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 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 A demand deposit is a type of account from which funds may be withdrawn at any time without having to notify the institution.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.

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

As per the news published in various newspapers, loans to MSEs by rural banks will be treated as priority sector loans. What is the full form of MSE?

  1. Multi Service Enterprises

  2. Micro Software Enterprises

  3. Micro and Small Enterprises

  4. Mutual funds and Service Entities
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In the context of Indian banking and government policy, MSE stands for Micro and Small Enterprises. This term is widely used in the classification of priority sector lending.

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

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

A branch office is an outlet of a company or, more generally, an organization that unlike a subsidiary does not constitute a separate legal entity, while being physically separated from the organization's main office. Branching is particularly widespread in banking and other financial institutions, where the products' complexity requires local offices to act more like an agency than as a separate company. A branch structure exposes the owning company to full taxability and legal liability in regard to the branch office's operations.

Multiple choice business studies insurance - introduction and importance concept, scope and social security in india concept of social security industrial relations, trade unions and social security

If the account holder discontinues investment in NPS, the account will be frozen.

  1. True

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

If the account holder discontinues investment in NPS, the account will be frozen. National Pension System (NPS) is a government-sponsored pension scheme. It was launched in January 2004. National Pension Scheme provides old age income with reasonable market based returns. NPS was initially launched only for government employees.

Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

NABARD provides refinance for investment in the following activities.
I. Minor irrigation
II. Land development
III. Soil Conservation
IV. Dairy development
Which of the following are correct?

  1. I, II and III are correct

  2. II, III and IV are correct

  3. I, II and IV are correct

  4. All are correct
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All the mentioned activities contribute to the economical and agricultural development of rural areas. This helps the rural community to earn their livelihood leading to greater standard of living. NABARD provides refinance for the investment in such activities. 

Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

The SIDBI has set up a technology bureau for SSI units in ________.

  1. Kolkatta

  2. New Delhi

  3. Mumbai

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

The SIDBI has set up a technology bureau for SSI units in New Delhi.

The Technology Bureau for Small Enterprises (TBSE) provides a platform where small enterprises can tap opportunities at the global level for acquisition of technology or establish business collaboration. Resulting from the joint initiative of the United Nations' Asian and Pacific Centre for Transfer of Technology (APCTT) and Small Industries Development Bank of India (SIDBI) it represents, under one roof, synergy of technology and finance.
TBSE also receives partial funding from the Office of DC(SSI), Government of India.

Multiple choice accountancy statement of changes in financial position preparation of cash flow statement cash flow statement finance

Which one of the following is not a method of credit control?

  1. Bank rate policy

  2. Open market operations

  3. Credit deposit ratio

  4. Cash reserve ratio
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Bank rate policy, open market operations, and cash reserve ratio are standard quantitative instruments used by a central bank for credit control. The credit-deposit ratio is a banking metric used to calculate liquidity, not a direct monetary policy tool used by central banks for credit control.

Multiple choice elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

The hundi payable at sight is called Darshani hundi.

  1. True

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

 A hundi payable at sight is called darshani hundi. It is negotiable and is like a demand bill. It may be sold at par or at premium or at discount. A darshani hundi should be presented for payment within a reasonable time of its receipt by the holder.