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

A credit card contains

  1. card holder name

  2. card issuer bank name

  3. card acquirer bank name

  4. all of the above

  5. only (1) and (2)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Credit card has all the information.

Multiple choice

A visa card is an example of

  1. credit card

  2. debit card

  3. smart card

  4. both (1) and (2)

  5. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Visa card is a credit card. Visa card is not a debit card.

Multiple choice

Ravi Kumar and Sons, an HUF, maintain a current account. The Karta of the HUF dies and leaves behind three family members, i.e. his wife and two minor sons. How will you deal with the account?

  1. The bank will stop operations in the account

  2. The account can be operated by minor son being the male member.

  3. The account can be operated by widow being guardian of eldest male member to be called Karta.

  4. The account can be operated by any of the two sons.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The account can be operated by his widow, being guardian of the eldest male member to be called karta.

Multiple choice

________ facilitates the payment transaction between the internet customer and the merchant.

  1. Debit card

  2. Credit card

  3. ATM card

  4. Payment gateway

  5. Core Banking Solution
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Payment gateway facilitates the payment transaction between th internet customer and the merchant. Payment gateway is the way of authorizing credit card or other forms of electronic payments. Payment gateways help to protect sensitive information like credit card numbers and other account information by encrypting the data they transmit to merchants and payment processors.

Multiple choice

Which of the following is not used in banking?

  1. MICR

  2. OMR

  3. Plotter

  4. Switch

  5. Scanner
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Plotter is not used in banking. Plotter draws pictures on paper based on commands from a computer. Plotters differ from printers in that they draw lines using a pen. As a result, they can produce continuous lines, whereas printers can only simulate lines by printing a closely spaced series of dots. Multicolor plotters use different - coloured pens to draw different colours.

Multiple choice

Which of the following does not require authentication?

  1. Internet banking

  2. Telephone banking

  3. Debit Card

  4. (2) and (3)

  5. None of the above
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

None of the above does not require authentication. Authentication is a very important process in banking services. Authentication is required at every step in banking such as Internet banking, ATM card, debit card, credit card, etc.  Authentication is the process of determining whether someone or something is, in fact, who or what it is, declared to be. In private and public computer networks, authentication is commonly done through the use of logon passwords. Knowledge of the password is assumed to guarantee that the user is authentic.

Multiple choice

Which of the following is incorrect - a) PIN and password are same terms. b) ATMs are not connected to CBS system. c) Virtual keyboard is conneted via PS/2 port.

  1. Only (a)

  2. Only (b)

  3. Only (c)

  4. (a) and (b)

  5. (a), (b) and (c)
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

All of (a), (b) and (c) are false. a) PIN and password are not the same terms. Password is a combination of characters, numbers and special symbols whereas PIN (Personal Identification Number) is a combination of numbers assigned to ATM card or debit card. b) ATMs are connected to CBS (Core Banking Solution) system. Without a connection to CBS system ATMs cannot provide account services. c) Virtual keyboard is is not a hardware. Virtual keyboard is a keyboard displayed on screen to provide security. Virtual keyboard is an online application which substitutes the actual physical keyboard with a mouse. This virtual keyboard is a safeguard against risks in online banking.