Lending
Which of the following is usually the most significant source of bank income?
lending function
What life insurance plan has a savings element?
whole life insurance
Which bank service matches checks presented for payment to lists of issued checks ?
positive pay
Advertising a product at a low price and then informing a prospective purchaser that only a higher price alternative is now available is an example of:
bait-and-switch
Which of the following is a security feature that closes an online banking visit after a certain period of inactivity, such as 5 or 10 minutes?
a. automatic lockout
b. online banking limit
c. automatic session expiration
d. account security freeze
automatic session expiration
Which of the following loans is normally unsecured?
a. reverse mortgage loan
b. auto loan
c. home equity loan
d. credit card
d. credit card
What is the worth of money or assets currently in hand, at a specified time, if left to grow at a given rate?
future value
An employer assumes the investment risk in which type of employee benefit plan?
defined benefit plan
Gathering information about a product’s features and benefits occurs during:
prepurchase searching
What do banks establish to respond to threats to the security of their data, systems, employees, or facilities?
incident response programs
At what stage in the lending process do banks obtain and evaluate all available information to determine creditworthiness?
investigation
What form of planning should adults think about so that their assets and legal obligations are managed well and passed on to their selected beneficiaries?
estate planning
A draft payable on demand when presented to the drawee is a(n):
sight draft
Banks spend the largest percentage of their marketing budget on:
ads
What form or system of customer authentication are banks starting to use more for banking transactions?
a biometric system
Discriminating against prospective borrowers because of where they live is known as:
redlining
What kind of insurance protects homebuyers from loss when property ownership is questioned?
title insurance
What is an example of a capital market service provided to corporate customers?
structuring and distributing debt securities
What pillar of a market-driven strategy holds that banks that build value into products and services can attract more customers at higher prices?
profitability
Which act requires banks to develop security policies and procedures designed to protect customer account information and financial data?
Gramm-Leach-Bliley Act
A loan that is not guaranteed by any type of collateral is:
c. unsecured
What is a useful tool to assess one’s complete financial situation?
net worth worksheet
What instrument issued by a bank substitutes the credit standing of the bank for the credit standing of the importer (buyer) of goods?
letter of credit
What is the process of gathering information about customers and competitors?
profiling
Which consumer scam involves sending customers seemingly legitimate email requests over the Internet?
phishing