This quiz works best with JavaScript enabled. Home > Institutions > General > Economic Institutions – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Institutions Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who pays interest on a loan A) A lender. B) A borrower. C) A credit union. D) A creditor. Show Answer Correct Answer: B) A borrower. 2. What is Mutual fund? A) An investment in which investors pool their money to buy stock. B) An investment that you put in your checking account. C) Investment that you put in your swimming pool. D) Investment that you put in the ground. Show Answer Correct Answer: A) An investment in which investors pool their money to buy stock. 3. A woman borrows money to buy a house. If she does not repay the money the bank loaned her the bank will take her house. What is her house A) Financial institution. B) Collateral. C) Budget. D) Interest. Show Answer Correct Answer: B) Collateral. 4. What did eighteenth-century Scottish social philosopher Adam Smith state was the regulator of economy? A) Self-interest. B) Mixed economic systems. C) Monopolies. D) State-owned small businesses. Show Answer Correct Answer: A) Self-interest. 5. Who is the current President of the World Bank Group? A) Robert Zoellick. B) Christine Lagarde. C) David Malpass. D) Jim Yong Kim. Show Answer Correct Answer: C) David Malpass. 6. Which of the following is known as the Paper Gold? A) Demand Draft. B) USD. C) SDR. D) Pound. Show Answer Correct Answer: C) SDR. 7. Why World Bank was established? A) None below. B) To improve the adverse Balance of Payment situation of the nonmember countries. C) To reconstruct the economies damaged during the Second World War. D) To promote the International Trade. Show Answer Correct Answer: C) To reconstruct the economies damaged during the Second World War. 8. It is used to describe an industry, organization, or business that is not owned by a government. A) Private-owned. B) Public-owned. C) Both private and public owned. D) None of above. Show Answer Correct Answer: A) Private-owned. 9. What are high-risk loans? A) Loans that are given for risky home properties. B) Loans that are provided by commercial banks. C) Loans that are given to consumers with bad credit. D) Loans that are invested in high-risk stocks. Show Answer Correct Answer: C) Loans that are given to consumers with bad credit. 10. Who owns a credit union? A) Its members. B) Investment bankers. C) The government. D) Commercial banks. Show Answer Correct Answer: A) Its members. 11. System of roles and norms that governs the distribution and exercise of power in society A) Political institution. B) Economic institution. C) Family institution. D) Religious institution. Show Answer Correct Answer: A) Political institution. 12. Commercial banks earn money in all of the following ways EXCEPT: A) Investing in other companies. B) Charging fees for their services. C) Collecting interest on loans. D) Taking a percentage off of all deposits. Show Answer Correct Answer: D) Taking a percentage off of all deposits. 13. "Give and Take" A) Exchange. B) Transfer. C) Reciprocity. D) Redistribution. Show Answer Correct Answer: C) Reciprocity. 14. Which is an example of a secondary-sector job? A) Racher. B) Bank teller. C) Real estate agent. D) Steel factory worker. Show Answer Correct Answer: D) Steel factory worker. 15. A business organization that is owned by stockholders and treated by law as if it were an individual person A) Merger. B) Stock option. C) Corporation. D) Trust. Show Answer Correct Answer: C) Corporation. 16. Which of the following institutions is not part of the World Bank community? A) MIGA. B) IBRD. C) WTO. D) IFC. Show Answer Correct Answer: C) WTO. 17. Which account is used for a fixed period of time and allows restricted access to the funds? A) Checking Account. B) Savings Account. C) Money Market Deposit Account. D) Certificate of Deposit. Show Answer Correct Answer: D) Certificate of Deposit. 18. Established by a group of shareholders who have ownership in the corporation and is usually set up to make a profit and provide a return to its shareholders. A) Banks. B) Corporations. C) IMF-World Bank. D) Cooperatives. Show Answer Correct Answer: B) Corporations. 19. Refers to a system of economic exchange involving the centralized collection of goods A) Reciprocity. B) Redistribution. C) Transfers. D) Health. Show Answer Correct Answer: B) Redistribution. 20. What are two characteristics of a bank? A) They are non-profit organizations owned by members. B) They pay profits to their shareholders and can be used by anyone. C) They charge better interest rates on loans and have low fees. D) Deposits are insured for $ 100, 000 by the NCUA. Show Answer Correct Answer: B) They pay profits to their shareholders and can be used by anyone. ← PreviousNext →Related QuizzesInstitutions QuizzesEconomic Institutions Quiz 1Economic Institutions Quiz 2Economic Institutions Quiz 3Economic Institutions Quiz 4Economic Institutions Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books