Banking Financial Awareness · General Awareness

Banking Services and Operations

1,373 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 Membership Fee?

  1. It is the fee that customer has to pay when he exceeds the credit limit

  2. It is the fee that the customer has to pay before getting the card

  3. It is nothing but the Annual Fee

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Membership fee and annual fee are synonymous in credit card terminology - it's the recurring fee cardholders pay for card ownership each year. Options A and B describe different concepts: exceeding credit limit triggers over-limit fees, and fees before getting a card are typically joining or enrollment fees, not membership fees.

Multiple choice technology mainframe

What is Balance Transfer?

  1. BT is transferring the current balance of one credit card to another credit card where the transferring to bank will provide some benefits

  2. BT is the process of checking the availability of sufficient funds available to cover the amount of transaction

  3. BT is the process of sharing the revenue between different financial institutions

  4. BT is the process of transferring balance in an account to another account where transferring bank will provide some benefits
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Balance transfer (BT) allows moving debt from one credit card to another, typically to take advantage of lower interest rates or promotional offers. Option B describes authorization/verification, C describes revenue sharing, and D incorrectly says BT is between accounts rather than between credit cards specifically.

Multiple choice technology mainframe

What are Bank cards & Retails Cards?

  1. Bank cards are issued to big organizations and corporations’ .Retails cards are issued to employees for travel and entertainment.

  2. Bank cards are means of obtaining short term loan for a purchase. Retail cards are financial instruments with some stored value.

  3. Bank Cards are issued by the banks eg: ICICI Credit Cards. Retail cards are issued by the Non-banks or private shopping malls eg: Private label cards

  4. Bank Cards and Retails cards are issued by the banks eg: ICICI Credit Cards
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Bank cards are issued by financial institutions like ICICI, HDFC, Axis etc. Retail cards (private label cards) are issued by non-bank entities like shopping malls, retail chains, or specific brands for use at their locations. Option A incorrectly describes corporate cards, B mischaracterizes both card types, and D wrongly states retail cards come from banks.

Multiple choice technology mainframe

What is Card Association/Interchange in Cards Domain? Give some examples?

  1. It is a payment scheme like American Express.

  2. It is a network through which the authorization takes place. Eg: Mastercard, Visa, Amex, etc.,

  3. It is a financial service which helps card holders to make payment for services or products to obtain cash eg: credit cards, debit cards etc

  4. It is a payment system which facilitates to pay and keep track of expenses.eg: Charge Cards
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Card associations/interchanges are the networks that route authorization and settlement transactions between issuers and acquirers. Examples include Visa, Mastercard, Amex, Discover. Option A only names one association, C describes general card products, and D describes charge card products - not the network infrastructure itself.

Multiple choice technology mainframe

What is On-Us cards?

  1. Issuer & Acquirer are different.

  2. Issuer & Acquirer are same.

  3. Issuer is tied up with any social service group

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

On-us transactions occur when the issuer and acquirer are the same bank - the cardholder and merchant use the same financial institution. This simplifies processing and often has lower fees. Option A describes off-us transactions (different institutions), C is unrelated, and D is incorrect.

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 mainframe

What is Billing Cycle/Date?

  1. It is the date a particular transaction (retail/cash) was done.

  2. It is the day of the every month on which the account will get cycle and the statement will get generated for that particular month.

  3. It is the day every year on which the e-statement for a particular account is generated.

  4. It is the day the account was opened.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Billing Cycle/Date is the specific day each month when a credit card account's statement cycle closes and the monthly statement is generated. All transactions within this cycle period appear on that statement. Option A is incorrect because it refers to individual transaction dates, not the billing cycle. Option C wrongly describes it as an annual event. Option D confuses the billing cycle with the account opening date, which are separate concepts.

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

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.