Test Bank For The US Banking System 3rd Edition by Center for Financial Training

Chapter 1

1. A bank is a not-for-profit organization.

a.

True

b.

False

ANSWER:

False

POINTS:

1

2. All federally chartered banks must be corporations.

a.

True

b.

False

ANSWER:

True

POINTS:

1

3. Commercial banks offer their services only to businesses.

a.

True

b.

False

ANSWER:

False

POINTS:

1

4. Record keeping is an important part of securing your money in a bank.

a.

True

b.

False

ANSWER:

True

POINTS:

1

5. Issuing credit cards is a form of bank lending.

a.

True

b.

False

ANSWER:

True

POINTS:

1

6. It is illegal for banks to charge higher interest rates for loans than they pay depositors.

a.

True

b.

False

ANSWER:

False

POINTS:

1

7. Generally speaking, banks offer customers fewer services today than they did 20 years ago.

a.

True

b.

False

ANSWER:

False

POINTS:

1

8. Interest on home-equity loans often is tax-deductible for consumers.

a.

True

b.

False

ANSWER:

True

POINTS:

1

9. A credit union is a not-for-profit organization.

a.

True

b.

False

ANSWER:

True

POINTS:

1

10. A loan company is not a financial intermediary because it does not receive deposits.

a.

True

b.

False

ANSWER:

False

POINTS:

1