Topic 1 - Banking Institutions

What are the two primary functions of a Commercial Bank

• Selling & Buying Stocks

• Accepting Deposits & Giving Loans

• Regulating Currency & Acting As Advisors To The Government

• Performing Credit Control

Which one is not a function of a Central Bank ?

• Instructing Commercial Banks

• Regulating Currency

• Lending Funds to Other Banks

• Providing Letters of Reference

What do S & L Associations primarily offer ? (more than one answer is correct)

• Mortgages

• Loans

• Foreign Currency

• Saving Deposits Options

What is the borrowing rate?

• The rate offered by banks to borrowers

• The rate offered by banks to depositors

• The rate offered by the Central Bank when Commercial banks borrow funds

What is a Fixed Account

• An account that can not be accessed ever.

• An account that can not be accessed for a specific period of time

• An account from which money can be withdrawn at any time, depending on the balance.

• An account from which money can be withdrawn through check.

What loan is only offered to self-employed customers or businesses in order to meet their working capital needs ?

• Short-term Loan

• Cash Credit

• Long-term Loan

• Demand Loan

A _________ ________ is a combination of online banking and mobile banking.

This financial cooperative provides banking services to its members and employees. What is it ?

• S & L Associations

• Commercial Banks

• Digital Banks

• Credit Unions

______, _______, and ________ all offer options to save money. (There are three correct answers)

• Current Account

• Savings Account

• Cash Credit

• Fixed Account

S & L Association have to mortgage at least _____ of their assets.

• 40%

• 65%

• 70%

• 85%