Banking Quiz

What is the primary role of a bank?

• To keep money safe for customers

• To sell insurance

• To invest in stocks

• To provide financial advice

What type of bank offers services to businesses and governments?

• Retail Banks

• Central Banks

• Commercial Banks

• Building Societies

What is a central bank responsible for?

• Managing the monetary policy of a country

• Lending money to individuals

• Offering credit cards

• Providing mortgages

What is interest?

• A type of savings account

• A penalty for overdrawing

• A charge for borrowing money

• A fee for using a debit card

What is an overdraft?

• A method of transferring money

• A savings account feature

• An agreement to spend more than the account balance

• A type of loan for buying a house

What distinguishes a Direct Debit from a standing order?

• Direct Debits require prior notice of amounts

• Standing orders are set up by the bank

• Standing orders can change amounts

• Direct Debits are always the same amount

What is a sort code?

• A type of bank account

• A 6-digit number identifying a bank

• A method of transferring funds

• A type of loan

What is ethical banking focused on?

• Providing loans without interest

• Investing in high-risk stocks

• Promoting equity and sustainable development

• Maximizing profits

What is microfinance?

• Lending to large corporations

• Investing in government bonds

• Providing small loans to individuals or businesses

• Offering credit cards to students

What is the main purpose of retail banks?

• To manage national currency

• To lend money to governments

• To accept deposits and lend money for profit

• To provide investment advice