Test Questions Banking exam with correct ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answers
Which of the following is NOT a source of income for a bank? ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A. ||\\||\\
the interest earned by depositors ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
B. ||\\||\\
investments
C. ||\\||\\
loan income from interest ||\\||\\ ||\\||\\ ||\\||\\
D. ||\\||\\
fees for services - correct answer✔✔A ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The difference between what a bank pays in interest and what it
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
receives in interest is called - correct answer✔✔Spread
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
True or False: ||\\||\\ ||\\||\\ ||\\||\\
A Financial intermediary will not take a deposit for a consumer. -
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
correct answer✔✔False
||\\||\\ ||\\||\\ ||\\||\\
,Total assets minus total liabilities equals - correct
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answer✔✔Equity
The loosening of government control is called __________ -
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
correct answer✔✔Deregulation ||\\||\\ ||\\||\\
True or False: ||\\||\\ ||\\||\\ ||\\||\\
Return on equity is the ratio of net income to total assets. -
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
correct answer✔✔False ||\\||\\ ||\\||\\
About 60 percent of the deposit and loan business in the United
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
States is done by - correct answer✔✔Commercial Banks
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
People who put money into banks are called ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
________________ - correct answer✔✔Depositor ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
True or False: ||\\||\\ ||\\||\\
State Farm Insurance company is an example of a depository
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
institution. - correct answer✔✔False ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
, True or False: ||\\||\\ ||\\||\\ ||\\||\\
A bank is a not-for-profit organization. - correct
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answer✔✔False
A bank evaluates the ____________ of all customers who apply
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
for loans. - correct answer✔✔Creditworthiness
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Assume that a bank receives a $5,000 deposit from a customer ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
and lends it to another to start a small business. The bank pays a
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
straight 5% per year interest to the customer and charges 10%
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
per year for the loan. Calculate the spread for one year. - correct
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answer✔✔$250
||\\||\\ ||\\||\\
Banks move money between ||\\||\\ ||\\||\\ ||\\||\\
Answers: ||\\||\\
A. other banks ||\\||\\ ||\\||\\
B.banks and individual customers ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
C. governments ||\\||\\ ||\\||\\
D. all of the above - correct answer✔✔D
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
True or False: ||\\||\\ ||\\||\\ ||\\||\\
answers
Which of the following is NOT a source of income for a bank? ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A. ||\\||\\
the interest earned by depositors ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
B. ||\\||\\
investments
C. ||\\||\\
loan income from interest ||\\||\\ ||\\||\\ ||\\||\\
D. ||\\||\\
fees for services - correct answer✔✔A ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The difference between what a bank pays in interest and what it
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
receives in interest is called - correct answer✔✔Spread
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
True or False: ||\\||\\ ||\\||\\ ||\\||\\
A Financial intermediary will not take a deposit for a consumer. -
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
correct answer✔✔False
||\\||\\ ||\\||\\ ||\\||\\
,Total assets minus total liabilities equals - correct
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answer✔✔Equity
The loosening of government control is called __________ -
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
correct answer✔✔Deregulation ||\\||\\ ||\\||\\
True or False: ||\\||\\ ||\\||\\ ||\\||\\
Return on equity is the ratio of net income to total assets. -
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
correct answer✔✔False ||\\||\\ ||\\||\\
About 60 percent of the deposit and loan business in the United
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
States is done by - correct answer✔✔Commercial Banks
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
People who put money into banks are called ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
________________ - correct answer✔✔Depositor ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
True or False: ||\\||\\ ||\\||\\
State Farm Insurance company is an example of a depository
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
institution. - correct answer✔✔False ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
, True or False: ||\\||\\ ||\\||\\ ||\\||\\
A bank is a not-for-profit organization. - correct
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answer✔✔False
A bank evaluates the ____________ of all customers who apply
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
for loans. - correct answer✔✔Creditworthiness
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Assume that a bank receives a $5,000 deposit from a customer ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
and lends it to another to start a small business. The bank pays a
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
straight 5% per year interest to the customer and charges 10%
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
per year for the loan. Calculate the spread for one year. - correct
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answer✔✔$250
||\\||\\ ||\\||\\
Banks move money between ||\\||\\ ||\\||\\ ||\\||\\
Answers: ||\\||\\
A. other banks ||\\||\\ ||\\||\\
B.banks and individual customers ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
C. governments ||\\||\\ ||\\||\\
D. all of the above - correct answer✔✔D
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
True or False: ||\\||\\ ||\\||\\ ||\\||\\
