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.

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Banking Services and Operations Questions

Multiple choice

Which of the following statements is not correct regarding Primary Co-operative Credit Societies?

  1. These Societies mobilize deposits from rural and urban areas and provide short-term loan to its members.
  2. Entrance Fees, Share Capital, Deposits from Public, Reserve Fund, and Deposits from other credit societies/co-operative banks are the major sources of Capital of these Societies.
  3. These Societies provide loans to their members only.

  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Multiple choice

Which of the following statements is correct regarding National Housing Bank?1.It is an apex bank for housing finance.

  1. It can make a plan for raising funds and providing loans for housing.
  2. It cannot raise its resources through issuance of debentures.

  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

NHB is the apex body for housing finance in India and has the authority to plan and raise funds. It is authorized to raise resources through various instruments, including debentures.

Multiple choice

Which of the following statements is correct regarding National Housing Bank?

  1. It provides refinance to scheduled commercial banks.
  2. It provides Guarantee and Underwriting services to Housing Finance institutions.
  3. It is not authorised to audit account books of Housing Finance institutions and scheduled commercial banks.

  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Only first and second statements are correct.

Multiple choice

Which institution provides long run finance to industries?

  1. GIC

  2. UTI

  3. LIC

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

GIC, UTI and LIC provide long run finance to industries. Besides the aid from development banks, such financial institutions provide long term finances to the companies and subscribe to their shares and debentures. 

Multiple choice

Many times we read in news-papers about Micro Finance. Today micro finance is the most preferred route to meet the credit requirements of which of the following sections of the society?

  1. High value individual customers

  2. Big Corporate Houses

  3. Industrial units upto the investment of Rs. 50 crores

  4. Poor and weaker sections of society
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Microfinance is specifically designed to provide small-scale credit to individuals and groups who lack access to traditional banking, primarily the poor and weaker sections of society.

Multiple choice

Banks in the past started many new delivery channels to make banking convenient for the customers. Which of the following is not a delivery channel adopted/developed by the banks?

  1. Automated Teller Machines (ATMs)

  2. Tele Banking

  3. Internet Banking

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

ATMs, tele-banking, and internet banking are all recognized digital or remote delivery channels for banking. 'Operational banking' is a general term for the internal functioning of a bank, not a customer-facing delivery channel.

Multiple choice

Micro Finance is an/a …………… of banking Services.

  1. Introduction Stage

  2. Stauration Stage

  3. Decline Stage or Research Stage

  4. All of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Microfinance is generally considered to be in the introduction or early growth stage in many developing banking markets as it seeks to reach unbanked populations.

Multiple choice

………… is first stage of Banking Service.

  1. Product development stage and Decline stage

  2. Growth Stage

  3. Maturity Stage

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

The introduction stage is the first phase of the product life cycle, where a new service or product is launched into the market.

Multiple choice

Match the following—

List-I (Stage of PLC)

  1. Introduction Stage

  2. Growth Stage

  3. Maturity Stage

  4. Saturation Stage

List-II (Bank's Product)

(a) Insurance Policy

(b) ATM Card

(c) Debit or Credit Card

(d) Counter Payment and Deposits

(e) Golden Card

  1. 1 (a) 2 (c) 3 (b) 4 (d)

  2. 1 (d) 2 (c) 3 (b) 4 (a)

  3. 1 (a) 2 (b) 3 (c) 4 (d)

  4. 1 (c) 2 (d) 3 (b) 4 (a)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This matches the evolution of banking products: Introduction (Insurance), Growth (ATM), Maturity (Debit/Credit), Saturation (Counter services).