QUESTION 1: MCQ

1. Provided that the bank is a financial intermediary, the primary service the bank offers in order to make profits is:
   1. Granting loans and advances to clients
   2. Investing in securities
   3. Holding interbank deposits
   4. Holding as much excess reserves as possible

2. Deposits at the bank are considered ______ of funds for the bank, while Bank Bonds and Borrowings are regarded as _____ of funds and loans as _____ of funds for the bank.

1. Sources, uses, sources
2. Uses, sources, sources
3. Sources, sources, uses
4. Sources, uses, uses

3. A letter of guarantee is:
   1. A payment undertaking
   2. A type of letter of credit
   3. A commitment on the bank only
   4. A payment instrument

4. When having a current account:
   1. No cheques can be written on the account
   2. Interest is calculated on a daily basis on the account balance
   3. A 7 days notice of withdrawal should be given
   4. A mandate from the customer - the account owner - needs to be obtained in order to perform a transfer of money to another bank account

5. Banks Savings products offered to customers are:
   1. Finance institutions and venture capital
   2. Life insurance and loan accounts
   3. Savings accounts and Certificate of Deposits
   4. Vaults and current accounts