BANKING & FINANCIAL SYSTEMS |
COMPLETE STUDY GUIDE & PRACTICE
QUESTIONS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,What is a financial institution? A financial institution is any organization that provides services related to money.
What type of bank would a business owner likely use to A business owner would likely use a commercial bank to deposit daily receipts as
deposit daily receipts as well as pay invoices and well as pay invoices and payroll.
payroll?
How are money center banks chartered? Money center banks are chartered as national banks by the Federal Office of the
Comptroller of Currency (OCC).
What type of bank typically has only one or two Unit banks typically have only one or two locations.
locations?
PayPal is what type of payment system? Paypal is a type of P2P payment system.
bank a type of financial institution
charter a legal document issued by a federal and a state government that details how a
bank is to be operated and how it will be regulated
,depository institution a type of financial institution at which customers deposit money in order to
withdraw it later.
reserves a percentage of the bank's funds that is kept to ensure that money will be
available for customers and is not available for loans; AKA required reserves
retail bank a type of financial institution that provides services for customers, such as
deposit accounts, mortgages, auto and personal loans, and credit cards.
Internet bank a financial institution with no physical location or building that customers access
from anywhere with an Internet connection; AKA an online bank
commercial bank a financial institution owned by investors that focuses on business customers,
providing bank accounts along with specialized services such as foreign
exchange, investment services, and capital loans; some also provide limited
customer-oriented services such as personal checking and savings accounts.
money center bank a very large, often international bank whose primary customers are businesses,
other banks, and governments.
investment bank a financial institution that provides services for businesses, such as raising
capital through the stock market
, central bank a financial institution that oversees a nation's monetary system by regulating
banks, lending money when commercial bank are not able to, and controlling that
money supply.
unit bank a bank with one location, usually in a small town or rural area, that serves local
customers, tends to invest locally, and knows the challenges of the local
community
regional bank a type of financial institution that usually specializes in retail banking and does
not operate internationally; AKA interstate bank
national bank a financial institution with offices all over the country
automated teller machine (ATM) a computerized machine that provides a means of self-service banking; allows a
customer to perform basic banking activities, such as withdrawing cash, viewing
account balances, initiating cash advances, and making deposits
online banking allows customers to conduct financial transactions on a secure website operated
by their bank; AKA home banking
peer-to-peer payment (P2P) allows for an immediate money transfer from one person to another.
COMPLETE STUDY GUIDE & PRACTICE
QUESTIONS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,What is a financial institution? A financial institution is any organization that provides services related to money.
What type of bank would a business owner likely use to A business owner would likely use a commercial bank to deposit daily receipts as
deposit daily receipts as well as pay invoices and well as pay invoices and payroll.
payroll?
How are money center banks chartered? Money center banks are chartered as national banks by the Federal Office of the
Comptroller of Currency (OCC).
What type of bank typically has only one or two Unit banks typically have only one or two locations.
locations?
PayPal is what type of payment system? Paypal is a type of P2P payment system.
bank a type of financial institution
charter a legal document issued by a federal and a state government that details how a
bank is to be operated and how it will be regulated
,depository institution a type of financial institution at which customers deposit money in order to
withdraw it later.
reserves a percentage of the bank's funds that is kept to ensure that money will be
available for customers and is not available for loans; AKA required reserves
retail bank a type of financial institution that provides services for customers, such as
deposit accounts, mortgages, auto and personal loans, and credit cards.
Internet bank a financial institution with no physical location or building that customers access
from anywhere with an Internet connection; AKA an online bank
commercial bank a financial institution owned by investors that focuses on business customers,
providing bank accounts along with specialized services such as foreign
exchange, investment services, and capital loans; some also provide limited
customer-oriented services such as personal checking and savings accounts.
money center bank a very large, often international bank whose primary customers are businesses,
other banks, and governments.
investment bank a financial institution that provides services for businesses, such as raising
capital through the stock market
, central bank a financial institution that oversees a nation's monetary system by regulating
banks, lending money when commercial bank are not able to, and controlling that
money supply.
unit bank a bank with one location, usually in a small town or rural area, that serves local
customers, tends to invest locally, and knows the challenges of the local
community
regional bank a type of financial institution that usually specializes in retail banking and does
not operate internationally; AKA interstate bank
national bank a financial institution with offices all over the country
automated teller machine (ATM) a computerized machine that provides a means of self-service banking; allows a
customer to perform basic banking activities, such as withdrawing cash, viewing
account balances, initiating cash advances, and making deposits
online banking allows customers to conduct financial transactions on a secure website operated
by their bank; AKA home banking
peer-to-peer payment (P2P) allows for an immediate money transfer from one person to another.
