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 elements of book keeping and accountancy bank reconciliation statement understand the concept of bank reconciliation statemen bank balance, bank overdraft, meaning, and bank reconciliation statement accounting records

When businessman pays money to bank it is known as _________________.

  1. withdrawal

  2. deposit

  3. expenses

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

The bank is a keeper of our money and safeguards it also paying an interest.

If any money is paid to the bank which is not in a form of interest or penalty or any fees, it is a deposit which is payable by bank on demand.

Multiple choice elements of book keeping and accountancy bank reconciliation statement understand the concept of bank reconciliation statemen bank balance, bank overdraft, meaning, and bank reconciliation statement accounting records

Which of the following type of account can be opened with bank?

  1. Current Account.

  2. Savings Account.

  3. Fixed Deposit Account.

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

Depending upon the type of requirement a customer can open any of the given accounts with the bank.

Current Account is preferred by Business organisations; 
Savings Account is preferred by salaried people; 
FD Account is a form of investment instrument.
Percentage of interest fetched by these accounts will differ depending upon the type of account. 

Multiple choice elements of book keeping and accountancy bank reconciliation statement understand the concept of bank reconciliation statemen bank balance, bank overdraft, meaning, and bank reconciliation statement accounting records

A bank is an insitution which deals in ________.

  1. goods

  2. money

  3. issue of currency

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

A bank is an institution which deals in money. It facilitates the transactions of different types of business both small and large scale and even on an individual level. Even though banks deal in money still they are not empowered to issues currency. In India only the Reserve Bank of India (RBI) has the power to issue currency.

Multiple choice elements of book keeping and accountancy bank reconciliation statement understand the concept of bank reconciliation statemen bank balance, bank overdraft, meaning, and bank reconciliation statement accounting records

When businessman takes money from bank out of its account it is known as _________.

  1. withdrawal

  2. deposit

  3. expenses

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

The bank is a keeper of our money and safeguards it also paying an interest.

If any money is taken from the bank it is called 'withdrawal', which is the right of the account holder, to withdraw as per his wish within the limits as prescribed by the respective banks.

Multiple choice elements of book keeping and accountancy bank reconciliation statement understand the concept of bank reconciliation statemen bank balance, bank overdraft, meaning, and bank reconciliation statement accounting records

Banks objective is to ________.

  1. collect money on behalf of client

  2. give loans to client

  3. accept deposits of clients

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

A bank is a financial institution that deals in money by lending money and accepting deposits. 

It accepts deposits from customers for a return in the form of interest and then lends this money as loans to various people who are in need of funds. It also performs other funtions such as collecting money on the behalf of it's customers or making payments on the behalf of it's customers.

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

All the documents which are used by the account holders to facilitate transactions with bank are collectively known as __________ documents.

  1. Legal

  2. Bank

  3. Deposit

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

All the documents which are used by the account holders to facilitate transactions with bank are collectively known as bank documents. Bank documents include pay in slip to deposit money, withdrawal slip to withdraw money and cheques to make and receive payments.

Multiple choice business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

Account holders are required to carry a passbook whenever he goes to the bank to do banking transaction.

  1. True

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

True. Account holders should always carry passbook when they visit the bank for doing any transactions. The passbook has all the bank details needed to do the transactions. 

Multiple choice organization of commerce and management emerging trends in business definition, scope and benefits of e-business emerging service business in india emerging modes of services

What is ASBA in e-invest?

  1. All Scheduled Bank Association

  2. Application Supported by Blocked Amount

  3. All India State Bank Association

  4. All Saving Bank Account Holders
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

ASBA stands for Application Supported by Blocked Amount, a process developed by SEBI for applying to IPOs where the application money is blocked in the bank account rather than deducted immediately.

Multiple choice organization of commerce and management emerging trends in business definition, scope and benefits of e-business emerging service business in india emerging modes of services

__________ refers to all forms of business transactions which are carried out through electronic processing and transmission of data including text, sound and visual images.

  1. M-commerce

  2. E-commerce

  3. B-commerce

  4. D-commerce
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

E-commerce stands for electronic commerce where the information or trade between two parties are done through electronic transmission of data that includes text, sound and visual images. It makes use of various electronic platforms such as intranets, extranets and  the internet to conduct a company's business.

Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

_____________ are formed to provide financial support to the members.

  1. Producers' co-operative societies

  2. Co-operative marking societies

  3. Co-operative credit societies

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

Co-operative credit societies are formed to provide financial support to the members. The society accepts deposits from members and grants them loans at reasonable rates of interest in times of need. Village service cooperative society is an example of cooperative credit societies.

Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

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

  1. Producers' co-operative societies

  2. Co-operative marketing societies

  3. Co-operative credit societiesq

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

Co-operative credit societies is an artificial voluntary association of people who work together to provide financial support inclusion to its member. For example- Village Service Co-operative Society and Urban Cooperative Banks. 

Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

The co-operative society follows the principles of "_________".

  1. Cash and credit

  2. Cash and carry

  3. Credit and carry

  4. Cash and carry forward
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The cooperative society transfers at least one-fourth of its income to general reserve.Therefore, these kind of societies operates on the principle of cash and carry.