Banks and Banking - Multiple Choice Test

International banking laws are written down in
1. the Basel accords
2. the World Bank
3. the European Central Bank
4. the Geneva agreement
The banking crisis in 2008 was caused by
1. housing prices
2. the stock market
3. developing countries
4. the American government
Investment banks
1. raise money for companies and businesses
2. let small savers open savings accounts
3. do not charge interest
4. only offer short-term loans
Automatic teller machines
1. let customers withdraw cash from their account, even if the bank is closed
2. lets customers take up loans
3. shows customers the rate of interest that banks charge
4. exchange foreign currencies
Development banks
1. help Third World countries
2. help customers find the right savings form
3. offer mortgages to customers
4. are only for foreign residents
The Federal Reserve bank is responsible for
1. money circulation in the USA
2. giving loans to American citizens
3. world wide interest rates
4. the development of new industries in the USA
Some banks sell
1. insurance
2. ATMs
3. houses
4. cars
Banks make a profit when they
1. collect more interest from people who take loans
2. give customers more credit cards
3. give savers more interest
4. offer fewer services
The centre of banking in the Middle Ages was in
1. Florence and Venice
2. London
3. New York
4. Rome
During the Great Depression
1. many banks went bankrupt
2. customers received more interest than ever before
3. the government made banks pay more money than they had
4. customers did not have to pay back mortgages
In most countries the government
1. tells banks how much money they can offer as loans
2. asks banks to give little interest to customers with savings accounts
3. lets banks decide how much money they can keep back as cash
4. tells banks how many customers they can have
If you want to buy a house
1. the bank offers you a mortgage
2. you get stocks from the bank to buy the house
3. the bank buys the house for you
4. the bank pays the interest for you