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 business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

______________ system allows an accountholder to operate their accounts from any branch.

  1. CBS

  2. CTS

  3. NEFT

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

CBS system allows an account holder to operate their accounts from any branch. CBS stands for Core Banking Solution. CBS can be defined as a technology platform which helps the customers to access their account from multiple delivery points, which includes different branches of the same bank, ATMs, internet and mobile banking, etc.

Multiple choice business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

Under e-banking, accountholders get unlimited access to their accounts.

  1. True

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

Under e-banking, account holders get unlimited access to their accounts- this is a true statement. 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 functions of commerical banks other services and modern trends in banking sector types of banks diversified banking functions

State with reasons whether the following statements are True or False.
In cash credit, customers account is credited by a bank with the sanctioned amount.

  1. True

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

Cash credit is a facility given to current account holder of the bank, to withdraw money even when there is no credit balance. 

There is a limit fixed to the borrowing. The interest on this facility is charged on the running balance and not on the borrowing limit.

Multiple choice commercial studies computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

To avoid invalid data input, a bank added an extra number at the end of each account number and subjected the new number to an algorithm. This techniques is known as _________. 

  1. dual read

  2. test for reasonableness

  3. check digit

  4. occurrence correction
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A check digit is a form of redundancy check used for error detection on identification numbers. It involves appending a digit calculated from the other digits in the number to ensure data integrity during input.

Multiple choice the wto and india world trade organisation international business commerce business studies

The major institutions offering assistance to exporters are ______________.

  1. Commercial Banks

  2. Reserve Bank and Cooperative Bank

  3. Export Credit and Guarantee Corporation (ECGC)

  4. Both (a) and (c)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The major institutions that offer assistance to exporters are the commercial banks that provide loan to these exporters at a very nominal rate and the Export Credit and Guarantee Corporation (ECGC) which was set up in 1957 by the Ministry of Commerce, Government of India to provide export credit insurance support to Indian exporters. 

Multiple choice commerce sources of business finance - 2 commercial paper non-institutional sources - short-term short term sources of finance

Which one of the following is not a merit of commercial paper?

  1. A commercial paper is sold on an unsecured basis.

  2. As its is a freely transferable instrument, it has high liquidity.

  3. Only financially sound and highly rated firms can raise money through commercial papers.

  4. Companies can park their excess funds in commercial paper
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

One of the demerits of commercial paper is that only financially sound and highly rated firms can raise money through commercial paper as it is an unsecured promissory note issued by a firm to raise funds for a short period of time.

Multiple choice commerce sources of business finance - 2 commercial paper non-institutional sources - short-term short term sources of finance

Commercial paper is an __________ method of financing.

  1. personal

  2. impersonal

  3. nominal

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

Commercial paper is an unsecured promissory note issued by a firm to raise funds for a short period. It is issued by one firm to another business firm, insurance companies, pension funds, and banks. Hence, Commercial Paper is an impersonal method of financing.

Multiple choice elements of business operative activities in business concept and types of commerce and industry nature of industries and commerce role, branches and types of industry and commerce business as an activity meaning and types of trade trade and aids to trade

What is true for Branch office?

  1. It is not allowed to carry on manufacturing activity on its own.

  2. It is allowed to carry on manufacturing on its own.

  3. It is allowed to carry on business without the permission of RBI.

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

Branch, bough, limb refer to divisions of a tree. Branch is general, meaning either a large or a small division. Bough refers only to the larger branches: a bough loaded with apples. A limb is a large primary division of a tree trunk or of a bough: to climb out on a limb.

A “branch”, by contrast, will be a part of a company, organised so as to conduct business on behalf of that company. ... A branch is not a separate corporate entity, but is typically run along lines that are similar in concept to those of a subsidiary company.

Multiple choice banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account banking and taxation banking maths

Which type of bank account is operated by businessman?

  1. fixed deposit

  2. save deposit

  3. recurring deposit

  4. current deposit
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Current deposit type of bank account is operated by businessman.

Current accounts are basically meant for businessman and are never used for the purpose of investments or savings.

Multiple choice organization of commerce and management cooperative organisation features, organisation, advantages and disadvantages of cooperative organisation cooperative societies cooperative society introduction to huf joint hindu family business

Village Service Co-operative Society and Urban Co-operative Banks are examples of ________________.

  1. Producers' co-operative societies

  2. Co-operative marketing societies

  3. Co-operative credit societies

  4. Consumer's co-operative societies
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Credit cooperative societies are established to provide financial assistance and credit facilities to their members, such as village service societies and urban banks.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

Financial security issued by banks operating outside U.S is classified as ______________.

  1. dollar bonds

  2. euro deposits

  3. Eurodollar market deposits

  4. euro bonds
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Eurodollar market deposits refer to deposits denominated in U.S. dollars held at banks or bank branches located outside the United States.

Multiple choice business organisation and correspondence middlemen 1 - wholesaler characteristics of wholesale trade kinds of mercantile agents or agent middlemen wholesale trade characteristics, necessity, services and survival of a wholesaler

In the case of corporate trade payments, the link between the banks of the buyer and the seller is the _________.

  1. EFT

  2. Lock boxes

  3. Automated clearing houses

  4. Wire transfers

  5. Both (A) and (D) above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In the case of corporate trade payments, the payment information from the payer is electronically transferred to an Automated Clearing House (ACH) which is a link between the banks of the buyer and the seller.

Multiple choice maturity value of recurring deposits banking maths

In which account, a depositor choses a fixed amount and deposits it for fixed period every month?

  1. saving account

  2. fixed account

  3. recurring deposit account

  4. current account
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In recurring deposit account, a depositor chooses a fixed amount and deposits it for fixed period every month.