Banking Financial Awareness · General Awareness

Banking Services and Operations

1,239 Questions

Banking Services and Operations cover the fundamental principles of financial institutions, including credit markets, money supply, and risk management. It also addresses various transaction methods and account types used by businesses. This topic is crucial for candidates preparing for banking and insurance recruitment examinations.

Banking AbbreviationsCredit Market OperationsMoney Supply MetricsRisk Management MeasuresForeign Exchange RulesDigital Banking Technology

Banking Services and Operations Questions

Multiple choice technology mainframe

What is Off-Us cards?

  1. Issuer & Acquirer are different.

  2. Issuer & Acquirer are same.

  3. Issuer, Acquirer and Network are different.

  4. None of the above.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In card payment terminology, 'Off-Us' refers to transactions where the card issuer and merchant acquirer are different entities. When a customer uses their card at a merchant whose bank is different from the card-issuing bank, it's an off-us transaction. This contrasts with 'On-Us' where issuer and acquirer are the same. Option A correctly states this definition.

Multiple choice technology mainframe

What is Annual Fee?

  1. It is the Membership fee which is charged annually.

  2. It is the Service Charge billed based on the number of transactions done in a Year.

  3. It is the fee Merchant bank pays to Issuer Bank annually

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An annual fee is a recurring yearly membership charge for the privilege of holding and using a credit card. It is not calculated based on transaction volume (unlike service charges) nor is it an interbank fee paid between merchant and issuer banks.

Multiple choice technology mainframe

What is DD (Direct Debit)?

  1. It is the process paying the bills online every month through the customers saving’s account

  2. It is the process of paying the bills automatically after every transaction made by the customer through the customers saving’s account.

  3. It is the process of sending a automated notification to the customer reminding of the payment date and amount.

  4. It is the process paying the bills automatically every month through the customers saving’s account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Direct Debit is an automated financial arrangement where a customer authorizes a biller to withdraw funds directly from their bank account on a recurring monthly basis. Distractors confuse it with manual online bill pay, immediate per-transaction payments, or simple notification reminders.

Multiple choice technology mainframe

What is Affinity card?

  1. It is the card where the Issuer is tied up with any social service group (some orphanage, old-age home, CRY, etc.,) and for every transaction/s, certain % will be donated to the group.

  2. It is the additional card offered to the relatives of customer card and for every transaction/s, certain points will be awarded.

  3. It is the promotional card offered to a customer with good behavior history

  4. It is the card where the Issuer is tied up with any other branded firms, through which every body get benefitted (ICICI Big Bazaar card, Citibank Indian Oil card, etc.)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An Affinity card is a credit card where the issuer partners with a non-profit or charitable organization (like orphanages, old-age homes, or organizations like CRY). A percentage of every transaction made using the card is donated to the partnered social cause. Option B describes supplementary/add-on cards, not affinity cards. Option C refers to promotional cards, which are different. Option D describes co-brand cards, which involve partnerships with commercial brands rather than charitable organizations.

Multiple choice technology web technology

Who are the beneficiaries in using Credit Cards? How?

  1. Customer: - No need to carry money, safety, portable, etc.,Merchant: - Expands in wider area, increase in sales, promotions from acquirer, etc.,Bank/Issuer: - Installment Credit Card Association: - Interchange Fee

  2. Customer: - Interest on the purchase amount, charges, etc., Merchant: - Expands in wider area, increase in sales, promotions from acquirer, etc.,Bank/Issuer: - Authorized to decide on the repayment cycle

  3. Customer: - No need to carry money, safety, portable, etc.,Merchant: - Expands in wider area, increase in sales, promotions from acquirer, etc Bank/Issuer: - Interest on the purchase amount, charges, etc.,Network: - Interchange Fee

  4. Customer: - Earning on spending, safety, portable, etc.,Merchant: - Expands in wider area, increase in sales, promotions from acquirer, etc.,Bank/Issuer: - Interest on the purchase amount, charges, etc.,Network: - Interchange Fee
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Credit card beneficiaries: Customers get convenience/safety (not carrying cash), Merchants get expanded sales reach, Banks/Issuers earn interest/fees, Networks earn interchange fees. Option C correctly lists all four. Options A and B miss the Network beneficiary or misattribute roles. Option D incorrectly says customers 'earn on spending'. The claimed answer C is correct.

