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 economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

 __________ are financial assets which are not a medium of exchange but are a close substitute for a transaction of business. 

  1. Equivalent money

  2. FIAT money

  3. Token money

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

Near money refers to highly liquid financial assets that are not legal tender (like currency) but can be easily converted into cash, such as savings accounts or treasury bills.

Multiple choice social science public health and the government food security and related aspects food security rural development role of the government in health

Micro credit or micro-finance is a novel approach to banking with the poor. In this approach, bank credit is extended to the poor through _________.

  1. Self-Help Groups

  2. Anganwadi

  3. Cooperative Credit Societies

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

Micro-credit: Micro-credit is the provision of thrift, credit and other financial services and products of very small amount to the poor in rural, semi-urban and urban areas for enabling them to raise their income levels and improve living standards. The micro-credit institutions are those which provide these facilities.
Self Help Groups: A self-help group is a registered or unregistered group of micro-entrepreneurs having homogeneous social and economic background voluntarily coming together to save small amounts regularly, to mutually agree to contribute to a common fund and to meet their emergency needs on mutual help basis. The group members use collective wisdom and peer pressure to ensure proper end-use of credit and timely repayment thereof.

Multiple choice elements of book keeping and accountancy nature of accounts and rules of debit and credit meaning, advantages and limitations of journals understand the classification of accounts introduction to books of prime entry

Bank A/c is ____________ type of account.

  1. Personal

  2. Real

  3. Nominal

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

Personal accounts deals with persons, i.e. human being and artificial judicial persons such as companies, government organisations, HUF, etc.

Personal accounts are classified into three subcategories: Artificial, Natural and Representative.
Natural personal accounts: Accounts that are concerned with natural human beings. It includes accounts of debtors, creditors, proprietor, etc.
Artificial personal accounts: All the business concern has a separate legal identity in the eyes of the law, and so the entities are different from its members. Therefore, the accounts of clubs, charitable trust, company, bank, etc. are covered under this category.
Representative personal accounts: The accounts which represent persons or group thereof, are called representative personal account, such as capital A/c, drawings A/c, prepaid A/c.
Bank is an example of personal account and not a real account. All the accounts related to an individual, a firm or a company are termed as personal accounts. Hence, Bank is an example of a personal account.

Multiple choice elements of book keeping and accountancy nature of accounts and rules of debit and credit meaning, advantages and limitations of journals understand the classification of accounts introduction to books of prime entry

Overdraft facility is allowed to proprietor's personal account.

  1. True

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

Current account is the account on which overdraft facility is allowed by a bank. This facility is provided to the current account holders according to the business needs. It allows a trader to withdraw excess amounts over the amount deposited in the bank account up to a prescribe limit. Overdraft facility is provided to a business for meeting its various business needs and not the proprietor's personal account. A business opens a current account with a bank and overdraft facility is provide on the current account of the  business.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

With the help of trade which type of services are developed?

  1. Business complex

  2. Banks

  3. Credit societies

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

As trade increased, with the help of it, newer business buildings grew up. With the shortage of area and also because of easier communication, they started growing complexes. A cooperative society that lends money collected from its members at low rates of interest also grew up to help for the time being. Banks also grew as did international trade to keep the growth and development of the country in check.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

The company can ___________.

  1. Enter into contracts

  2. Borrow money

  3. Open banking account in its name

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

Company is a distinct as well as legal entity and would be liable for his own.

Therefore, a company can borrow money, enter into contracts, open bank account in its name, purchase its own shares.

Multiple choice commercial studies cash book and bank related transactions objectives and importance of bank reconciliation statement meaning of petty cash book bank balance, bank overdraft, meaning, and bank reconciliation statement

A bank statement is a copy of ___________.

  1. a customer's account in the bank's book

  2. bank column of the cash book

  3. cash column of the cash book

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

An extract from bank ledger is a bank statement.

It is customer's copy and shall reflect all the transactions during the period including the bank charges, interest etc.
Even if no transactions have been made, a bank statement shall be processed to show the balance as on date. 

Multiple choice meaning and elements of computer system computer in accounting accountancy

Which of the following do you think is NOT necessary for computerisation system in a bank?

  1. Effective customer service

  2. Effective back office integration

  3. Focus on manual records

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

Focus on manual records is not necessary for computerisation system in a bank.

Manual record keeping systems is keep invoicing, payment and other business transaction records electronically or manually. The principles are the same for each but keeping records electronically will make some important tasks easier.

 

 

Multiple choice functional area of management financial management nature and significance of management organisation of commerce and management business studies

________ is a person or association of persons in whose favor the letter of credit is opened.

  1. Applicant

  2. Issuing bank

  3. Beneficiary

  4. Advising bank

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

A letter of credit is defied as an arrangement by means of which a bank acting at the request of a customer, undertakes to pay a third party a predetermined amount by a given date, according to agreed stipulations and against presentation of stipulated documents. A beneficiary is an exporter in whose favour the letter of credit is opened.

Multiple choice functional area of management financial management nature and significance of management organisation of commerce and management business studies

Minimum cash reserves fixed by law is a percentage of _________.

  1. capital and reserves

  2. securities held

  3. aggregate deposit of the bank

  4. aggregate loans and advances
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
The aggregate banking deposit is a calculation which determines if your money is federally insured from loss or can determine how much of your money is at risk with that financial institution.
Therefore, minimum cash reserves are a percentage of the aggregate deposits of the bank, by law. 
Multiple choice functional area of management financial management nature and significance of management organisation of commerce and management business studies

"Finance may be defined as that administrative area or set of administrative functions in an organization which relates with the arrangement of each and credit so that the organisation may have the means of carrying out its objectives as satisfactorily as possible."

  1. B.O Wheeler

  2. J.F. Brandley

  3. Howard and Upton

  4. William J. Stanton
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
According to Howard and Upton, “finance may be defined as that administrative area or set of administrative functions in an organization which relates with the arrangement of each and credit so that the organization may have the means to carry out the objectives as satisfactorily as possible".
Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

On due when Drawee Fails to make the payment of the bill _____________.

  1. Bill is Honored

  2. Bill is Dishonored

  3. Bill is cancelled

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

Dishonour of a bill of exchange occurs when the drawee fails to settle the payment on the date of maturity. When the bill of exchange is dishonoured, the liability of the acceptor is restored (he/she becomes the debtor again).

Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

Refusal or inability of the acceptor to pay the amount of bill is termed as _______.

  1. refusal

  2. dishonour

  3. retirement

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

Dishonour of bill happnes when the acceptor of the bill fails to make the payment on the date of maturity of the bill. Hecne, laibility of the acceptor is restored. Entries made for recording dishonour of the bill of exchange are reverse of the entries of recording drawing of the bill.

In the books of drawer:
Acceptor A/c Dr.
             To Bills Receivable A/c
(Bill dishonoured)

In the books of acceptor/drawee:
Bills Payable A/c Dr.
             To Drawer A/c 
(Bill dishonoured)

Multiple choice elements of accounts overview of computerised accounting system accounting software concepts and types of computerized accounting system types of accounting software

The ___________ of data, representing actions of the ATM user, occurs almost instantaneously in case of the online transaction processing system.

  1. revalidation

  2. processing

  3. storage

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

In an online transaction processing system, the processing of data occurs immediately upon entry to provide real-time results.