Title Test bank - Bank Credit (Nhung) Questions.docx ✅

BANK CREDIT CHAPTER 1: AN OVERVIEW OF FUNDAMENTALS OF BANK CREDIT Easy questions 1. What is the primary function of a bank? A. To sell insurance B. To provide financial services such as accepting deposits and lending money C. To manufacture goods D. To operate stock markets 2. What is a checking account primarily used for? A. Long-term savings B. Day-to-day expenses and transactions C. Investing in stocks D. Earning high interest 3. What does FDIC stand for? A. Federal Deposit Insurance Corporation B. Federal Debt Insurance Corporation C. Financial Deposit Insurance Corporation D. Federal Digital Investment Corporation 4. Which of the following is a type of loan? A. Savings account B. Certificate of deposit C. Mortgage D. Checking account 5. What is the purpose of a savings account? A. To earn interest on deposited funds B. To pay bills online C. To buy stocks D. To transfer money between accounts 6. What is an interest rate? A. The fee paid for insurance B. The percentage of a loan amount charged for borrowing money C. The price of a stock D. The cost of opening a bank account 7. What is the term for the original amount of money borrowed or still owed on a loan, separate from interest? A. Principal B. Collateral C. Equity D. Premium 8. What is the role of a loan officer in a bank? A. To manage investment portfolios B. To evaluate and approve loan applications
C. To handle customer service inquiries D. To operate ATMs 9. What is collateral in banking terms? A. A type of bank account B. An asset that a borrower offers to a lender to secure a loan C. A fee charged for late payment D. The total amount of debt a person owes 10. Which of the following is considered a non-performing loan? A. A loan with a fixed interest rate B. A loan where the borrower has stopped making payments C. A loan with a low interest rate D. A loan that is paid off early 11. What does the term "liquidity" refer to in banking? A. The ability to earn high returns on investments B. The ease with which assets can be converted into cash C. The profitability of a bank D. The total amount of loans issued by a bank 12. What is a credit card? A. A card that allows purchases by borrowing money from the bank up to a certain limit B. A card linked to a savings account C. A card that provides rewards for travel D. A card used exclusively for online shopping 13. What is the main difference between a fixed-rate and an adjustable-rate mortgage (ARM)? A. Fixed-rate mortgages have a constant interest rate, while ARMs have interest rates that can change B. ARMs are always cheaper than fixed-rate mortgages C. Fixed-rate mortgages are only for short-term loans D. ARMs are only available for first-time homebuyers 14. What is a credit union? A. A for-profit financial institution B. A non-profit financial institution owned by its members C. A government agency D. A type of stock market 15. Which of the following is NOT a type of bank account? A. Checking account B. Savings account C. Credit card account D. Certificate of deposit (CD) 16. What is a bank's primary source of income? A. Service fees B. Interest from loans
C. Sales of financial products D. Government funding CHAPTER 2: CORPORATE AND BUSINESS LENDING Easy questions 1. What is a time deposit? A. A deposit that can be withdrawn anytime without penalty B. A deposit that cannot be withdrawn before a set date without penalty C. A deposit made in foreign currency D. A deposit that earns no interest 2. What is a bank's balance sheet? A. A document that lists all the loans given by the bank B. A financial statement showing the bank's assets, liabilities, and equity C. A report on the bank's marketing activities D. A list of all the employees of the bank 3. What is the purpose of a credit rating? A. To evaluate the creditworthiness of borrowers B. To calculate the interest on savings accounts C. To set the price of stocks D. To determine the fees for bank services 4. What is a bank's equity? A. The total amount of money the bank owes B. The bank's own funds contributed by the shareholders C. The interest earned on loans D. The fees charged for bank services 5. What does the term "asset management" refer to in banking? A. The process of managing a bank's expenses B. The management of investments on behalf of clients C. The management of customer service operations o D. The sale of bank-owned properties 6. What is a trust service in banking? A. A service that allows customers to write checks B. A service that manages assets for individuals or organizations C. A service that provides loans to businesses D. A service that insures deposits 7. What is a bank's capital? A. The total amount of money in customer accounts B. The funds provided by shareholders and retained earnings C. The interest earned on investments D. The total value of the bank's buildings 8. What is liquidity management in banking? A. Managing the bank's loan portfolio
B. Ensuring the bank has enough cash to meet its obligations C. Selling the bank's assets D. Increasing the bank's interest rates Medium questions: 9. What is the purpose of a bank's capital adequacy ratio (CAR)? A. To measure the bank's profitability B. To ensure the bank can absorb a reasonable amount of loss and complies with statutory capital requirements C. To calculate the interest on savings accounts D. To determine the bank's tax obligations 10. What is a loan loss provision? A. An amount set aside by banks to cover potential loan defaults B. The total interest earned from loans C. The fee charged for processing loans D. The amount of loan principal repaid 11. What is a syndicated loan? A. A loan provided by a single bank B. A loan provided by a group of banks to a single borrower C. A loan that is insured by the government D. A loan that has no collateral 12. What does the term "non-performing asset" (NPA) refer to? A. An asset that does not generate income B. A loan or advance where interest or principal repayment is overdue C. A type of investment that has high returns D. A financial product offered by the bank 13. What is the significance of the liquidity coverage ratio (LCR)? A. To ensure that banks maintain an adequate level of high-quality liquid assets B. To measure the bank's overall profitability C. To assess the bank's credit risk D. To calculate the bank's loan interest rates 14. What is Basel III? A. An international regulatory framework for banks to strengthen regulation, supervision, and risk management B. A local banking policy C. A type of bank account D. A method for calculating loan interest 15. What is a callable bond? A. A bond that can be redeemed by the issuer before its maturity date B. A bond that cannot be sold before maturity C. A bond that pays variable interest D. A bond that is insured by the government 16. What is credit risk? A. The risk that a bank's borrower or counterparty will fail to meet its obligations