder in due course?

Question: What is the term which describes illegally benefiting from float e. g. by depositing and drawing checks between accounts at two or more banks?

Question: What type of account would someone put their money into if they wanted to earn a high rate of return and not to have access to their money for a fixed period e.g. 90 days?

Question: What is "Negotiable Order of Withdrawal Account" i.e. NOW Account, another name for?

Question: What can the FDIC do to a member bank if the bank fails to comply with the set standards?

Question: What type of account would someone who wants to earn a high rate of interest and does not intend to have many transactions open?

Question: How does a bank make money by providing currency exchange services to its customers?