How Well Do You Know The Types Of Financial Services?

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Questions: 10 | Attempts: 483 | Updated: Nov 16, 2023

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How Well Do You Know The Types Of Financial Services? - Quiz

Do you know what financial services are? Are you familiar with its types? Why don't you try this quiz on types of financial services and see how much you know and understand? When it comes to financial services, a long list comes up to mind. If you think you know it well, this quiz is going to be an interesting and easy one for you. All the best for a perfect score!

Questions and Answers

1.

Which of the following is a type of financial service?
- A.
  
  Banking
- B.
  
  Insurance
- C.
  
  Mutual Funds
- D.
  
  All of the above
Correct Answer
D. All of the above

Explanation
All of the options listed - banking, insurance, and mutual funds - are types of financial services. Banking involves providing various financial services such as accepting deposits, lending money, and issuing credit cards. Insurance is a service that provides financial protection against potential risks or losses. Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities. Therefore, all three options are considered types of financial services.

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2
0
2.

U.S. Financial Services, Inc. is a(an) _______ financial service.
- A.
  
  Dependent
- B.
  
  Independent
- C.
  
  Supported
- D.
  
  None of the above
Correct Answer
B. Independent

Explanation
U.S. Financial Services, Inc. is an independent financial service because it operates autonomously and is not controlled or influenced by any other entity. It is not dependent on any external factors or support, and it stands alone as its own entity in the financial services industry.

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3.

Credit card is an example of financial service.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
This statement is true because a credit card is indeed an example of a financial service. A credit card allows individuals to borrow money from a financial institution up to a certain credit limit, which they can then use for purchases or cash advances. It provides a convenient and widely accepted method of payment, allowing users to make transactions without carrying cash. Additionally, credit cards often come with various benefits and rewards programs, making them a popular choice for consumers.

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4.

Insurance is a financial service in which one has to pay ________ for unforeseen reasons.
- A.
  
  Monthly
- B.
  
  Annually
- C.
  
  Both A & B
- D.
  
  Either A or B
Correct Answer
D. Either A or B

Explanation
Insurance is a financial service that provides coverage for unforeseen events. The payment for insurance can be made either on a monthly basis or on an annual basis, depending on the individual's preference and the terms of the insurance policy. Therefore, the correct answer is either A or B, as both options are valid methods of payment for insurance.

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5.

Who manages the mutual funds' institutions?
- A.
  
  Beginners
- B.
  
  Students
- C.
  
  Professionals
- D.
  
  Teachers
Correct Answer
C. Professionals

Explanation
Professionals manage the mutual funds' institutions. This is because managing mutual funds requires expertise in finance and investment strategies. Professionals in the field have the necessary knowledge and experience to make informed decisions about which securities to invest in and how to maximize returns for investors. They also have the skills to analyze market trends and manage risks effectively. Therefore, professionals are the most suitable candidates to handle the management of mutual funds' institutions.

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6.

Who does a financial advisory service help?
- A.
  
  People
- B.
  
  Organizations
- C.
  
  Both A & B
- D.
  
  None of the above
Correct Answer
C. Both A & B

Explanation
A financial advisory service helps both individuals (people) and organizations. Individuals may seek financial advice for personal financial planning, investment decisions, retirement planning, or tax planning. Organizations, such as businesses or non-profit organizations, may seek financial advice for budgeting, fundraising, investment strategies, or financial risk management. Therefore, the correct answer is "Both A & B" as financial advisory services cater to the needs of both individuals and organizations.

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7.

Why are financial services important? (select that apply)
- A.
  
  Beneficial for government
- B.
  
  Economic growth
- C.
  
  Promotes saving
- D.
  
  Promotes leisure spending
Correct Answer(s)
A. Beneficial for government
B. Economic growth
C. Promotes saving

Explanation
Financial services are important for several reasons. Firstly, they are beneficial for the government as they contribute to the overall economic growth of a country. Financial services provide the necessary infrastructure for businesses to thrive, create jobs, and generate tax revenue. Additionally, these services promote saving among individuals, encouraging them to set aside money for future needs and investments. This, in turn, helps to stimulate economic growth and stability. Therefore, financial services play a vital role in supporting the government, driving economic growth, and promoting saving habits among individuals.

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8.

Which financial service covers business risks and the risks caused by natural calamities?
- A.
  
  Insurance
- B.
  
  Banking
- C.
  
  Mutual Fund
- D.
  
  All of the above
Correct Answer
A. Insurance

Explanation
Insurance is the correct answer because it is a financial service that provides coverage for business risks and risks caused by natural calamities. Insurance policies are designed to protect individuals, businesses, and organizations from potential financial losses due to unforeseen events such as accidents, property damage, or natural disasters. By paying regular premiums, policyholders transfer the risk to the insurance company, which then provides compensation or coverage in case of a covered event. This helps businesses and individuals mitigate the financial impact of unexpected events and provides them with peace of mind.

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9.

Which is the regulatory authority for the insurance companies in US?
- A.
  
  IRDA
- B.
  
  Insurance Facility Office
- C.
  
  Federal Insurance Office
- D.
  
  None of the above
Correct Answer
C. Federal Insurance Office

Explanation
The Federal Insurance Office is the regulatory authority for insurance companies in the US. They oversee and monitor the insurance industry to ensure compliance with federal laws and regulations. They also provide recommendations and advice to the US government on insurance-related matters.

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10.

The financial services enable the government to raise both short-term and long-term funds to meet _________ expenditure.
- A.
  
  Revenue
- B.
  
  Capital
- C.
  
  Regular
- D.
  
  Both A & B
Correct Answer
D. Both A & B

Explanation
The financial services enable the government to raise both short-term and long-term funds to meet revenue and capital expenditure. Revenue expenditure refers to the day-to-day expenses of the government, such as salaries and maintenance costs. Capital expenditure, on the other hand, is used for long-term investments like infrastructure development or purchasing assets. By providing financial services, the government can access funds for both types of expenditures, ensuring the smooth functioning of the economy.

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Current Version
Nov 16, 2023

Quiz Edited by
ProProfs Editorial Team
Dec 21, 2022

Quiz Created by
Sophia Smith

How Well Do You Know The Types Of Financial Services?

Which of the following is a type of financial service?

U.S. Financial Services, Inc. is a(an) _______ financial service.

Credit card is an example of financial service.

Insurance is a financial service in which one has to pay ________ for unforeseen reasons.

Who manages the mutual funds' institutions?

Who does a financial advisory service help?

Why are financial services important? (select that apply)

Which financial service covers business risks and the risks caused by natural calamities?

Which is the regulatory authority for the insurance companies in US?

The financial services enable the government to raise both short-term and long-term funds to meet _________ expenditure.