Banking and Financial Systems Quiz

What is the primary objective of banks?

• To manage government funds

• To invest in stocks

• To keep money safe for customers

• To provide insurance services

What type of bank account allows immediate access to funds?

• Savings account

• Investment account

• Current account

• Fixed deposit account

What is a central bank primarily responsible for?

• Offering investment advice

• Overseeing monetary policy

• Providing loans to individuals

• Managing retail banking services

Which of the following is NOT a function of a central bank?

• Bank regulation

• Lender of last resort

• Currency issuance

• Providing personal loans

What is the definition of money?

• A loan from a bank

• Anything accepted as payment for goods or services

• A form of currency only

• A type of investment

What is the primary purpose of the financial system?

• To regulate interest rates

• To manage government debt

• To encourage saving and investment

• To provide insurance

Which type of bank focuses on serving local communities?

• Wholesale banks

• Commercial banks

• Investment banks

• Community banks

What is a characteristic of fiat money?

• Its value is backed by gold

• It has intrinsic value

• Its value comes from government decree

• It is a form of commodity money

What do brokers do?

• Buy and sell securities directly

• Facilitate the buying and selling of securities

• Provide loans to customers

• Manage investment portfolios

What is the role of financial intermediaries?

• To issue currency

• To regulate the stock market

• To connect savers with spenders

• To provide loans to the government