Multiple choice technology testing

Assume you are a test analyst working on Banking Project to upgrade an existing automated teller machine system to allow customers to obtain cash advances from supported credit cards. The requirments specification contains the following paragraph: "The system shall allow cash advaces of at least 500 dollers for all supported credit cards. The correct list of supported credit cards is American Express, Visa , Japan Credit Bank, Eurocard and Master Card." Which of the following statements are true?

  1. The paragraph is ambiguous in terms of supported cards.

  2. The paragraph indicates potential performance problems.

  3. The paragraph is unclear in terms of advance limits.

  4. The paragraph indicates potential usability problems.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The requirement is unclear because 'at least 500 dollers' [sic] is ambiguous - it could mean exactly 500, 500 minimum, or more. It doesn't specify if higher amounts are allowed or if there's a maximum. The supported cards list (American Express, Visa, Japan Credit Bank, Eurocard, Master Card) is explicit and unambiguous. There's no indication of performance or usability issues in this paragraph.

Multiple choice technology testing

Accounts that cannot be linked / Delinked to a new ECP I) Cancelled BSN and or BAN ii) Reserved and or Suspended BAN iii) Pending non pay - disconnects iv) Pending connections and Pending Transfers v) Consolidated accounts

  1. (i), (ii) and (iv)

  2. (i), (iii), (iv) and (v)

  3. (ii), (iii) and (v)

  4. (i), (ii), (iii), (iv) and (v)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Telecom and cable system profiles restrict linking or delinking accounts that are cancelled, pending disconnect, pending connections/transfers, or consolidated. Active status transitions prevent modifying these states during pending operations.

Multiple choice technology databases

PwC service lines to their clients are in the following categories in various countries

  1. Technology, Information, Communications and Entertainment

  2. Mortgage Processing Services

  3. 1 and 2 only

  4. Only 2
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

PwC serves the Technology, Information, Communications and Entertainment (TICE) sector (A). Option B 'Mortgage Processing Services' is not an industry vertical PwC serves - it's an operational service some firms provide. Option C '1 and 2 only' is incorrect because only A is valid. Option D is also incorrect. The question tests PwC industry vertical knowledge.

Multiple choice technology

What is the CMHDB data mainly used for

  1. Receive payments from customer

  2. Send bills to customer

  3. Business & Marketing purpose

  4. Card issuance & customer verification
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

CMHDB is primarily designed for business intelligence and marketing purposes such as customer segmentation, campaign targeting, and market analytics. It is not a transaction processing system for receiving payments or sending bills, nor is it used for card issuance or customer verification which are handled by separate operational systems.

Multiple choice technology

Which among the following is not a valid card type

  1. Charge

  2. Revolve

  3. Corporate

  4. System
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In credit card systems, valid card types typically include Charge (charge cards), Revolve (revolving credit cards), and Corporate (business cards). System is not a card type but rather a category or classification level within the card processing system.

Multiple choice technology

What is basic card

  1. Primary card for a customer

  2. Secondary card for a customer

  3. Teritiary card for a customer

  4. Card for a supplementary use
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A basic card is the primary card issued to the main customer account holder. Secondary or supplementary cards are additional cards issued to other users (family members, employees) linked to the same account. Option A correctly identifies the basic card as the primary one.

Multiple choice technology

CMHDB receives which of the following feeds from Globestar

  1. Demographic

  2. Financial transaction

  3. Financial Summary

  4. All the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

CMHDB receives multiple types of data feeds from Globestar including Demographic data (customer information), Financial transaction data (individual transactions), and Financial Summary data (aggregated financial information). All three feed types are ingested by CMHDB.

Multiple choice technology

CMHDB updates new cards on --- processing

  1. weekly

  2. monthly

  3. yearly

  4. all of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

CMHDB processes and updates new card information on a weekly processing cycle. This weekly batch processing is typical for card issuance systems where new cards are aggregated and processed in batches rather than real-time. Monthly and yearly are too infrequent for new card updates.