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

ATMs are capable of

  1. accepting cash/cheque

  2. disbursing cash

  3. making inter-bank transfer

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

Correct Answer: All of the above

Multiple choice

Banking business mainly consists of

  1. lending

  2. borrowing

  3. purchasing

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

A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets.

Multiple choice

In real on-line banking,

  1. transactions are entered through the terminal and recorded immediately, but updations are done later on

  2. transactions are entered through the terminal and recorded immediately, but authentication, verification and updations are done later on

  3. transactions are entered through the terminal and then they are recorded, verified, authenticated and corresponding updations are reflected instantly.

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

The process of online banking follows this process. Transactions are entered through the terminal and then they are recorded, verified, authenticated and corresponding updations are reflected instantly.

Multiple choice

When more than one bank allows credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as

  1. participation

  2. consortium

  3. syndication

  4. multiple banking

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

In syndication, there is a lead bank or underwriting bank, which gives finance to the organisation. Two or more banks can be an underwriting bank, but leading bank will be only one. But, this is not in the case of consortium, where the borrower has to arrange the finance from different banks.

Multiple choice commercial studies single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

Single entry system is most popular for ____________.

  1. Sole trader

  2. Government

  3. Company

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

Normally Single entry system is maintained by small traders as it do not require special set of book-keeping and expert accounting knowledge. Hence, it becomes hassle free for traders to ascertain their profit of loss earned by the business through single entry system.

Multiple choice business organisation import and export procedure export trade procedures and formalities of exports and imports import and export

Which of the following documents are not required for obtaining an export license?

  1. IEC number

  2. Letter of credit

  3. Registration cum membership certificte

  4. Bank account number
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Letter of credit refers to a letter issued by a bank to another bank to serve as a guarantee for payments made to a specified person under a specified condition. Registration with export promotion council and registration with ECGC required for obtaining export license.

Multiple choice business organisation import and export procedure export trade procedures and formalities of exports and imports import and export

Which of the following documents are not required for obtaining an export license?

  1. IEC number

  2. Letter of credit

  3. Registration cum membership certificate

  4. Bank account number
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Letter of credit is an instrument issued by bank after request made by a foreign buyer that payment will be made to the exporter i.e. the beneficiary. It is useful where buyers and sellers do not know each other personally and are separated by distance. Hence, it is not required for obtaining an export license.

Multiple choice business organisation and correspondence bank 2 - accounts maintained by a bank functions and services of banks role of banks in economic development and modes of money transfer accounts and other services

IMPS transactions can be done in which of the following way(s)?

  1. Using Mobile number & MMID (P2P)

  2. Using Account number & IFS Code (P2A)

  3. Using Aadhaar number (ABRS)

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

IMPS is the process of transferring funds through mobile phones. IMPS stands for Immediate Payment Service. The service of IMPS is available 24/7 throughout the year including bank holidays. It offers an inter bank electronic fund transfer service through the use of mobile phones. IMPS can be done in the following ways:a) Using Mobile number & MMID (P2P) b) Using Account number & IFS Code (P2A)c) Using Aadhaar number (ABRS)

Multiple choice business organisation and correspondence bank 2 - accounts maintained by a bank functions and services of banks role of banks in economic development and modes of money transfer accounts and other services

Information system recommended by the study group is an important tool ______________.

  1. to determine the quantum of credit

  2. to watch end-use of credit

  3. to detect any incipient sickness to facilitate taking timely action

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

D.

A group decision support system is an interactive computer-based system. 

It facilitates a number of decision-makers who are working together in a group to find solutions to problems that are unstructured in nature. 

They take input from multiple users interacting simultaneously with the systems to arrive at a decision as a group. Also, the tools and techniques provided by them improve the quality and effectiveness of the group meetings.

Multiple choice business organisation and correspondence bank 2 - accounts maintained by a bank functions and services of banks role of banks in economic development and modes of money transfer accounts and other services

Electronic banking is a form of Virtual Banking ________.

  1. True

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

Electronic banking is a form of Virtual Banking- this is a true statement. Under e-banking, account holders get unlimited access to their account. Through e-banking customers can conduct transactions electronically. E-banking is a product designed for the purpose of online banking.

Multiple choice business organisation and correspondence bank 2 - accounts maintained by a bank functions and services of banks role of banks in economic development and modes of money transfer accounts and other services

__________is the process of transfering funds through mobile phones.

  1. ECS

  2. IMPS

  3. CTS

  4. NEFT
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

IMPS is the process of transferring funds through mobile phones. IMPS stands for Immediate Payment Service. The service of IMPS is available 24/7 throughout the year including bank holidays. It offers an inter bank electronic fund transfer service through the use of mobile phones.

Multiple choice business organisation and correspondence bank 2 - accounts maintained by a bank functions and services of banks role of banks in economic development and modes of money transfer accounts and other services

The timing of RTGS services at banks varies depending on the customer timings of the branch/bank.

  1. True

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

The timing of RTGS services at banks varies depending on the customer timings of the branch/bank- this is a true statement. Minimum amount required to transfer funds through RTGS is Rs 2,00,000. RTGS stands for Real Time  Gross Settlement. It is an electronic form of funds transfer. The transmission takes place on a real time basis. The transfer of funds with RTGS is done for minimum of Rs. 2 lakh.