NATIONAL BPA BANKING AND FINANCE
EXAM QUESTIONS AND ANSWERS
Peer-to-peer payments
a. are issued by the federal government.
b. review information rather than make actual transactions.
c. allow for immediate money transfer from one person to another. d. allow
customers to conduct financial transactions on their bank's secure website. -
ANSWER c. allow for immediate money transfer from one person to another.
Money center banks
a. have no physical location or building.
b. control the money supply.
c. are found in small towns and rural areas.
d. are very large, often international banks, whose primary customers are
businesses, banks, and governments. - ANSWER d. are very large, often
international banks, whose primary customers are businesses, banks, and
governments.
Insurance that covers the bank from losses due to robberies or employee theft is
called a(n)
a. reserve requirements.
b. liability insurance.
c. mutual fund.
d. banker's blanket bond. - ANSWER d. banker's blanket bond.
Money placed in an account is called a
a. checking account.
b. deposit.
c. loan.
d. withdrawal - ANSWER b. deposit.
, Organizations that provide personal loans to individuals who may have poor
credit are called
a. consumer finance companies.
b. discount brokers.
c. securities firms.
d. business finance companies. - ANSWER a. consumer finance companies.
A financial institution that provides services primarily for consumers including
deposit accounts and personal loans is a(n)
a. investment bank.
b. commercial bank.
c. money center bank.
d. unit bank. - ANSWER b. commercial bank.
A service that provides funds to cover a check written on an account with
insufficient funds is called
a. overdraft protection.
b. surcharge service.
c. underwriting spread.
d. cash management protection. - ANSWER a. overdraft protection.
The stated cost to a borrower to borrow money is called the
a. discount rate.
b. prime rate.
c. amortized rate.
d. interest rate. - ANSWER d. interest rate.
Deposits that are kept back and not available to make loans are called
a. reserves.
b. aggregates.
c. commodity money.
d. representative money. - ANSWER a. reserves.
Which type of organization is owned by its members?
a. Commercial Bank
b. Savings Association
c. Online Bank
d. Credit Union - ANSWER d. Credit Union
EXAM QUESTIONS AND ANSWERS
Peer-to-peer payments
a. are issued by the federal government.
b. review information rather than make actual transactions.
c. allow for immediate money transfer from one person to another. d. allow
customers to conduct financial transactions on their bank's secure website. -
ANSWER c. allow for immediate money transfer from one person to another.
Money center banks
a. have no physical location or building.
b. control the money supply.
c. are found in small towns and rural areas.
d. are very large, often international banks, whose primary customers are
businesses, banks, and governments. - ANSWER d. are very large, often
international banks, whose primary customers are businesses, banks, and
governments.
Insurance that covers the bank from losses due to robberies or employee theft is
called a(n)
a. reserve requirements.
b. liability insurance.
c. mutual fund.
d. banker's blanket bond. - ANSWER d. banker's blanket bond.
Money placed in an account is called a
a. checking account.
b. deposit.
c. loan.
d. withdrawal - ANSWER b. deposit.
, Organizations that provide personal loans to individuals who may have poor
credit are called
a. consumer finance companies.
b. discount brokers.
c. securities firms.
d. business finance companies. - ANSWER a. consumer finance companies.
A financial institution that provides services primarily for consumers including
deposit accounts and personal loans is a(n)
a. investment bank.
b. commercial bank.
c. money center bank.
d. unit bank. - ANSWER b. commercial bank.
A service that provides funds to cover a check written on an account with
insufficient funds is called
a. overdraft protection.
b. surcharge service.
c. underwriting spread.
d. cash management protection. - ANSWER a. overdraft protection.
The stated cost to a borrower to borrow money is called the
a. discount rate.
b. prime rate.
c. amortized rate.
d. interest rate. - ANSWER d. interest rate.
Deposits that are kept back and not available to make loans are called
a. reserves.
b. aggregates.
c. commodity money.
d. representative money. - ANSWER a. reserves.
Which type of organization is owned by its members?
a. Commercial Bank
b. Savings Association
c. Online Bank
d. Credit Union - ANSWER d. Credit Union
