Financial institutions and services

Financial Institutions and Services Quiz

1. Which of the following is NOT a primary function of a commercial bank?
   • Accepting deposits
   • Providing loans
   • Issuing currency
   • Transferring funds
2. What is the primary role of a cooperative bank?
   • To maximize profits for shareholders
   • To provide financial services to its members at competitive rates
   • To regulate the money supply in the economy
   • To invest in high-risk ventures
3. Which financial institution specializes in providing long-term loans for infrastructure projects?
   • Commercial bank
   • Development bank
   • Insurance company
   • Stock exchange
4. What is the main purpose of a stock exchange?
   • To store gold and other valuables
   • To facilitate the buying and selling of company shares
   • To regulate the banking sector
   • To provide loans to small businesses
5. Which of the following is NOT a type of insurance?
   • Life insurance
   • Health insurance
   • Property insurance
   • Investment insurance
6. What is the primary function of a pension fund?
   • To provide retirement income to its members
   • To invest in government bonds
   • To offer loans to students
   • To insure against natural disasters
7. Which financial institution helps individuals and businesses manage their investments?
   • Credit union
   • Investment bank
   • Microfinance institution
   • Pawn shop
8. What is the main difference between a debit card and a credit card?
   • A debit card is linked to a savings account, while a credit card is linked to a line of credit
   • A debit card is used for making investments, while a credit card is used for making purchases
   • A debit card is issued by the government, while a credit card is issued by a private bank
   • A debit card has no fees, while a credit card has annual fees
9. What is the purpose of financial regulation?
   • To protect consumers and ensure the stability of the financial system
   • To increase profits for banks and other financial institutions
   • To restrict access to credit
   • To eliminate competition in the financial market
10. Which of the following is an example of a non-banking financial institution?
    • Commercial bank
    • Insurance company
    • Investment bank
    • All of the above