Banking Terms - MCQs with answers - Part I

Banking Terms - MCQs with answers - Part I


1. What is the cost of credit expressed as a percentage on a yearly basis called?

a) APR
b) APY
c) WPI
d) None of these

View Answer / Hide Answer

ANSWER: a) APR

The Annual Percentage Rate (APR) is the simplified counterpart to the effective interest rate that the borrower will pay on a loan.



2. What is the percentage rate reflecting the total amount of interest paid on a deposit account called?

a) APR
b) APY
c) WPI
d) None of these

View Answer / Hide Answer

ANSWER: b) APY



3. In which type of banking, electronic financial transactions are done?

a) E-Banking
b) Internet Banking
c) M-Banking
d) Universal Banking

View Answer / Hide Answer

ANSWER: a) E-Banking

E-banking enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services.



4. Which one of the following helps the consumers protect their credit identities and recover from identity theft?

a) FACTA
b) FCRA
c) FDCPA
d) FOIA

View Answer / Hide Answer

ANSWER: a) FACTA

The Fair and Accurate Credit Transactions Act (FACTA) of 2003 is a United States federal law. It is passed by the United States Congress on November 22.



5. Which one of the following gives consumers the right to see their credit records and correct mistakes?

a) FACTA
b) FCRA
c) FDCPA
d) FOIA

View Answer / Hide Answer

ANSWER: b) FCRA

The Fair Credit Reporting Act (FCRA) is a Federal law established in 1971 and revised in 1997.



6. Which of the following is the amount of Funds borrowed by the government to meet the expenditures?

a) Fiscal Deficit
b) Current account
c) Fiscal policy
d) Public finance

View Answer / Hide Answer

ANSWER: a) Fiscal Deficit

A country's fiscal deficit is communicated as a percentage of its gross domestic product (GDP).



7. Which one of the following is a set of United State statutes added as Title VIII of the Consumer Credit Protection Act?

a) FACTA
b) FCRA
c) FDCPA
d) FOIA

View Answer / Hide Answer

ANSWER: c) FDCPA

The Fair Debt Collection Practices Act (FDCPA) was approved on September 20, 1977.



8. Which one of the following is open for public inspection and copying?

a) FACTA
b) FCRA
c) FDCPA
d) FOIA

View Answer / Hide Answer

ANSWER: d) FOIA

The Freedom of Information Act (FOIA) is a law that gives the right to access information from the federal government. It is described as the law keeps citizens know about their government.



9. Which one of the following belongs to the time when a company makes the first offering of the shares to the public?

a) CSO
b) IPO
c) REPO
d) WTO

View Answer / Hide Answer

ANSWER: b) IPO

Initial Public Offering (IPO) or stock market launch is a type of public offering. A private company transforms into a public company through this process.



10. Which one of the following is a financial ratio that gives a measure of a company's ability to meet its financial losses?

a) Cash Reverse Ratio
b) Leverage Ratio
c) Statutory Liquidity Ratio
d) Loan-to-Value Ratio

View Answer / Hide Answer

ANSWER: b) Leverage Ratio

It is meant to evaluate a company's debt levels.


Post your comment

Related Content

Follow us

Related Topics
▲