Features of Banking And Non-Banking Financial Institutions - SS1 Economics Past Questions & Answers - page 1

1

Which of the following is NOT a feature of banking institutions?

A

Accept deposits from customers

B

Provide payment services

 

C

Regulated by the central bank of the country

D

Offer insurance services

 

E

Federally insured by the government up to a certain amount

CORRECT OPTION: d
2

Which of the following financial services is NOT typically offered by banking institutions?

A

 Mortgages

 

B

Checking accounts

C

Personal loans

D

 Investment management

 

E

Business loans

CORRECT OPTION: d
3

Which of the following regulatory bodies oversees non-banking financial institutions in the United States?

A

 Federal Reserve

B

Securities and Exchange Commission

 

C

Financial Industry Regulatory Authority

D

Commodity Futures Trading Commission

 

E

National Credit Union Administration

CORRECT OPTION: b
4

Which of the following is a feature of both banking and non-banking financial institutions?

A

Accept deposits from customers

 

B

Provide payment services

 

C

Offer various types of loans

D

Regulated by the central bank of the country

 

E

Federally insured by the government up to a certain amount

CORRECT OPTION: b
5

What is the primary difference between banking and non-banking financial institutions?

 

 

Banking financial institutions accept deposits from customers and pay interest on those deposits, while non-banking financial institutions do not accept deposits from customers.

6

Why are banking institutions federally insured by the government?

 

Because of the volatile nature of currency and cash, banking institutions are federally insured by the government to make and accept payments.

Pages: