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

One can deposit and withdraw small or big amount of money whenever they like in ________ account.

  1. fixed deposit

  2. recurring deposit

  3. saving deposit

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

In savings account, account holders can make saving deposits where they can deposit and withdraw small or big amount of money whenever they like.

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

A _______ encourages savings habit among salary earners as well as the ones who have fixed income.

  1. saving account

  2. fixed account

  3. recurring account

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

Savings account, as the name says pretty clearly, encourages a saving habit among the account holder, especially those with fixed salary income.

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

You can use a _______ to save your money and earn interest on it at the same time.

  1. savings account

  2. fixed deposit account

  3. recurring deposit account

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

$\Rightarrow$   You can use a $savings\,account$ to save your money and earn interest on it at the same time.

$\Rightarrow$   Savings accounts pay interest on money in your accounts. As a result, your bank will make small additions to your account, typically every month.
$\Rightarrow$   The interest rate depends on economic conditions and your bank's desire to compete with other banks.

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

________ is maintained by depositors who wish to put away a part of their saving to copy with future needs which also helps them to earn an income on their saving.

  1. recurring deposit account

  2. fixed deposit account

  3. savings bank account

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

Saving bank account is maintained by depositors who wish to put away a part of their saving to copy with future needs which also helps them to earn an income on their saving.

So correct answer will be option C

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

State the following statement is True or False
In fixed deposit account ,bank does not provide interest

  1. True

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

In fixed deposit account, the bank provides interest. The rate of interest may vary as per amount, period and bank to bank.

So, its a false statement.

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

_______ account is opened by the people with limited income.

  1. current account

  2. fixed account

  3. recurring account

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

Savings bank account are the accounts opened by depositors with fixed income or salary earners. It helps people with limited income to manage savings and encourage them to save monthly.

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

Banks do not pay any interest on __________accounts. Rather, banks impose service charges for running these accounts.

  1. Current Account Deposits or Demand Deposits

  2. Savings deposits

  3. Fixed deposits

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

Banks do not pay any interest on Current Account Deposits or Demand deposits accounts. Rather, banks impose service charges for running these accounts.

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

Portfolio management is a __________ function of a bank.

  1. secondary

  2. primary

  3. mandatory

  4. non-mandatory
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Portfolio management is a secondary function of a bank.
The banks also undertakes to purchase and sell the shares and debentures on behalf of the clients and accordingly debits or credits the account. This facility is called portfolio management.

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

The purpose of a _______ is to accumulate funds, there is no such restriction on deposits or incoming transfers.

  1. recurring deposit

  2. fixed deposit

  3. savings account

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

A saving account is an account in which account holder can earn a modest interest on the money he/she keeps  in a bank or other financial institution. There is no such restrictions on deposits of money. Money can be deposited as well as withdrawn at any time.
Thus, option C is correct.

Option A and B are not correct as these are deposited for certain time period and and  thus there is a restriction to withdraw money before the fixed period..

Option D is not correct as it is not used to accumulate money.