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 book keeping and accountancy accounts of 'not for profit' concerns financial accounting and reporting prepration of income and expenditure account and balance sheet accounting procedure for not-for-profit organisations receipts and payments receipts and payments account

What is Subscription?

  1. Life time fees

  2. Membership fee

  3. Cash

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

Subscription is an agreement to receive something for providing access to something. Membership fees is a subscription as a person pays money to become a member of an organisation and is usually paid annually. 

Multiple choice business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

Which of the following is a characteristic of a mail order house?

  1. Huge capital requirement

  2. Elimination of middle man

  3. Presence of bad debt

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

The term "middleman" describes an intermediary between a producer and an end customer. In a typical distribution channel, the middleman is the wholesaler or the retailer. Manufacturers would eliminate the middleman by selling products directly to retail stores or consumers.

Multiple choice organization of commerce and management emerging modes of services e-advertising, e-marketing and e-security structure of business introduction to internet and e-commerce

The payment mechanism typical to e-business is __________________.

  1. cash on delivery

  2. cheques

  3. credit / debit cards

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

The payments in e-business can be done using non cash methods like credit cards or debit cards or by issuing cheques and also cash on delivery option is available as it will ensure the trust of customers on business ensuring no frauds.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

Not-for-Profit Organisations do not maintain_______account.

  1. capital

  2. cash

  3. bank

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

Non-for-Profit organisations do not maintain Capital account. They prepare income and expenditure account as profit and loss account, receipts and payments account as cash account and balance sheet. They do not maintain a capital account because of all the balance regarding the capital introduced and withdrawn are recorded in the balance sheet.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

Certificates of deposit (CD) help to mobilize a large amount of money for short periods.

  1. True

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

Certificates of deposit (CD) help to mobilize a large amount of money for short periods- this is a true statement. CDs are freelyy negotiable. It can be issued for a period of 91 days to 1 year. It is generally issued at a discount on the actual amount of deposits held.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

The intermediary between the customers and suppliers who perform financing and debt collection services is called a ________.

  1. Bank

  2. Factor

  3. Mutual fund

  4. NBFC

  5. Merchant Banker
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Factoring is a financial service under which the factor undertakes collection, accounting and management of the client's debt. Thus the factor is an intermediary between the supplier and the customers who performs financing and debt collection services.

Multiple choice business organisation capital market money markets participants in money market types of markets

Which one of the following is not a money market instrument?

  1. Commercial paper

  2. Participatory certificates

  3. Warrants

  4. Treasury Bills
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Money market instruments are short-term debt securities with high liquidity and low risk, such as Treasury Bills and Commercial Paper. Warrants are long-term options that give the holder the right to buy stock, making them capital market instruments, not money market instruments.

Multiple choice commercial studies budgeting distinction between funds flow and cash flow statements preparation of cash flow statement statement of changes in financial position

Cash comprises of ________________.

  1. Cash on hand

  2. Demand deposits with banks.

  3. Both (a) and (b)

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

Cash is money in the form of currency, which includes all bills, coins, and currency notes. A demand deposit is a type of account from which funds may be withdrawn at any time without having to notify the institution. 


Examples of demand deposit accounts include checking accounts and savings accounts.

Multiple choice commercial studies budgeting distinction between funds flow and cash flow statements preparation of cash flow statement statement of changes in financial position

Which of the following is not the example of cash equivalents?

  1. Treasury bills

  2. Commercial papers

  3. Debtors

  4. Money market funds
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cash equivalents are short-term, highly liquid investments. Debtors are current assets but are not considered cash equivalents because they are not readily convertible into a known amount of cash without significant risk.

Multiple choice commercial studies budgeting distinction between funds flow and cash flow statements preparation of cash flow statement statement of changes in financial position

Cash outflow on account of operating activities is a/an _______________.

  1. Sources of cash

  2. Application of cash

  3. Cash and bank balances

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

A cash outflow represents a decrease in cash, which is an application or use of cash for business operations.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

What does the letter 'M' denote in the term 'MFI' as used in financial sector?

  1. Mini

  2. Monetary

  3. Micro

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

Micro Finance Institution, also known as MFI  is an organization that offers financial services to low income populations especially in rural ares. These organisations are created for the upliftment of poor sectors of the economy.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

As per the reports published in various journals and newspapers, the ''small borrowers" in rural areas still prefer to take informal route for their credit needs. Which of the following is the "informal route" of credit in the financial sector?

  1. Credit cards

  2. Loan against gold from financial institute

  3. Debit cards

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

Informal credit routes in rural areas consist of non-institutional lenders such as moneylenders, landlords, traders, and relatives, who operate outside the formal banking regulatory framework.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

Which of the following products launched by most of the banks helps farmers in getting instant credit for various agricultural purposes?

  1. Kisan Credit Card

  2. Personal Loan

  3. Business loan

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

The Kisan Credit Card (KCC) is specifically designed to provide farmers with flexible and instant credit for agricultural inputs and other farming-related expenses.