Banking & Finance

Banks, money, interest rates, and financial institutions.

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Banking & Finance

QUESTION NO 01
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Credit risk is the risk that?

Answer: A borrower fails to repay
Lenders assess default probability.
302 Quizzes
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QUESTION NO 02
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A central bank typically?

Answer: Issues currency and conducts monetary policy
It is the bankers’ bank and monetary authority.
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QUESTION NO 03
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Capital adequacy rules aim to?

Answer: Ensure banks hold enough capital against risks
They protect solvency and stability.
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QUESTION NO 04
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Credit risk is the risk that?

Answer: A borrower fails to repay
Lenders assess default probability.
302 Quizzes
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QUESTION NO 05
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Diversification aims to?

Answer: Reduce risk by spreading investments
Not all assets move together.
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QUESTION NO 06
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A mortgage is typically?

Answer: A loan secured by property
Property is collateral for the loan.
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QUESTION NO 07
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A debit card typically spends?

Answer: Funds from your own account
Unlike credit cards, it draws your balance.
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QUESTION NO 08
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Open market operations involve?

Answer: Central bank buying/selling securities to affect liquidity
A key monetary policy tool.
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QUESTION NO 09
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A share (stock) represents?

Answer: Ownership in a company
Shareholders have equity claims.
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QUESTION NO 10
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Inflation erodes?

Answer: The real value of money
Money buys less as prices rise.
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