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

Which of the following statements is incorrect about a savings account?

  1. It can be opened with a minimum initial deposit.

  2. There is no restriction on the number and amount of deposits and withdrawals.

  3. Nominal rate of interest is payable on a savings account.

  4. It is continuing in nature.

  5. Withdrawals can be made using a withdrawal form; issuing a cheque or by using an ATM card.

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 
 

Multiple choice

Specialised banks provide financial aid to industries, heavy turnkey projects and foreign trade. Which of the following is not a type of specialised bank?

  1. Foreign exchange banks

  2. Industrial banks

  3. Development banks

  4. Export import banks

  5. Cooperative banks

Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Cooperative Banks are governed by the provisions of State Cooperative Societies Act and meant essentially for providing cheap credit to their members. This is the correct answer as these are not specialised banks.

 
 

Multiple choice

The ATM stands for

  1. Automated Teller Machine

  2. Any time Money

  3. All time Money

  4. Any time machine

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

ATM stands for Automated Teller Machine, an electronic telecommunications device that enables customers of a financial institution to perform financial transactions.

Multiple choice

Which of the following statements is incorrect in respect of an ATM?

  1. A person can withdraw upto Rs 3000 per day from an ATM.
  2. Two or more banks can jointly establish an ATM.
  3. Through an ATM, the amount can be withdrawn at any day and at any time.

  1. 1

  2. 1 and 2

  3. 1, 2 and 3

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

Statement 1 is incorrect because ATM withdrawal limits have changed significantly over time and are now much higher than Rs 3000. Statements 2 and 3 are correct - banks can establish joint ATMs, and ATMs offer 24/7 service. The question asks for the INCORRECT statement.

Multiple choice

What are Hot Listed ATM Cards?

  1. Lost cards

  2. Vishwa Yatra cards

  3. American Smart Cards

  4. Cards issued by Corporates
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In banking terminology, a 'hot listed' card is one that has been reported lost or stolen and is therefore blocked from further use.

Multiple choice

Electronic Fund Transfer is a service of money transfer�

  1. From one city to another but in the branch of same bank.
  2. From one branch of a bank in a city to another branch in the same city.
  3. From one bank to another bank and from one branch of a bank in a city to other branch of another bank in another city.

  1. 1

  2. 2

  3. 1 and 2

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

Electronic Fund Transfer is a versatile system that allows transfers between branches of the same bank, across different banks, and across different cities.

Multiple choice

For which of the following purpose an Indian can use of his International Credit Cards subject to his eligibility of foreign currency?

  1. Meeting foreign travel expenses
  2. Subscription for foreign magazine
  3. Import of some goods

  1. 1

  2. 2

  3. 1 and 2

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

International credit cards can be used for foreign travel expenses and subscriptions, but using them for importing goods is generally subject to different regulatory frameworks (like FEMA) rather than standard personal card usage.

Multiple choice

At which place can a bank establish an Automated Teller Machine?

  1. At Bank premises or a nearby place.
  2. At railway platform or airport or petrol pump or hospital.
  3. In a train or factory or super bazaar.

  1. 1

  2. 1 and 2

  3. 1 and 3

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

Banks are permitted to install ATMs in a wide variety of locations to ensure customer convenience. These locations include bank premises, public transport hubs, airports, hospitals, and even commercial centers like factories or bazaars.

Multiple choice

Which is the first bank to establish an ATM and where was first ATM established?

  1. Barclays Bank—in 1967 in London

  2. Citi Bank—in 1965 in New York

  3. Hongkong & Shanghai Banking Corporation—in 1963 in Shanghai

  4. Di-Ichi-Kangyo Bank—in 1961 in Tokyo
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The first ATM was installed by Barclays Bank in Enfield, North London, on June 27, 1967. This historical milestone is widely documented in banking history.

Multiple choice

The full form of ECB is ………….

  1. External Commercial Borrowing.

  2. External Control Borrowing

  3. External Commercial Banking

  4. External Commercial booking
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

ECB stands for External Commercial Borrowing, which refers to loans in foreign currency availed by Indian residents from non-resident entities.