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 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.

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.