01The maximum FDIC insurance limit per depositor, per bank, per ownership category is:
- A. $100,000
- B. $250,000
- C. $500,000
- D. Unlimited
Reveal answer
B. The limit has been $250,000 since 2008; it applies per depositor, per insured bank, per ownership category.
02A wire transfer is best characterized as:
- A. Reversible, slow, low-cost
- B. Irreversible, same-day, moderate-cost
- C. Reversible, same-day, free
- D. Irreversible, slow, low-cost
Reveal answer
B. Wires are the classic same-day irreversible transfer with a $15–35 fee at most banks.
03A money-market fund at a brokerage is:
- A. A bank deposit insured by FDIC
- B. A brokerage product invested in short-term instruments
- C. A stock
- D. A certificate of deposit
Reveal answer
B. Money-market funds are securities, not deposits. They are protected by SIPC against broker failure, not by FDIC against loss.
04The efficiency ratio of a bank is:
- A. Loans divided by deposits
- B. Noninterest expense divided by revenue
- C. Net income divided by assets
- D. Revenue divided by employees
Reveal answer
B. Efficiency ratio measures operating cost against revenue. Below 55% is well-run; above 70% is trouble.
05The three risks in a maturity-transforming bank are:
- A. Credit, liquidity, interest-rate
- B. Fraud, market, operational
- C. Regulatory, reputational, cyber
- D. FX, commodity, equity
Reveal answer
A. Credit (the borrower does not repay), liquidity (depositors demand cash at once), and interest-rate (the spread compresses or reverses).
06For real-estate closings, the standard transfer rail is:
- A. ACH
- B. RTP
- C. Wire
- D. FedNow
Reveal answer
C. Same-day, irreversible, high-limit — the parties trade reversibility for finality.
07A neobank without its own charter typically holds customer deposits at:
- A. The Federal Reserve
- B. A sponsor bank
- C. The FDIC
- D. Its holding company
Reveal answer
B. Neobanks operate on top of a chartered sponsor bank; the sponsor bank holds the deposits and provides FDIC insurance.
08The right home for the household's emergency reserve is:
- A. The primary checking account
- B. A high-yield savings account, ideally at a second bank
- C. A brokerage account holding equities
- D. A rewards checking account with a high balance requirement
Reveal answer
B. Fully liquid, meaningful yield, and separated from operating funds — usually at a second institution for redundancy.
A short assessment of comprehension before advancing.